| Abstract: | The main purpose of this study is to assess the Challenges & Prospects of New Product Development
the case of Nyala Insurance SC. This research is descriptive type research & uses census survey. Both
primary and secondary methods of data collection are applied. The researcher tries to find out the
possible opportunities that gained during NPD and identify the major challenges that faced by the
company, more over to recommend them to tackle the challenges ahead of time and harvest or utilize
the opportunity to the maximum. The consumer perception, nature of insurance products, cost of
marketing, mis-trust in insurer- insured relationship, failure to adopt information technology, low
trained & inexperienced marketing staff, pricing of insurance products, cost of insurance, lack of
innovativeness, complex procedures in claims management, Lack of awareness, cost of product
development, lack of professionals like actuarial, budget, product quality, accessibility & warranty,
purchasing power & willingness to pay it, policy issues, and distribution issues are found to be the
major challenges of new product development. Profit maximization, wining customers, increase market
share, build brand, increase business continuity, good will & creating differentiated product are the
main opportunities gained from new product development.
Based on the findings the researcher recommend to NISCO to give due attention to hire professionals
who could possibly perform well in the insurance industry, needs to develop marketing strategy which
encourages the development of new products by endorsing the appropriate budget for it & also must
work on alleviating all the challenges that affect its new product development strategy. |
