Is Building an Insurance Product Right For Your Business?

Insurance is a hot market right now, and there’s a lot of interest in developing innovative new insurance products. But is it the right opportunity for your business?

Maybe your business already sells insurance, and you’re thinking of going after a new market segment with an unmet need. Maybe you’re in a complementary business, and considering if a new type of insurance product could help grow your revenue. Either way, creating a new insurance product (and the program needed to support it) is no small task. Here are a few things to think about as you decide if developing a new insurance product is a good fit for your business.

The Insurance Opportunity is Real and Significant

It’s no wonder you’re considering developing a new product: in many ways, the timing has never been better. The insurance market is particularly ripe for new entries, and the rewards for success are high.

Insurance revenue compounds as you grow. Insurance revenue is recurring revenue. Your customers pay their premium amount for as long as their policy is active, and that can add up quickly as you add more customers. Once a product picks up momentum in the market, its revenue growth can rapidly start to multiply as new policyholders’ premiums are layered over existing ones.