Insurance Product Innovation

Client Background

A well-established insurance company known for offering traditional products, including life, health, and property insurance, was facing competitive pressures from new market entrants and shifting customer expectations. The company’s existing portfolio needed innovation to address modern customer needs, such as long-term financial security and personalized insurance options. The client sought the expertise of OILIFINA Consulting to create a forward-thinking product line that could expand its market share and improve customer engagement.

Objectives

Develop a New Product Line
The insurance company’s primary goal was to introduce an innovative product that would address unmet customer needs, provide added value, and leverage emerging trends. This required in-depth market analysis to understand customer pain points, as well as a product design that would differentiate the company from competitors in a crowded market.
Increase Market Share
The target was to grow market share by at least 10% within the first year of launching the new product. The goal was to capture a new demographic while retaining existing customers, enhancing the company’s competitive positioning.
Enhance Customer Engagement
By delivering a unique and relevant offering, the company aimed to foster stronger customer relationships, encouraging loyalty and attracting new clients. This objective also focused on appealing to under-served demographics that were not fully addressed by traditional insurance products.

Our Approach

OILIFINA took a comprehensive, phased approach to develop the new insurance product, focusing on insight-driven product development and strategic alignment with the company’s market objectives.

Market Research and Customer Insights
We conducted detailed research to understand the current market landscape, customer pain points, and unmet needs. The analysis revealed a gap in products that combined life insurance with benefits for long-term care, a concern for aging customers. Surveys, focus groups, and competitor benchmarking provided valuable insights, shaping the product concept and positioning.

Ideation and Concept Development
Cross-functional workshops were held, engaging teams from product development, marketing, and customer service to brainstorm and evaluate product ideas. The aim was to generate concepts that would differentiate the company from competitors while resonating with target customers. Concepts included hybrid insurance products, flexible coverage options, and added financial support for future care needs. Each concept was evaluated for feasibility, market potential, and alignment with customer insights.

Feasibility Analysis
For each proposed concept, OILIFINA team assessed feasibility across operational, technical, and financial dimensions. This step ensured that the product could be implemented without significant disruptions or excessive costs. Financial models were built to predict the product’s profitability, and technical assessments validated the integration of the product with the company’s existing digital systems.

Product Design and Development
Collaborating closely with the client’s product development team, we guided the design of the new product—a hybrid insurance policy combining life insurance and long-term care benefits. Key features included flexible premium options, policy customization, and the ability to withdraw funds for healthcare expenses if needed. This product addressed an important customer need, offering both life insurance coverage and peace of mind for potential future care requirements.

Pilot Testing and Feedback Loop
To ensure the product met customer expectations, a pilot program was launched with a select group of existing customers. This allowed the team to gather real-time feedback on usability, policy structure, and customer satisfaction. Customer feedback was then incorporated to refine product features, enhancing its appeal before the full launch. This iterative approach also built customer anticipation and increased the likelihood of adoption.

Implementation

Innovative Product Offering
The final product was a hybrid insurance policy providing life insurance with added long-term care benefits. This product offered flexibility, allowing policyholders to access a portion of their benefits for care expenses if required. This offering was unique, addressing the dual concerns of life insurance and potential healthcare costs, which made it appealing to a growing segment of aging customers and families.

Digital Platform Integration
A digital interface was developed, allowing customers to manage policies, update information, and make claims online. This streamlined the customer experience and facilitated engagement, especially among younger and tech-savvy customers. The digital platform also included an intuitive dashboard with easy access to policy details, ensuring transparency and ease of use.

Targeted Marketing Campaigns
A comprehensive marketing strategy was executed to introduce the new product to the market. This included educational content to inform customers about the benefits of hybrid insurance, digital ads targeting specific demographics, and in-branch materials to support sales teams. The campaign used both digital and traditional channels to maximize reach and reinforce the company’s innovation-driven brand.

Results

Market Share Growth
Within the first year of launch, the company achieved a 12% increase in market share, surpassing the original goal. The innovative product attracted new customers, particularly those looking for long-term care options, while encouraging existing customers to stay with the company due to the added value of the hybrid offering.

Customer Acquisition and Retention
The product’s appeal to a broader customer base, including those concerned about long-term healthcare, helped the company acquire a new customer segment. The hybrid policy also increased retention rates, as existing customers appreciated the added value and flexibility. This contributed to overall customer loyalty and engagement, reinforcing the company’s reputation as a customer-centric, innovative insurer.

Enhanced Brand Perception
Through the successful launch and customer-focused marketing, the company’s brand was perceived as forward-thinking and responsive to customer needs. Positive feedback and industry recognition further boosted the company’s reputation, positioning it as a trusted, innovative leader in the insurance market.

By identifying market gaps, designing a unique product, and executing an effective launch strategy, OILIFINA helped the insurance company achieve significant results. This project illustrates how targeted product innovation, combined with customer insight and digital integration, can drive growth and increase market share in the competitive insurance industry.