f the intangibility of its products and the fact that financial risk is significantly reduced with the expanding market and the increasing database of customers.
The intangibility of the insurance products and the volumes of premiums have significant impact on the performance outcome of insurance companies. They are major issues that require innovative ideas and creative inputs to promote strategies that would be able to attract and retain customers. Indeed, the scholars assert that the financial services are characterized by intangibility; heterogeneity; inseparability; perishability; and high labor intensity (Zeithaml and Bitner 2000). The marketing of insurance products therefore becomes dependent on the way the new idea is projected to the people and information is disseminated amongst the prospects.
Insurance products are mainly sold through agents. They also heavily rely on the external factors like trust in the protection provided and the goodwill of the agents through which the insurance products are sold. The intangibility of the products makes it difficult to judge its quality until it can be experienced and therefore, the marketing strategies need to rely on factors like credibility of the company, price, promotion, segmentation etc. The perishability of service makes it difficult to make forecast. Indeed, the fact that the quality and delivery of the services are closely linked to the human aspects makes it much harder for the insurance firms to convince their targets. Hence the creativity of ideas and dissemination tools become major facilitators of effective market strategy. The leading insurance companies Lloyds, Norwich Union etc. increasingly deploy new strategies like competitive premium, innovative products and differentiation in the product so new customers can be attracted.
While a sales process primarily involves five major steps to commence sales, it is imperative they must be accompanied by clear understanding of behavioural pattern of