What are the different elements of insurance marketing? 

What is Insurance Marketing? 

Insurance marketing is referred to as the marketing of insurance services with an intention of customer orientation and profit generation. Insurance marketing mainly focusses on the formulation of an ideal mix for the insurance business to keep the insurance organizations surviving in the right perspective. 

The marketing concept in the insurance business is concerned with the expansion of the insurance business for the insurance organization. There are some insurances like vehicle insurance, where a lot of physical intervention is required. Right from insurance purchase to claim of the insurance, the insurer has to be physically present on the site to complete the process. This tends to take up a lot of time as the insurance company has to gauge the extent of damages, cost of repair, etc. 

With increasing competition in every industry, services like free inspection have grabbed the customer’s attention more. Even though it gives your company a competitive advantage but at the same time it considerably increases the cost. 

The best solution to make this process hassle-free and time-saving is by leveraging the technology of CPaaS. 

CPaaS is a cloud-based communications platform that helps your developers to easily incorporate real-time communications into your existing systems. CPaaS comes with open and programmable SDKs and APIs to ensure ease of use. The most prominent feature required in the insurance industry is provided by CPaaS – i.e, video calling capability that helps you let you see “See what I experience” with the customer. 

But, before we understand about CPaaS there are few elements to be considered in the insurance industry such as- 

1. Scheme:  

The first element of insurance marketing is “Scheme” which in layman’s language is known as product. Managing the product component involves product planning and development. Any insurance marketer must have to define their market in terms of product function. Any insurance product is designed in such a way that considers the basic requisites of the customer’s needs. 

2. Premium: 

The second important element of insurance marketing is premium or price which impacts the volume of the sales. Premium is the valuation placed upon the product purchased by the insurer. 

3. Place: 

Marketing channel policy is another integral part of insurance marketing. Place or physical distribution is the distribution of insurance to the insurer at the right time at the right place. In the case of insurance, it is the combination of many micro-decisions such as channels of distribution, agents, development offices, corporate agencies, banks assurance, etc. 

4. Promotion: 

The insurance marketers must inform the customers about their products and persuade them to buy. It covers the methods of communicating with customers through different modes of communication such as personal selling, social media, public relations, exhibition, demonstration used in promotion, etc. All these activities performed by insurance marketers increase the volume of sales by expanding as well as retaining the customer base for the insurance products.