How to make the product more marketable

If the preiums are too high, you can

• Consider the distribution channel used, if the policies sold through this distribution channel are price-sensitive.
• pay lower commission, but less incentive for brokers to sell.
• Lower profit margin, but need to sell more business to maintain existing profits
• improve effieciency, reduce expenses
• change investment strategy by adopting a higher risk approach
• Reduce elements of options / guarantees
• Reduce underwriting costs, may may lead to poorer claim experience
• Invest in riskier assets aiming to achieve a higher return. But the extent to which this strategy can be used depends on the level of free asset.

• Include additional cover, e.g critical illness, other illness
• include options for renewability or convertibility

• consider changes to the product design. e.g. remove options
• cross subsidize to reduce premiums. e.g. selling term assurance as a loss leader and hopefully, sell other more profitable contracts
• review reinsurance arrangements
• ensure that all possible tax efficiency are exploited.
• develop new distribution channels that maybe less price-sensitive (direct sales force, tied agents)
• fall in business may simply due to external factors, (e.g. recession, changing in buying habbits, or tax treatment of insurance)
• increase marketing budgets to improve profit. Risk: we spend money in the market but we don't bring in the new business.