This project attempts to teach marketing concepts as a reliable way to increase sales of insurance services. Despite the fact that the number of insurance companies in Nigeria is increasing, the sector’s expansion is being hampered since the insuring public still has a low level of trust in it, and overall patronage is at an all-time low. Internal issues among executives in an organization obstruct the smooth application of marketing concepts to insurance activities. This is due to the incapacity of various insurance businesses’ management to hire experienced marketers. In light of these and other similar issues confronting the industry, this research was necessary in order for the researcher to propose answers to these issues. This research has been divided into five segments to make it easier to read and comprehend. The researcher used a variety of data collection methods, including substantial use of primary and secondary data, questionnaires, and the survey research method. Chapter one dealt with the study’s background and general introduction, chapter two with the literature review, in which all of the other authors’ work on the subject is reviewed, chapter three with the research methodology and design, in which all of the blue prints for conducting the research are clearly stated, and chapter four with the data presentation and analysis, in which the data generated for the study is presented in tables and percentages for easy comprehension.
BACKGROUND OF THE STUDY
The term “insurance” has been defined by many authors and from various angles, but all of them emphasize one thing: it is a risk pool as well as a risk transfer from one person to another.
Insurance, according to Fagan J.I. (1989), is described as a social derivation of explosive units pooling their individual losses. Insurance enables an individual to substitute a little cost (i.e. premium) for a large but unknown loss (not to exceed the amount of insurance) under a system in which the lucky few who avoid loss help to compensate the unfortunate few who incur loss. The purpose of an insurance contract is to provide indemnity, or recompense, in the event of an injury or loss. There are two types of insurance.
The marketing idea is a business philosophy that claims that the economic and social justification of a customer’s wants at a profitable volume in an integrated corporate operation is the marketing concept. The marketing notion can also be defined as a mindset that recognizes the importance of the customer in all we do in business. Its philosophy holds that there can be no marketing without customers, and that marketing should be focused on meeting those needs.
Three fundamental beliefs underpin the marketing concept:
1. Marketing orientation: The insurance firm should do research to determine the best methods for raising client awareness or orienting them.
2. Achievable sales volume: Your target clients should be able to make a profit.
The following are some of the issues with Nigeria’s insurance services:
Late settlement of genuine claims; low regulatory compliance; lack of new products; delayed premium remittance by intermediaries; inroad of banks into the industry; moral hazards and sharp practices; government policy inconsistency; weak regulatory measures; illegal commissions and rebates; and a negative image of the industry This last issue has resulted in a narrowing of the insurance market.
Given how much has changed between the socio-economic climate of your days in the insurance sector and now – the average Nigerian is more concerned with basic requirements such as food and shelter than with insurance (Man never chop to keep money for insurance). Without even taking into account the widespread general lack of wealth among Nigerians,
While doing research for this article, an insurance expert listed the following as other insurance issues in Nigeria:
– The industries that support the short-term insurance underwriting industry are impacted by the current market conditions (e.g. manufacturers).
– Long-term insurance contracts, which are more profitable, do not exist. The industry is only able to survive on the short-term insurance market (e.g. property insurance; compulsory life insurance; individual and other life insurance). These occur at a time when many people who are only slightly insured refuse to pay their premiums.
– Long-term business (e.g. group life insurance, annuity insurance, investment-related insurance) is a pipe dream for most insurance companies. Who doesn’t know that short-term insurance returns (sometimes influenced by commercial rate inflation) can be rather high?
STATEMENT OF PROBLEM
Despite the fact that the number of insurance businesses in Nigeria is increasing, their growth is being hampered since the insurance sector still has a low degree of trust among the insured, and general patronage is still low. Internal issues among executives in an organization obstruct the smooth application of marketing concepts to insurance activities. This is due to the incapacity of various insurance businesses’ management to hire experienced marketers. Finally, these and other countless issues, both internal and external, continue to obstruct the operations of the insurance industry. Because of the aforementioned issues, this research is required. The goal of the researcher is to discover the issues and then propose a remedy.
1. How relevant is the marketing concept to insurance services in Nigeria?
2. How successful has the implementation of marketing concepts in the insurance industry been in terms of overcoming problems?
3. To what extent can the marketing concept help with insurance marketing in Nigeria?
4. To what extent have the challenges in the use of marketing concepts in the Nigerian insurance business been realized?
OBJECTIVES OF THE STUDY
The purpose of this research is to determine the extent and scope of marketing concepts’ application in the insurance industry.
The study’s specific goals are as follows:
I. To investigate the marketing concept’s applicability in the marketing of insurance services in Nigeria.
ii. To look into the issues that have arisen in the use of marketing concepts in the Nigerian insurance business.
iii. Determine the extent to which the marketing concept has improved insurance marketing in Nigeria.
iv. Make recommendations for organizational improvement based on the study’s findin
STATEMENT OF THE HYPOTHESIS
The following hypotheses were developed in order to conduct in-depth study on the subject:
Ho: The implementation of marketing concepts has had no impact on insurance marketing in Nigeria.
Hi: The introduction of marketing concepts has improved insurance marketing in Nigeria.
Ho: In the area of marketing, the marketing concept cannot be properly implemented in the insurance industry.
HYPOTHESIS 111 HYPOTHESIS 111 HYPOTHESIS
Ho: In Nigeria, the marketing idea has not resulted in increased insurance product sales.
Hi: In Nigeria, the marketing concept has increased the volume of insurance product sales.
STATEMENT OF THE STUDY
Managers and departmental leaders would benefit greatly from this research because it will assist them in applying marketing concepts to their daily operations.
The study is also significant in depicting the difficulties faced by insurance companies in using marketing concepts in their operations. This will be crucial information for newcomers to the profession, as they will aim to avoid those issues.
Furthermore, once information on the application of marketing examines becomes available, the public’s trust in the industry’s operation will be restored. Managers and departmental executives will be able to transfer their focus from the sales idea to the marketing concept as a result of this. It also aids intermediaries, which are independent commercial organizations that directly and indirectly participate in the flow of products and markets.