|
MicroInsurance Centre Briefing Note # 4: An Example of Systematic New Product Development for Life Microinsurance
McCord, M. J., Wilson, T., Sagoe, P. & Markowski, P.
Publication Date: 2003
Published by: MicroInsurance Centre
Document Type: Paper
Encouraging innovation in new product development by adopting a systematic approach
This paper asserts that for a new product to be successful, a critical prerequisite is the systematic new product development process. The paper reviews the process adopted by Co-operation and Relief Everywhere (CARE) in Ghana for developing a life insurance and pension product.
The paper discusses steps that must be followed during the designing and launching of a new product:
- Evaluation and preparation;
- Market research;
- Design;
- Pilot test;
- Roll out.
The authors argue that the process of new product development must be driven by three important considerations:
- Customers,
- Competition,
- Institution.
Describing briefly each stage of new product development, the paper lists the following lessons from the process:
- Following a systematic product development process;
- Selecting the insurer before choosing the lending institution;
- Making sure the relationship facilitator has a strong understanding of insurance;
- Outsourcing assistance where appropriate;
- Having quantitative objectives to track during the test;
- Holding salespeople accountable with incentives and targets;
- Ensuring that there are no subsidies for sales people unless they are directly tied to productivity;
- Approaching regulators only after thorough preparedness;
- Cultivating relationships with credit delivery institutions.
| 
View this Document
Email this Document
