Product management function in insurance is responsible for coming out with different products. As mentioned earlier, an insurance company operates in various areas, such as life insurance, motor insurance, property insurance, and health insurance.

Having just one product for each of these doesn't help. Insurance companies want to reach out to the maximum audience and hence the need to have multiple products in one line of business. If we take example of life insurance, we see insurance companies having multiple products in life insurance, such as:

• Term insurance plans
• Endowment plans
• ULIP (Unit linked insurance plans)
• Life Insurance with saving plans
• Pension/Retirement plans
• Group insurance plans

Insurance companies can make these plans based on customer feedback, or in some cases, if competitor insurance company launches a plan. Once the new plans are taken over by marketing, it's important for the insurance company to keep monitoring the performance of these plans. Considering the cost involved in marketing efforts, plans which do not perform well may be discontinued.