Page 19 - Insurance Times March 2022

Consolation Prize Winner : Technical Paper Writing Contest 2020 Cover Story

INSURANCE

PRODUCT

DEVELOPMENT

IN THE DIGITAL

WORLD

ABSTRACT artificial intelligence, cyber security, IoT, digital analytics
Product development is the skeleton of insurance industry etc. Nowadays, Insurers are rapidly investing in Disruption
and developing new products is not a mere supply-demand and Digital Innovation, but they are failing to recognize
situation, but it is rather identifying which product will that the root, which supports the same, is Product
best serve the needs of today's increasingly demanding development.
insurance customers. There are many external forces to the insurance company
Insurers are determined to make every moving part of their like economic trends, the agendas of independent agents,
business serve the customer, and what this means in concrete the activities of competitors, and the expectations and
terms is that every division of the business has a contribution price sensitivity of the insurance market, which directly
to make towards the creation of customer-centric products affect the premium volume, and profitability of the product.
while trying to address a certain business problem or planning In order to adapt to the external forces, the base structure
new revenue streams for the organization. of a product is crucial. However, if the base structure is
Typically, new products are built with the customer in mind not modified, innovations will not happen. The companies
and more 'benefit-rich' it is, the easier it is to push on to have to be more inclusive and flexible in the base structure,
the customer. In order to create more value for customers, which can accommodate innovation.
Insurers are focused on building products which aligns with Product diversification is a key factor, which leads to
creation of creative and innovative products. Only true
About the author experimentation will create product diversification and
sometimes it can lead to failure. Nevertheless, investing
Sreejith M Roshni Chandar in these failures can bring a new product into the market.
PGDM Students of National Insurance Academy Therefore, the steppingstone of innovation is product
PUNE development.

The Insurance Times, March 2022 19