What might indicate the need for modification of an insurance product?

Stagnant sales trends indicate that an insurance product may not be meeting the needs of the market or that it has become less competitive. When sales are not growing or are flat over a significant period, it suggests a lack of interest or relevance in the product offering, hinting at potential issues such as outdated features, pricing that is not aligned with customer expectations, or increased competition. This can signal that modifications to the product may be necessary to reinvigorate sales, improve appeal, or respond to changes in consumer behavior or preferences.

While other options might involve important considerations in evaluating an insurance product, they do not serve as direct indicators of the essential need to modify the product. Higher-than-average marketing costs could suggest inefficiencies in reaching the target market, but this may not necessarily mean the product itself needs to change. Consistent customer feedback is invaluable but it could vary in nature—sometimes feedback shows customers love a product and other times it might highlight areas for improvement. Niche market expansion opportunities indicate the potential for growth but do not inherently suggest that the existing product must be modified; rather, they might point to developing new products or adapting existing ones to better fit those niche markets.