The development of new products in the Nigerian insurance industry is the subject of this research work, which includes the background of the study, a statement of the problems, the study’s objective, and research questions, as well as the significance of the study, its scope and limitations, and a definition of terms. The second chapter includes a survey of related literature, as well as historical development and so on. The third chapter covers study technique, data sources, instrument use, and other topics. The primary findings are covered in Chapter 4, and the conclusions and recommendations are covered in Chapter 5.
BACKGROUND OF THE STUDY
Insurance is a relatively new business in Nigeria, despite the fact that it has been around for a long time in Europe. In this sense, there hasn’t been much published on the emergence of new insurance products.
According to media, while new product development in the insurance industry is not subject to copy right, it remains a vital technique of encouraging the industry’s growth. The competitive behavior of insurance businesses and the structure of the insurance market are determined by insurance products. Most insurance companies’ marketing activities are centered on customer needs.
Two types of insurance policies or products have been identified.
1. Those products/policies that offer security;
2. Policies that offer both protection and investment.
These two major conventional products are plentiful in life.
The policy holder is protected for a limited period of 10 – 15 years in products/policies that provide protection. A convertible term policy allows the policyholder to switch to a different type of policy at any time during the policy’s term, even if his health deteriorates.
Profit participating endowment and whole life policies are examples of policies that combine protection and investment. Insurance firms have created a plethora of products in order to stay competitive. Modifying existing products or developing new ones to meet the needs of the insured public is what product development entails.
STATEMENT OF PROBLEM
The following are some of the issues that this study project aims to address:
1. The insurance industry has struggled to develop new products at times, with mixed results.
2. To figure out why existing products aren’t being modified as quickly as they should be, and why new products aren’t being developed as quickly as they should be.
3. To understand why the insurance sector is so fiercely competitive.
OBJECTIVES OF THE STUDY
Based on the same issues that the insurance industry has been experiencing, the study was created to:
1. To see if new products are different from existing products;
2. To determine the effectiveness of new insurance policies;
3. To identify the major issues in the insurance industry’s marketing of new products;
4. To determine how new products affect the insurance business.
The following are some of the research questions that are relevant to this project’s research:
Is there a requirement for the development of new insurance products?
Do the current products meet the people’s purchasing requirements?
Is there anything that has to be changed or rejected outright?
Who in the insurance company is responsible for the modification or development of new products?
Is it true that the repackaging of new insurance policies has an impact on current ones?
SIGNIFICANCE OF THE STUDY
The following people will benefit greatly from the research:-
The research will serve as a reference for current and future insurance policies. Statistician or historians interested in using the insurance industry’s large amount of available data.
This research will be valuable to the insurance public since it illustrates the impact of putting new insurance products into the market.
Furthermore, this research will broaden the knowledge of students who may pursue product development research in the future.
Finally, this research will raise public knowledge of new insurance products and educate the broader population (country).
SCOPE OF THE STUDY
The study focuses on the development of new products in three insurance businesses in Enugu that were chosen at random.
LIMITATION OF THE STUDY
During the course of this investigation, the researcher faced numerous challenges, including time constraints, a lack of funds, and so on. The time allotted for writing this report was insufficient, and it interfered with other academic activities. Due to a lack of funds, the author is unable to visit to numerous locations in search of resources. Another issue was the lack of research resources. Another issue is the respondents’ lack of response. Many of the employees I spoke with were concerned that if they provided all of their information, their employer would retaliate against them.
DEFINITION OF TERMS
1. Claims: A claim is the insured’s demand for payment of benefits after a loss.
2. Fraud: An illegal method of obtaining financial gain at the cost of others.
3. Insured: A person or persons designated as being covered by an insurance policy under an existing policy.
4. Risk Assessment: This is the process of determining whether or not a risk is acceptable.
5. Moral Hazard: An individual’s terrible moral behavior.
6. Policy: A document that proves the existence of an insurance arrangement.
7. Premium: The amount paid by the policyholder in exchange for being covered by an insurance contract.
8. Double Insurance: When the insured is affected by or on behalf of two or more policies while on an adventure.
9. Liability is a term used to describe a scenario in which someone is held responsible for something.