Which metrics are essential to evaluate in a market analysis for new insurance products?

• A. Customer service satisfaction
• B. Target demographics
• C. Market saturation levels
• D. Company ownership structure

Answer: (B)

Evaluating target demographics is crucial in a market analysis for new insurance products because it helps identify the specific groups of potential customers who are most likely to buy the product. Understanding factors such as age, income, lifestyle, and needs allows insurance companies to tailor their offerings to meet the expectations and requirements of these groups. This demographic insight forms the backbone of effective marketing strategies and product design, ensuring that the products align with the preferences and challenges faced by the target audience.

For example, a product aimed at millennials may focus on digital accessibility and affordability, while a product for seniors might emphasize comprehensive coverage and wellness benefits. Without a clear understanding of target demographics, companies risk developing products that do not resonate with the potential customers, leading to poor market performance.