In today's challenging business environment, it is becoming increasingly difficult for senior management to stay on top of the businesses of many lines in the highly volatile, complex business environment of the 90's. Given the above circumstances, senior management usually has limited time to become deeply involved on a continuing basis in the businesses of individual product lines. It is diffused throughout the organization. The product management approach pushes business management responsibility for individual product lines down lower in the organization, while maintaining senior management control and the integrity of individual functions.
Product management seems to be relatively simple in concept.
However, it is not easy to implement the approach with full effectiveness. Product management may not be right for every company, but we believe it is a concept that should be looked at carefully by mid-sized and large companies, given the operating challenges faced by the industry today. Life Insurance Companies Life insurance executives are considering product management because the business has become much more complex in recent years. Companies face new nonlife competitors, and product lines are longer. The products themselves are more complicated, and today's sophisticated consumer no longer takes the life insurance product for granted.