Some of the problems that insurance industries face under marketing.

  

Date Posted: 12/4/2012 9:43:45 AM

Posted By: vann  Membership Level: Gold  Total Points: 1015

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i. Marketing cost.
The cost of marketing is very high. Insurance companies are with faced problems in setting funds for marketing activity which is both a functional area of management and a business philosophy. Some of insurance firms only have funds for the day to day operations. This makes them to strain financially for them to allocate some funds for the marketing activity.
ii. Competition and other related institution and competition among the insurance firm.
These leads to the marketing alternatives so as to create awareness of the insurance firm and also the operations that takes place. These insurance firms compete market-wise thus a challenge because most of the insurance firms find it wasting, costly and also a tired activity.
iii. Lack of proper trained sales men and brokers.
In the current era, it''s very hard for the insurance firms to select the perfect sales men to do the marketing activity accordingly and win clients. This then becomes a very hard practice to the insurance industries.
iv. State of the art technology.
Technology is changing day in day out and for the insurance it becomes very difficult for them to choose the correct method of marketing their respective institutions and also all the operations that go on in the insurance firm. Marketing is dynamic, that is, it must respond to the changing trends and cannot therefore be static. It therefore requires action, review as well as planning by the marketing department.
v. Marketing principles.
Principles comprising marketing affect the insurance industry. Some of these principles like marketing led business are concerned with meeting customer needs and wants and obtaining satisfaction not selling to them. Marketing should tell us that business decisions must be made with careful and systematic concentration of all the clients. These principles concentrate mostly with the clients as the consumer rather than the insurance firm which aim is to make or

maximize profits.
vi. Compensation scheme.
In every insurance company, they have to display their compensation scheme to their clients as a way of marketing their institution. It will be a hard task for marketing department to reframe their compensation scheme to be attractive to the clients. In doing so, marketing department has to get the information from the customers.
vii. Government.
The government takes a major role in marketing of insurance since they levy taxes to the department thus making marketing cost increase. Monetary value of a property appreciation of the insured or policy leads to an increase in premium.

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