As the panorama of the insurance industry has changed markedly as compared to what it was ten years ago, the marketing strategies that worked then may not work in the current market. New product development has become cardinal for business enhancement and gaining financial grip over the market in the insurance industry. We are facing an era where customer demands are hastily changing, and the market is becoming increasingly competitive.
Let us learn how insurers can successfully introduce new products in the midst of this competitive market.
Understand your product
It is impossible to sell something effectively, even if you are the best salesman unless you understand it. There is a lot to learn about the insurance product that you wish to merchandise as they are bound by company policies and state insurance laws.
Although, you are well educated about state regulations before receiving insurance license, seek further relevant product training from your insurers to learn all that you can about your insurance product. Studying market competition should also be given importance so you can enhance your product accordingly.
Considerations for launching an insurance product successfully in the market
Following are the major points that must be kept in mind for expeditiously introducing a product in the insurance market:
1. Know your market
It is crucial to understand your targeted market, midst which you have to introduce your product as an insurer. This includes getting the knowledge of competitors (if you have any) and understanding the landscape from the standpoint of regulations. Get a thorough understanding of how the Departments of Insurance (DOIs) acknowledge the products in your targeted states.
2. The company should be licensed to write a new product
However obvious it may seem, but there are many companies that do not pay heed to this step and then deal with the circumstances later. Required licenses must be dealt with by someone who is well familiar with the company licensing process. It is always preferable to be on a safer side rather than wasting resources and time on an obstructed product development.
3. Product should be compliant
The chances are faint that across all states, you will be able to write your product exactly the way you want. You may have to modify your product a little according to each state.
Hence, it is crucial to conduct thorough compliance research before you go ahead and implement your product so that you can mold it accordingly. Skipping this step can lead to multiple rejections and time-consuming questions from DOIs.
Strategies that can help insurance organizations to get expeditiously innovative in the market
1. Try the Greenfield approach
Previously, the transformation chances for insurance businesses were very limited. This process took enormous time and was both risky and costly. Stating the facts, almost half of these initiatives failed.
However today, these carriers have an option of the Greenfield approach, which includes accessing a partner’s current administrative landscape so as to acquire the outside expertise and perspective of an industry counterpart. This facilitates a low-risk and rapid transformation.
2. Leading the way
In the past, insurance companies preferred being ‘fast followers’, that is, they were not the leaders in adopting innovations, but benefited largely by being second in the line as they did not have to bear the initial risk. But now, because of customer acquisition and increasing market competition for growth, insurers are leading the way to adopt the latest innovations.
In this scenario, launching an insurance product, and being the first one to market, it becomes essential that things execute seamlessly. Carrying this approach will structure brand preference and will, in turn, lead to business growth.
3. Keep experimenting
As the old adage goes – “change is the only constant”, insurers cannot keep on implementing the same marketing strategies for a product over the years due to fluctuating customer requirements and market needs. However, the requirement for the products to be unique does not imply that the insurance products should be complex.
In the current market, it has become essential to simplify the products. Experimenting quickly and trying new strategies is the key to market acquisition.
4. Adopt an open distribution platform
The right distribution channel can differentiate your approach from others and can ensure eventual growth with time. When you are focusing on innovation, different products that you will introduce in the market may appeal to different audiences. While it is probable that self-service and numerous varied sales increase the success possibility, it is the responsibility of the carriers to diversify the delivery channels and invest in different operating models.
5. Trusted partners
Insurers must have a flexible ecosystem that makes them secure from the market changes and regulatory requirements. Along with the same, having the right partnership is equally important. By right partnership, we mean collaborating with a business partner who is forward-thinking and reflects your own goals for your business.
Hence, this will ensure that your partner drives you for increased business growth and challenges you to achieve milestones in the path of your business success, taking it to the next level.
Strategic marketing of merchandise is your best bet for success when it comes to market analysis. You can follow the tips mentioned above to enhance your marketing strategies and launch your insurance products successfully. A lot of research and experience goes into the marketing process when it comes to acquiring customers for your insurance product.
If you feel that your in-house team is not equipped or experienced enough, you can consider collaborating with an insurance outsourcing company. Get in contact with ISW as our insurance product consulting company has experts whose compliance, industry, and marketplace experience can assure you better marketing for your products cost-effectively. Contact us now!