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Marketing as a method of managing the activity of insurance companies and the method of research of the insurance services market appeared comparatively recently. Western insurance companies began to widely apply it in the early 60s.
Tasks of marketing in an insurance company essentially follow from its principles: provision of profitable work in constantly changing conditions; provision of company’s competitiveness in order to observe customers’ interests, maintenance of insurer’s public image; fullest satisfaction of customers’ demands regarding the volume, structure, and quality of services rendered by an insurance company, which creates conditions for stable business relations; integrated solution of commercial, organizational and social problems of insurance company staff.
The main task of insurance marketing is to expand the number of customers from among legal entities and individuals, providing them with preferential insurance rates and the introduction of new insurance types.
In accordance with the above tasks, insurance marketing is focused on achieving high quantitative, qualitative and social indicators, such as the number of contracts, profits, etc.
The objectives of insurance marketing are the formation and stimulation of demand, ensuring the validity of management decisions and plans of the insurance company, as well as expanding the volume of services provided, market share, and profits.
Offering to the client what is sold, not trying to impose something else is the basis of the marketing approach in the management of the insurance company.
The experience of applying marketing in the activities of insurance companies shows that the marketing process includes a number of actions that can be reduced to two main functions:
- Formation Of Demand For Insurance Services
- Satisfaction Of Insurance Interests
The first function includes a number of activities to attract the clientele as potential policyholders to the services of this insurance company.
This function is realized through the use of methods and means of influence on potential insurers: advertising, organizational measures on the conclusion of insurance contracts, differentiation of tariffs on insurance services, the combination of insurance services with various forms of trade and legal services.
The second main function of marketing is the satisfaction of insurance interests. The realization of this function is the key to the new demand for insurance services. Insurance companies spend a lot of money to improve the organization of insurance policy sales, improve customer service and maintain the image
The insurance customer service is one of the main components of insurance interest satisfaction, its level influences the demand for insurance services, i.e. the higher the level of service of this insurer, the higher demand for its insurance services.
However, increasing the level of service requires an increase in costs. Therefore, the management of the insurance company must find an optimal balance between the level of service and economic factors related to service with the help of the insurance software development companies.
The task of the insurer’s marketing service is to determine the pattern of correlation between economic factors of service and demand for insurance services. The criterion for the quality of service to the insured is the absence of complaints from them.
The techniques of insurance marketing include: communication with the client, ensuring profitability, the creation of benefits for the client by using the services of the insurance company compared to competitors’ products, the financial interest of employees of the insurance company in the sale of services.
Specifics of marketing in insurance companies determine both the peculiarities of the insurance services market and the specific characteristics of the services themselves.
The peculiarities of the insurance services market are connected with the peculiarities of the services market, which have been described above.
An important distinguishing feature of insurance services is their “momentary” nature. They can not be saved for further sale of provision.
At present, there are several huge numbers of insurance companies operating in Russia, among which there are state insurance institutions – Gosstrakh and Ingosstrakh.
Insurance marketing also involves analysis and evaluation of the geography of insurance risk, political and military expertise, operations to assess the economic and financial activities of the insured.
Another peculiarity of insurance companies is that, unlike commercial banks, they are carriers of long-term capital, and therefore the marketing of insurance companies estimates and is associated with long-term investments.
These include investments in stocks, bonds of the company, the state. Simultaneously with long-term investments, the profitability of various types of securities, such as shares, bonds, and various types of government securities is analyzed.