The main strategies of insurance product development

The main strategies of insurance product development

Insurance product development strategy refers to the methods and approaches of insurance product development, which embodies the business strategy of insurance companies and is an important part of the business strategy of insurance companies. The purpose of product development is to choose the correct business direction and strategy of the company and strive for a favorable competitive position and greater market share. When developing products, insurance companies can adopt different technical strategies, combination strategies, organizational strategies and timing strategies according to the specific conditions of the insurance market and the actual situation of the company.

1. Technical strategy of insurance product development

The technical strategies of insurance product development mainly include: innovation strategy, improvement strategy, introduction strategy and renewal strategy.

The innovation strategy is to design and develop brand-new insurance products according to the characteristics and trends of market demand. For example, Lloyd's Insurance Company in Britain has initiated the development of insurance products many times, thus establishing its special position in the world insurance industry for 300 years. However, innovative products have to bear greater risks. Product innovation requires enterprises to have strong technical strength, management strength and marketing strength, which is difficult for ordinary small companies to do.

The improved strategy not only improves the insurance types of existing insurance companies, but also maintains their advantages and overcomes their shortcomings, thus making them more attractive to insurance customers. The application of this strategy can save the company's manpower and material resources, so many insurance companies use this strategy to compete for insurance business, but it also has the defects of outdated insurance types and easy imitation by other companies. For small insurance companies, it is difficult to take the road of technological innovation. Appropriate improvement of existing products should be a shortcut. Improvement can be functional perfection, or progress in insurance rates, payment methods and service forms.

The introduction strategy is to introduce insurance directly from other insurance companies. This strategy is adopted by many insurance companies because it has a specific reference, and it does not cost money and manpower, and the risk is very small. Although there is a lag in operation, it is also adopted by many insurance companies.

The renewal strategy is to improve the old types of insurance developed by the company in the past to meet the actual needs of insurance customers.

2. Combination strategy of insurance product development

On the basis of horizontal, vertical or cross combination of existing insurance products, new insurance products suitable for market demand can be developed. The combination method generally includes:

(1) The combination of property insurance means the reasonable reorganization of existing property insurance products, such as the combined sale of automobile insurance and automobile third-party liability insurance, family property insurance, and additional theft and emergency rescue. ;

The combination of personal insurance, such as the combination of endowment insurance as the main risk and critical illness insurance as the additional risk;

(3) The combination of property insurance and life insurance refers to the reasonable combination of subcategories contained in these two categories, such as adding personal accident insurance to the property insurance series.

3. Organizational strategy of insurance product development

In the process of developing products, how to organize manpower, financial resources, material resources and technology, insurance companies need to adopt different organizational strategies according to the actual situation. Generally speaking, there are two ways of independent development and joint development: independent development insurance means that insurance companies develop insurance products through their own market research departments, product design departments and specialized personnel, which are generally adopted by powerful big insurance companies; Joint development of insurance products means that insurance companies design and launch new insurance products through cooperation with other insurance companies, agents, brokers or related social institutions, so as to avoid detours and improve the quality of insurance products.

4. Timing strategy of insurance product development

It is also important to find the right time to enter the market after the insurance is developed. In the practice of insurance management, not all types of insurance are the first to enter the market. Insurance competition needs to seize opportunities and time waits for no one, but when to develop new products needs careful study. There are three main strategies: preemptive, follow-up and procrastination.

(1) The preemptive strategy is to be the first to launch a new product in the insurance market. Because there is demand in the market and there are no competitors, launching new products first may bring considerable profits to enterprises, and you can occupy a certain kind of insurance market first to improve the company's image and reputation. But because there is no precedent for reference, it also faces certain risks. Enterprises that are in the leading position in the competition usually adopt this strategy;

(2) Follow-up strategy, that is, according to the operation of a new insurance product of other insurance companies, after finding out the market situation and income of this insurance product, and combining the characteristics of this enterprise, follow the trend to develop new products and analyze the market and income of this insurance product. At the same time, when the income of a certain type of insurance declines and becomes exhausted, it will quickly withdraw from the market to avoid losses;

(3) Delay strategy, that is, first observe the product performance of other enterprises, learn their experiences and lessons, and then develop or improve products. Although it lags behind in product development time, it often has a late-comer advantage. Developing and updating more attractive insurance products to attract insurance customers will also achieve good product marketing results.

In short, insurance companies should look at insurance products from a dynamic point of view, because the significance of insurance products lies in meeting the needs of insurance customers, and insurance demand is constantly changing, so insurance products should also change accordingly. Because insurance demand is multi-level, the protection content of insurance products should also be multi-level. The development of insurance products must lay a solid foundation for insurance marketing, insurance underwriting, disaster prevention and loss prevention, and insurance claim settlement, and prepare for the smooth development of other insurance business links. ;