Product design question

Design a travel insurance product for credit card customers.

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What this question tests

Product design for a financial services add-on, balancing customer value with underwriting and claims complexity.

Identify the user: credit card holders, particularly premium tier cardholders who travel internationally and want protection without buying a separate policy.
Name pain points: standalone travel insurance is an extra purchase decision at a stressful time (right before a trip), and claims processes are often slow and opaque.
Propose a solution: automatic coverage bundled into premium card tiers for trips booked with the card, covering common issues like trip cancellation, delayed baggage, and medical emergencies abroad.
Prioritize automatic, no-action-required coverage over an opt-in add-on, since removing the purchase decision entirely is the biggest friction reduction.
Address complexity: partner with an established insurance underwriter rather than building underwriting expertise in-house, since insurance requires specialized regulatory and actuarial capability.
Define success as claims satisfaction rate and increase in premium card adoption or spend attributable to the benefit.

Removes the purchase decision entirely by making coverage automatic for qualifying transactions, correctly identifying that as the biggest friction point.
Recognizes the build-versus-partner decision for underwriting, similar reasoning to other regulated financial products, rather than assuming in-house capability.
Ties success to card adoption and spend, connecting the benefit's value to the card business's actual revenue driver, not just claims volume.

Designing this as a separate opt-in purchase, missing the point of a card-bundled benefit's main advantage.
Ignoring the specialized regulatory and underwriting complexity insurance products require.

Would you partner with an insurer or build underwriting capability in-house, and why?
How would you handle a dispute where a customer's claim is denied?