Creating a successful marketing strategy for the insurance industry

The training and maintenance of an effective sales and marketing force armed with knowledge and techniques of modern insurance marketing encompassing demographic mapping, market segmentation and product differentiation methods are key fundamentals towards achieving effective marketing of insurance products. Kortor Kamara, insurance expert with over 28 years experience in both Sierra Leone and the United States, here explains the way out of insurance apathy in Africa.

Overview

A common perception about insurance in most African countries is that, carriers generally fail to honour policy contracts when insured losses occur, and in most cases resort to fine prints embedded in these insurance contracts to either deny claims or substantially reduce claim payments.

Such is the refrain heard not only among insurance policyholders and customers, but with alarming regularity from the general public, therefore, resulting in adverse and low penetration rate of insurance products and services in most African countries.

Though several factors can be identified as drivers of this perception including the lack of adequate understanding of the insurance contract, its terms and conditions, limitations, coverages, exclusions and deductibles including the legal and regulatory framework in various countries.

The focus of this article is how the role of insurance marketing and sales, including its technological, regulatory and management strategies, can be utilised as an effective educational vehicle in changing not only the above perception but making the claims process more transparent and beneficial to the policyholders.

Insurance marketing

A fundamental principle of insurance marketing dictates that insurance products and policies be marketed and sold primarily on the basis of the need for security and the ability of the insurance product and policy to provide adequate financial security from fortuitous losses. Anything short of these defeats the purpose of insurance contract and makes it a difficult product to sell.

Sales function

To be successful however an insurance producer/agent must develop other skills in addition to the sales skills and these includes – technical expertise in insurance principles and coverages

By: Modestus Anaesoronye