What is one of the main purposes of product development and management in insurance?

The primary purpose of product development and management in insurance involves both the creation of new, marketable products and the maintenance of existing products to meet the evolving needs of consumers. This process is crucial because the insurance industry operates in a constantly changing environment influenced by factors such as market trends, regulatory changes, and shifts in consumer expectations.

Developing new products allows insurers to tap into emerging markets, address unmet needs, and stay competitive. Maintaining existing products ensures that they continue to be relevant and provide value to policyholders. This dual focus helps insurance companies sustain their market presence and adapt to new opportunities, ultimately contributing to their long-term success and profitability.

Product management should also consider customer feedback, conduct market research, and evaluate performance metrics to enhance offerings, ensuring they align with current demands and risk management strategies. The emphasis on both development and maintenance underscores the importance of innovation while also valuing established products that continue to fulfill customer requirements.