Subject :insurance management
1.a)how marketing of insurance products can help insurance companies ?(please answer in detail in points in 200 to 250 words )
b)what type of marketing tools can help insurance companies in achieving their objectives ?(please answer in detail in 200 to 250 words )
2.discuss how Re insurance affects Rate making of a primary insurance company ?(please answer in detail in 200 to 250 words in points)
The concept of marketing entails the activities done by a company to promote and sell both products and services. Insurance entails arrangements done by a company to provide a guarantee of compensation for particular damage, loss, illness, or death in departure for payment of a quantified premium. Marketing of insurance is service-based activities that aim at achieving increased customer services and orientation, and above all the making of profit in an organization. The main aim of marketing is to enable the insurance business to establish, grow and develop business in the best interest of society first and as well as the desire of the insurance organization. Marketing insurance plays manifold functions in the insurance business. On the one hand, it makes product promotion while ensuring security. Furthermore, it raises the awareness of citizens and other customers on models of protection from risks in the lives of people. The process increases reliability to consumers who are both the citizens and other customers. Besides, it guarantees the cost of paying for the promise given by the insurer if a loss occurs will be accomplished. Marketing plays a key role in the insurance market to meet supply and demand needs. For instance, professional or health insurance and other types of insurance products are catered for in any firm. Finally, marketing insurance does contribute to the financial growth and development of companies.
The insurance market exhibits an intense saturation with diverse brands competing for consumer attention. The situation makes it difficult for the insurance firms to retain and attract people utilizing such policies. Notably, insurance provides a platform through which the companies dealing with insurance meet the needed demand for its supply to the market. The concept here is that insurance products are invisible, risky, and intangible. They only occur as forms of pledges from the firm to the consumer. As such, selling a promise would need extra-ordinary confidence. Having said that, two primary marketing tools make it possible for companies to meet their daily objectives as illustrated below. One major tool is social media. It should be noted that social media is a marketing tool that assists in establishing a firm foundational relationship with potential and actual clients. Through such platforms, the insurance businesses maintain a personalized and yet both social and professional platform for selling products, services, and referrals. Secondly, analytics provide a pathway to mining content and analyzing it. The data obtained assists the business in determining its successful rates by the use of ads and SEO. In that process, the company can re-prioritize its resources in the long land. Additionally, they have access to quantified amounts of basic data which helps them in developing marketing strategies that inform at targeting new clients.
Reinsurance is frequently designated as insurance for insurance companies. It’s a way for insurance businesses to transfer some of the monetary risks they assume when delivering insurance policies. There are two rudimentary types of reinsurance arrangements namely facultative and treaty reinsurance. Facultative reinsurance is intended to cover single risks or well-defined packages of risks, whereas treaty reinsurance concealments a conceding corporation’s whole book of business. The reinsurance contracts are agreements enacted between the conceding insurer, and the reinsurer or the assuming insurer. In a normal contract, the reinsurer insures the surrendering insurer for losses under detailed policies written by the yielding insurer to its customers. Therefore, reinsurance enables insurance companies to underwrite more policies, due to portion rates of their liabilities being transferred to reinsurers. The process enables insurance companies to take on more risk while increasing the rate thus affecting the insurance business positively.