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Insurance Marketing: Creating a marketing strategy for the insurance industry in Sierra Leone

INFORMATION:

A common perception of security in most African countries is that companies generally do not fulfill the contracts occur policy when insured losses, and in many cases the use of prints included in these contracts of insurance or refuse claims or demands to substantially reduce payments. Such is the refrain heard not only among policyholders and customers, but with an alarming regularity in the general public, resulting in low penetration reactions insurance products and services in most African countries.

Although several factors can be easily identified as drivers of this perception, as lack of knowledge sufficient insurance contract, its terms and conditions, limitations, warranties, exclusions and deductibles with legal and regulatory framework in various countries, the objective of this work is the role of marketing and sales of insurance, including technology, policy and management strategies can be used as an effective means of education in changing the perception not only above, but in the claims process more transparent and favorable to the insured.

There is therefore a direct result of insurance marketing, expertise of staff, types of guarantees and policies available and if the request is denied or underpaid in the case of an insured loss.

SIERRA LEONE CASE STUDY:

For decades, the marketing of insurance products and services in Sierra Leone focused primarily on the agency "Direct" method, in which companies earn the wages paid agents or independent contractors commissions on sales of just selling and marketing their products. The marketing of life insurance policies for property and liability, such as fire, marine, accident and their political allies have always been marketed mainly by these agents of the company.

For example, while I worked at the National Insurance Corporation (NIC) from 1981 to 1985, sales of its executive officers the company has been put on the market, sometimes with little or no technical knowledge of the complexity of risk management and insurance products sold only as political guarantees of goods. More often poor job in advising policyholders that their claims are not covered by the terms General Insurance was our responsibility in the claims department. Until then, it was too late to remedy coverage law has not been sold to policyholders by Alternative agents or coordination of policies that could have covered all the gaps in the policy have not been sold or made available to the police. Usually the problems of lack of coverage, adequate coverage against losses, such as denial or underpayment of claims.

The role of sales of these agents have focused the marketing of products or policies of product differentiation, little or no creativity in design and marketing to the contemporary risks facing a country like Sierra Leone, emerging from a civil war a decade and a yearning for creative policies to meet their development aspirations.

For example, the syndrome former insurance Kebbay "is available in Sierra Leone, where a company insurance became so famous in the practice of collecting customers' personal automobile insurance without the payment of claims when accidents occurred at the same time. Such widespread practice on insurance market in Sierra Leone over the years 1970-1990 the most preventable of ugliness in the current market.

Marketing as defined by the American Marketing Association (AMA) is the performance of business activities that direct the movement of goods and services from the producer consumer. Property of the victim and the marketing of liability insurance, however, includes not only sales of the traditional marketing function, but includes services such as customer needs analysis, market segmentation, development and distribution of products to be integrated into an effective marketing mix.

INSURANCE MARKETING:

A fundamental principle of insurance marketing requires insurance products and policies should be marketed and sold primarily on the basis of the need for safety and capacity of insurance policy and provide a financial guarantee appropriate incidental losses. Moreover, the new sources of production of the company includes new ways to sell insurance policies of age and traditional products, concerning the marketing of new services, such as risk management, loss control and loss adjusting services must be made by insurance companies.

However, in some sectors of insurance, government restrictions, laws or regulations to ensure that it is the factor decisive. For example, the purchase automobile liability insurance is required by law in most jurisdictions around the world. Recently argued the proposed requirement a policy of title insurance on real estate transactions in Sierra Leone and a health insurance policy or insurance against domestic workers accidents are examples of such a legal requirement mandatory.

To a large extent have been and continue to the principles and away in the services marketing mix of products insurance in Sierra Leone, which recently caused spectacular failures in the introduction of new products or failure in the market penetration of alternative policies new on the market for various types of insurance. For example, the failure of several insurance companies, including the spectacular failure of the largest insurance company in the country, National Insurance Company (NIC) effectively introduce and market a national health insurance (cate) since 2004 is a case study of a monumental failure of marketing requiring an analysis in a future article.

Commercial function:

To succeed, however, a producer or insurance agent needs to develop other skills in addition to the sales skills to include:

1) The technical competence in the principles of insurance and guarantees, as customers in general, depend on their agents tips on how to choose the combination appropriate insurance products and identification of gaps in coverage.

2) skills in the analysis of consumer needs through techniques risk identification and management of the adaptation of insurance programs are a prerequisite.

The first step in managing the risk of consumer needs is the identification and analysis of risks losing a customer is exposed or subjected to an investigation by insurance. The agent must be able to educate and impact of the risk of losing enough customers and guarantees and other mechanisms for transferring unsafe for the client.

Sales Management

In general, the concept of insurance sales management with active participation and address given by the management of the sales force to ensure the nature and amount of cases desired by the insurance company. This involves determining the direction of:

1) The segments of the market available that can be achieved more effectively by agents of the company.

2) The nature of the product / Policy to be more attractive to specific market segments and more profitable to the insurer.

3) How best to select, train and encourage producers and sales agents to specific market segments.

Market Data Selection geographic, demographic and ensures / or segments industrial market to target in the marketing of insurance products targeting effective and efficient use of resources. demographic groups can still be defined by characteristics such as age, income, occupation and sex.

Using this technique, for example, various insurance coverages, including health, medical, accident, disability and accidents to name a few, could be adapted and offered to segments such as government officials, parliamentarians, teachers, school teachers, health care providers, motorcyclists and farmers around the country. The same could apply to security sector, including policies specifically designed to meet the needs of the military and police.

In addition, through use of differentiation techniques product in their marketing mix, an insurer may maintain and increase market share. These can be done by changing the provisions for standard coverage load a different price contract and offering a different level of competition in services.

TECHNOLOGIES:

With the progressive introduction of computers in the business of insurance in Sierra Leone, new technology will play an important role in coordinating strategies marketing, planning and studies, including new products and services, consumption habits, market potential and sales forecasts. The use of computers for not taking into account only the statistical analysis of insurance marketing through rates and policies and the issuing of visas, but also and should be followed by individual firms.

The establishment of a marketing database of insurance companies separate and apart from the underwriting and claims databases is a step in the right direction in the implementation of the new marketing strategy.

Marketing problems:

The challenge therefore facing the industry local is the need for diversification of insurance products best suited and able to meet the needs and development. Because if the insurance industry can play a very important and essential in the development process of a nation, the challenge it faces is how how our insurance professionals to respond creatively to the introduction insurance policies, marketing tools and techniques as a basis for sustainable economic development of the country.

In the U.S., there are four systems Marketing separate property and liability insurance. These include:

Independent Agency System.

The system of representation exclusive (also known as captive agency system).

Direct writing system.

The system of direct mail.

The system used mainly in the insurance market is Sierra Leone direct writing system in which individual carriers use their agents and employees paid exclusively market policies. However, if the insurance market in Sierra Leone is to survive and grow, as new players and products such as National Insurance and disease the national insurance scheme for their introduction in the market, then the development of a new generation of producers, agents and marketing systems should be conducted to prevent the failure of recent introductions of the new policy. These should include and integrate e-mail direct agency, and systems technology.

For achieve this objective the marketing of a sales force should be recruited and trained in the complexities of insurance companies and introducing policies and marketing with realistic production goals, policies and marketing strategies and implementation of an advertising campaign and promotion.

About the Author

The author, Mr. Kortor Kamara has over 25 years experience in the insurance industry both in Sierra Leone and the United States. He is a Chartered Property & Casualty Insurer and holds the Workers Compensation Claims Professional (WCCP) designation. He is a Member of the Chartered Insurance Institute (London); Certified Self-Insurance Claims Administrator-State of California; Registered World Bank Consultant and has served as a Consultant on various Insurance initiatives in Sierra Leone, including design of the country’s first Title Insurance Policy.

In addition, Mr. Kamara is a graduate of Fourah Bay College, University of Sierra Leone, 1978-1981; studied Law at both the Univerisity of West Los Angeles School of Law and the California Southern School of Law in Riverside. He is currently a Doctoral Candidate in Insurance and Risk Management.

Through association with Saddleback Re, were he serves as the Regional Manager, Africa Division, Mr. Kamara is intimately involved in the provision of reinsurance coverage, policy design, loss control, training and risk management services to the African Insurance marketplace. Mr. Kamara can be contacted at KortorKamara@yahoo.com.
www.saddlebackre.com.

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