Product Development as a Key Priority for the Global Insurance Industry August 2013 BLOG POST
Product agility can help insurers overcome current industry challenges The global insurance industry is undergoing major changes. As such insurance companies around the world have started looking for new products and underpenetrated markets as it is becoming difficult for them to achieve growth with traditional products and markets. This is why it is important for them to understand the potential of leading-edge product development strategies to improve speed to market. Demographic changes are driving new product development….. Today, there are more single households than married ones, and this population would like to stay single for a longer period. These young single consumers are more likely to experience major life events – which often lead to the purchase of life insurance – including getting married, having children, and buying a home and further taking home insurance products. Younger single customers have different sets of needs. They are often additionally responsible for their elders, and they want to make sure their dependents are being cared for. Their needs would gradually change with the above-mentioned life events, and they would be looking for basic protection and savings as they enter the life insurance market for the first time. Past few economically weak years have forced consumers to cut household expenditure on insurance; this decline is most noticeable among younger consumers. The 18-35 age group customers who are first-time buyers of life insurance products are complete strangers to life carriers. These younger generations have adopted distinctive lifestyles and behavioral patterns that are unfamiliar to the industry. For several years, insurers have been focusing on needs of baby boomers and developing products for them, but now this value proposition would not work for younger consumers. To serve the younger segment of customers, insurers have to understand and measure customer behavior by collecting data on individuals. These insights play an important role in responding to the needs of the younger customers and accordingly introducing new products. Product agility can help insurers overcome current industry challenges….. Insurers continue to be challenged by changing market conditions and the need to continuously bring innovative insurance products to the market. Hence, it is imperative that they accurately understand customer expectations and needs, and deliver products that match these needs. Product agility can help insurers overcome current industry challenges. Product agility is flexibility to react quickly and cost effectively to consumer needs and market demands with relevant, profitable products.
Product development as a key priority for the global insurance industry
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Key to successful product development
Strategic focus is the cornerstone of any successful product development process. To design the process, it is important for a company to decide its strategic objective, i.e. whether it aims to be a market leader or a fast follower. Strategic framework for successful product process
Apart from these, the process should be clearly defined so that it is in alignment with the organization’s overall strategic goal and to replicate for further developments. To streamline various sub processes of product development companies work with experienced project management professionals. It is critical to have dedicated teams working collaboratively towards one aim with strictly following set targets. Successful product development process requires speed to market as far as innovative products are concerned.
Product development as a key priority for the global insurance industry
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