Top 4 Things to Keep in Mind When Adding a New Insurance Line

So, you’re an insurtech business that’s looking to grow. Adding a new line of business is the obvious next step, but what’s the best way to go about it?

You could build your own new program in-house, but since that’s a very long, expensive road, you’re probably going to leverage a partnership instead. That still leaves you with a long list of possible options that you’ll need to narrow down! 

In this blog, we’ll talk about the most important things to keep in mind while you’re planning your expansion, and how they can help you determine your best path forward.

1) Product Fit

This goes without saying in any business expansion: what do your customers need, and what can you offer to meet those needs?

It’s not always as simple as deciding to offer pet insurance, or cyber insurance, or whatever kind of insurance your customers will want to buy. There can be a lot of differences between products of the same type as far as what they cover (or don’t), and what value they provide for their cost. 

It’s clear that products without sufficient coverages aren’t great for the end user, but products with too much coverage can be almost as bad. Every additional protection included in a product increases the cost, whether the buyer will ever use it or not. So if a product includes many more coverages than the customer actually needs (or wants), then the customer isn’t getting great value for their money.