Factors Critical in Marketing Strategies of Insurance Companies in the United Kingdom

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TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

Introduction1

Background1

Purpose of the study2

Theoretical framework3

Aims and objectives3

Research questions4

Structure of the dissertation4

Chapter 2: Literature Review4

Chapter 3: Methodology4

Chapter 4: Finding and Analysis4

Chapter 5: Conclusion5

CHAPTER 2: LITERAUTRE REVIEW6

Introduction6

Market orientation7

Marketing Concept Development8

Real time marketing10

CHAPTER 3: METHODOLOGY14

Introduction14

Steps for methodology14

Reason for selecting the research method15

Resources15

Research Philosophy16

Approach of the research16

Quantitative Data Analysis17

Limitaitons of the study17

Assumptions of Study18

REFERENCES19

APPENDICES21

Questionnaire21

CHAPTER 1: INTRODUCTION

Introduction

The market for life insurance has begun to change. The consumer has become disenchanted with life insurance as a means of savings. Life insurance companies have been dedicated to the sale of life insurance whole life policies, endowment policies and limited payment life policies, as a means of providing financial security. These contracts have been guaranteed. The fixed dollar benefits are supported in turn, by investments in fixed dollar securities such as bonds which pay a guaranteed rate of interest for a stated whole life insurance. When the insurance is for the whole life of the insured, the insurer undertakes to pay a definite sum whenever death may occur. Because of this, the type of insurance is known as whole life insurance. Whole life insurance can be known as ordinary (or straight life) or limited payment life (Christensen 2008, p.49).

Background

Chayanov (2005) examine the signalling power of dividend increases by insurance companies. They find the fluctuating magnitude of the market reaction to be lower, as a whole, for life insurance companies when compared with that of other insurers or industrial firms, but higher when compared with that of a controlled sample of banks. Historically, insurance companies are not the highest profit margin companies, nor do they tend to be market trend leaders in most industrialized countries. Thus, one outcome of this study determines the "market-oriented focus" of insurance companies (Chayanov 2005, p.48).

It should be noted that when the term, market-oriented focus, is used, it means that the company has a customer and competition focused strategy or set of strategies. Determination of a market-oriented focus has, historically, resulted in greater company profits, longevity, and industry prosperity. Moreover, numerous studies have shown that company inter functional coordination is necessary in a market-oriented approach. The question that remains is whether the British insurance industry, specifically, is practicing a market-oriented focus. Typically, United Kingdom has been an agriculturally dominated society, which does not demand nor dictate a customer focus (Chapman 2010, p.29).

This is due to the fact that most agricultural products are commodities-thus dominated by market forces and not influencing market conditions. It remains to be seen whether an insurance industry market focus would yield or be causally related to a company inter functional cooperation approach. This study attempts to examine that relationship. Moreover, since United Kingdom developed later economically than other Asian countries, this resulted in the British insurance industry avoiding a number of pitfalls experienced by the more industrialized countries that had an earlier market presence in the insurance industry. This is one of many critical reasons for the relatively late development of the British ...