Challenges in Developing and Creating Package Product in the Non-Life Insurance Industry

Abstract

Insurance was developed over a period of several hundreds of years, and is still actively used by many. It was created for the protection of the insuring public. It gives peace of mind to the customer that he/she will be compensated by the insurer in the event of unforeseen and sudden loss, by securing an insurance cover. There are various product lines in the non-life insurance area, which are being offered to the insuring public(the assured / insured), namely Marine, Property, Motor, Personal Accident, Casualty, etc. The insured are purchasing insurance products for their protection, and agreed to pay certain amount (the premium)for a peril that will protect them from possible and unexpected loss. But for every policy there will always be exclusions, and not all policies are comprehensive—they do not cover all perils, but only those which the insured wants to be covered or wants the right to claim, whatever the cause is. With the demand of the consumer, the insurer, through its line underwriters, develops and formulates a product that will satisfy the needs of its customers so as not to lose them. But there are various factors to be considered in developing and creating a package product in the non-life insurance and this is the purpose of the study, to determine the factors and challenges encountered by the insurer in developing and creating new package product that will cater the needs and wants of its customers.