Which trend is NOT associated with product design and pricing in insurance?

The trend that is not associated with product design and pricing in insurance is higher underwriting costs. This option is significant because it reflects a cost factor rather than a trend in consumer-facing product design or pricing strategies.

In the context of trends in insurance product design, gender-neutral pricing represents an approach aimed at fairness and equality in premium calculations, as it eliminates discrimination based on gender. Improved mortality reflects advancements in healthcare and longevity, which can influence pricing models favorably. Preferential rates for non-smokers are also a growing trend, as insurers increasingly recognize the lower risk associated with non-smokers and seek to reward healthier lifestyle choices through reduced premiums.

Higher underwriting costs, while they may influence the pricing structure, indicate an internal operational concern rather than a change in how products are designed or priced for consumers. Thus, it stands apart from the progressive trends focused on enhancing product accessibility and aligning pricing with risk factors related to health and behavior.