MI – 1 (45) So Pyay Aung Win

Marketing for Insurance Services

1. Describe the nature of your organization that you have been working and identify the
key internal and external factors that are important to achieving the organization’s
objectives by using SWOT analysis. You are required to develop S-T Strategies which
identify ways your organization can use its strengths to reduce its vulnerability to
external threats and S-O Strategies which pursue opportunities that are a good fit to the
company's strengths.

Ans:
I am working for the Insurance Company that called is “A” Insurance as an Agency
Department Head. We are focusing on new business that should be with the blue ocean
strategy.

Strength
(i) Strong local presence:
The insurance company has established a strong presence in the Myanmar market with
a network of A Bank branches and agents.
(ii) Wide range of products:
The company offers a wide range of insurance products, including life, health, fire,
marine and motor insurance, to meet the diverse needs of customers.
(iii) Experienced Workforce:
The organization has a skilled and experienced workforce with in-depth knowledge of
the local insurance industry.
(iv) Customer services:
The company has built a good for relation with customer and prompt handling of
complaints.

Weaknesses
(i) Limited technology integration:
The company's adoption of modern technologies for operations and customer service is
relatively low by global standards.
(ii) Regulatory compliance challenges:
The complex and evolving regulatory landscape in Myanmar poses challenges in terms
of compliance and adaptation to changes.
(iii) Limited market knowledge:
Some potential customers in remote areas may not be aware of insurance and its
benefits, which limits market penetration.

Opportunities
(i) Economic growth:
Myanmar's growing economy offers an opportunity to increase disposable income,
leading to increased demand for insurance products.
 (ii) Untapped rural market:
Has the potential to expand into underserved rural areas, educate customers about
insurance and provide coverage tailored to local needs.
(iii) Digital transformation:
The adoption of technology can improve the customer experience, streamline
operations, and improve access to insurance services.

Threats
(i) Competition:
Growing interest from foreign insurers and domestic competition could put pressure on
market share and pricing.
(ii) Economic volatility:
An economic downturn could lead to a decrease in consumer spending on insurance,
affecting premium income.

S - T strategy:
(i) Local expertise for regulatory changes:
Leverage an experienced workforce's knowledge of local regulations to quickly adapt to
any regulatory changes and maintain compliance.
(ii) Improved technology integration:
Invest in technology to improve customer service, claims handling and improve
operational efficiency.
(iii) Building customer relationships:
Use the strong beliefs of existing customers to provide privileges and loyalty programs
that create a barrier against potential customer.

S - O Strategy:
(i) Expanding rural market with diversified products:
Use an established network to penetrate untapped rural markets with tailored
insurance products, leveraging the power of a diversified portfolio.
(ii) Products designed specifically for economic growth:
Develop insurance products that meet specific needs arising from the country's
economic growth, such as insurance for emerging industries or investment
opportunities.
(iii) Digital awareness and education:
Use technology to run digital marketing campaigns to raise awareness of insurance
benefits, addressing lack of market awareness in certain regions.

2.
(a)
Group Life Health Special Travel Student Life

450

THOUSANDS 400

350

300

250

200

150

100

50

-
2013 2015 2017 2019 2021

(b)
Group Life Insurance:
Product:
Tailor coverage options for different organizations' needs. Offer accidental
death, disability coverage.
Price:
Provide competitive premiums based on group size and coverage plus
incentives.
Place:
Collaborate with businesses through partnerships and brokers. Leverage
industry associations to promote benefits.
Promotion:
Conduct seminars for HR managers. Create content showcasing employee
well-being benefits.

Student Life Insurance:

Product: Offer affordable policies for medical and accident coverage.
Flexibility to adapt to changing student needs.
Price: Set competitive premiums within budget.
Place: Partner with educational institutions. Utilize online platforms and
mobile apps.
 Promotion:
Engage students on social media. Provide interactive educational content.

3. "Pure premium is only one factor to be considered in setting an appropriate premium

customers pay for the policy". As you have been working at an insurance company as a
manager, you are responsible to discuss the validity of this statement in the context of
insurance product that your company has been offering.

Ans:
Validity of the statement - "Pure premium is only one factor in establishing the
appropriate premium":

Pure premium (cost base) is important but not enough.

(i) Risk assessment:
Client's risk profile "age, health condition, claim history" affect insurance premiums.
(ii) Operational Cost:
Administration, claims handling and underwriting costs must be covered.
(iii) Profit considerations:
Ensure the sustainability and development of the company.
(iv) Economic factors:
Inflation, interest rates affect investment returns, affect prices.
(v) Customize cover:
Adapt to customer preferences, coverage limits, and deductibles.
(vi) Loss history:
Past claims experience guides future premium adjustments.
(vii) Geographical factors:
Location-related risks (natural disasters, crime) have an impact on premiums. In
summary, setting a fair and appropriate premium involves a comprehensive assessment
of various factors beyond the pure premium, ensuring a balanced, value-driven pricing
strategy.

4. You are a Marketing Director for an insurance company, currently experiencing

declining numbers of customers. You have been in your position for 12 months and you
realize that the company is product oriented. In an effort to communicate the concept
of marketing orientation you feel that you must write a report to the Chairman of the
company detailing the following:

(a) Product Orientation vs Market Orientation:

Product Orientation:
This approach focuses on the production and optimization of products or services based
on internal capabilities and expertise. It assumes that customers will naturally prefer
well-made products that focus on functionality, quality, and innovation. The marketing
strategy here mainly focuses on production efficiency and differentiation by product
attributes.

Market orientation:
On the other hand, this approach is customer centric. This involves a deep
understanding of customer needs, preferences, and behaviors. The company's strategy
revolves around customizing its products, services, and marketing efforts to match the
desires of its customers. Market orientation emphasizes ongoing engagement with
clients to tailor services based on changing market feedback and trends.

(b) Steps to Establish a Marketing Orientation Approach:

Finding customers:
Conduct in-depth market research to understand customer needs, preferences, and
weaknesses.
Customer segment:
Dividing our customer base into segments based on common characteristics, allowing us
to effectively target specific groups.
Competitive analysis:
Analyze your competitors' offerings, strengths and weaknesses to identify
differentiating opportunities.
Customer commitment:
Establish continuous channels of communication with customers through surveys,
feedback mechanisms, and focus groups. Product adaptation:
Modify existing products or develop new products based on identified customer
requirements.
Personalized Marketing:
Create marketing campaigns tailored to specific customer segments, showing how our
services meet their unique needs.

(c) Expected benefits of marketing orientation:

Customer satisfaction:
By putting our customers' needs first, we improve customer satisfaction, which
improves customer loyalty and retention.
Competitive advantage:
Tailoring products to our customers' preferences gives us a competitive edge and sets us
apart in the marketplace.
Long term growth:
 Our customer-centric approach drives sustainable growth as we evolve our services in
line with changing market conditions.
Innovation:
Close engagement with our customers inspires innovation, allowing us to anticipate
emerging trends and stay one step ahead.
Improved reputation:
Our focus on customer satisfaction enhances our brand reputation and positive word of
mouth.

5. According to Google’s Consumer Barometer, an interactive digital consumer insights

tool, some 65 percent of Myanmar under-30s go online using either smartphones or
tablets. The 2022 data suggests that 75 percent of Myanmar residents prefer mobile
devices compared to traditional desktops. In Myanmar, over 50 percent of smartphone
owners prefer to carry out tasks, including product searches and purchases, using their
smartphones.

Ans:
Social media marketing:
With the popularity of social media platforms like Facebook in Myanmar, insurance
companies are likely to leverage these platforms for marketing. They can create engaging
content, share informative posts about insurance products and benefits, and run targeted
advertising campaigns to reach their target audience.
Mobile Marketing:
With a large percentage of the population accessing the internet through mobile devices,
insurance companies will likely focus on mobile marketing. This could involve sending SMS
notifications, developing mobile apps for policy management, and optimizing the site for
mobile users.
Email Marketing:
Sending targeted emails to customers and potential leads can keep them informed about
policy updates, renewals, and other relevant information.
Online Advertising:
Display ads, banners, and video ads on relevant websites and platforms can help insurance
companies increase brand visibility and attract potential customers.