Insurers must often reach customers indirectly through financial advisors and institutions, making messaging and campaigns more complicated. And the very nature of insurance and its intangible benefits presents a more complex value proposition, according to Beinsure Media Report about Insurance Marketing Strategies. Most insurance companies have been unable to overcome the organizational and technological barriers to actually implementing it effectively. There are several reasons why now is a critical time for marketers to lean into insurance marketing. Insurance marketing professionals can take advantage of a wide variety of digital marketing tools for targeting audiences and measuring results that can help to get the most return on limited marketing budgets. Best Insurance Digital Marketing is all about selling insurance policies and promoting to your target audience. If you’re relatively new in the market, there’s a high chance that only a few people know of your existence. This means that no matter how favorable your insurance policies are, you’re not making sales or generating leads because your brand awareness is low.
The use of marketing in various sectors of the economy has its own specifics, which should always be taken into account. Despite the possibilities of traditional marketing activities, most insurance companies use modern approaches to the implementation of marketing strategies. The indisputable fact remains that without excellent marketing activity it is impossible to survive in the face of fierce competition.
In modern economic conditions, there is a need for a specific application of marketing activities in accordance with the characteristics of individual economic sectors. In theory and practice, the characteristic features, similarities and differences between the marketing of goods and marketing of services have been clarified. The purpose of the article is to present the essence and specifics of insurance marketing.
The insurance market is an important part of human activity in any civilized country, a specific and complex sector of the economy. It is an important element of the market infrastructure, an indispensable component of the economic and social sphere. The insurance market is a place where insurers or their intermediaries meet with those wishing to insure or reinsure.
The insurance market is characterized by the emergence of many insurance companies, a wide range of different types of insurance, additional legal grounds for concluding insurance contracts and paying sums insured and indemnifications. What is known about the essence of the insurance market is that this type of market cannot remain uncontrolled. This control is exercised by the state. Contacts between "buyers" and "sellers" in the insurance market are carried out directly through direct contact or through the mediation of insurance agents or insurance brokers. A necessary condition for the implementation of these contacts is that the "buyer" needs insurance. In this case, potential insured persons collect the necessary information regarding insurance products and insurance companies offering them. Insurable interest develops into insurance demand when the solvency of a person seeking insurance protection from an insurance agent is also available. An insurance product can be defined as an insurance service to meet an insurance need that is offered in the insurance market. For the purposes of this development, it is important to know the specifics of the insurance service.
An insurance service is a special type of service that satisfies specific insurance needs. The insurance service is reduced to the offer by the insurance company of insurance products to the insured.
Realization of insurance services is possible only after the conclusion of insurance contracts. Insurance protection is carried out in advance, since there is a certain period between the moment of payment of the insurance premium (“price” of insurance) and the moment of receipt of insurance compensation for losses or the amount from the insurance agent when the risk is realized. From this follows another feature of the insurance service, which lies in the fact that its duration is longer than that of other services.
The following characteristics of insurance services can be distinguished:
intangibility - an insurance service has no substance, type and form. The intangible nature of the insurance service leads to problems associated with the difficult awareness of the need to conclude this insurance contract. It is for this reason that marketing in the insurance industry is primarily aimed at finding out the benefits of buying a certain insurance, and not just indicating the insurance service itself. To overcome the problems associated with intangibility, insurance companies equate the services they offer with insurance products, but this is not always the case. The material side of insurance services is expressed primarily in documents on pre-contractual information, general and special conditions of the insurance contract, liquidation of losses,
indivisibility(inseparability between the production and consumption of insurance services) - this characteristic stems from the fact that the provision of services is always associated with a person. The implementation of the insurance service requires close contact between the insurer and the insured person. Here, the insurance company puts emphasis on the client relationship between the insured and insurance agents. By concluding a specific insurance contract, the insured seeks a way to meet specific insurance needs. And this, in turn, implies continuous contact between the insured and the insurer;
heterogeneity(dissimilarity) - this characteristic is associated with differences in the provision of the insurance service itself, for example, in the provision of services by different insurance companies under different conditions. In the field of insurance, consumers (insured) evaluate insurance services depending on the idea of insurance that they receive from the insurer, respectively from intermediaries (insurance agents). That is why insurance companies must effectively select, train and motivate insurance and sales specialists;
short duration (perishability) - this feature of the insurance service is associated with the fact that the lost opportunity to use the service at the time of its provision cannot be used in another, future period, i.e. impossible to save it.
The brevity of the insurance service has an impact on the marketing of insurance. This service characteristic enhances the importance of time management for personal selling and balancing between supported insurance services and the level of services in demand. In this direction, insurance companies teach sales insurance agents how to use the time they have effectively; how to contact potential insured persons and how to market insurance products;
unevenness - is uneven demand for insurance services.
This characteristic of the insurance service is manifested especially in relation to the price of insurance. For example, with an increase in the purchasing power of the population, the demand for insurance services increases.
The unevenness of insurance services is also connected with the seasonality of supply and demand. Thus, the offer of "Civil Liability" insurance for owners and drivers of motor vehicles (Bulgarian MPS) is the largest in December. The reason for this is that this insurance is compulsory, annual and calendar year coincides with the insurance year;
financial and economic performance - the insurance service belongs to the group of financial services.
The content of an insurance service is an insurance activity performed by an insurer. With its help, the specific insurance needs of the insured are satisfied under certain insurance conditions. These conditions are contractual obligations when concluding a certain insurance transaction. An insurance transaction is an agreement between two parties (the insured and the insurer) on the exchange of insurance values under certain insurance conditions on the basis of an insurance contract. An insurance exchange is carried out through the transfer of insurance services from the insurer in exchange for something of value (insurance premium from the insured) under certain insurance conditions.