Marketing Strategies for Insurer and Effective Countermeasures for Consumer

Research Article
Open access

Marketing Strategies for Insurer and Effective Countermeasures for Consumer

Yang Qu 1*
  • 1 University of Edinburgh    
  • *corresponding author Y.Qu-7@sms.ed.ac.uk
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/38/20231899
AEMPS Vol.38
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-097-4
ISBN (Online): 978-1-83558-098-1

Abstract

In the insurance market, consumers should be rational and avoid buying insurance products that are not suitable for them. Consumers need to be aware of some of the marketing strategies used by insurance companies to enhance the accuracy of their judgement. This paper introduces three theories, representativeness, loss aversion, and framing effect, which are often used by insurance companies in terms of behavioral economic theory and discusses how consumers can avoid becoming victims of market alienation. It then discusses how the insurance market can be optimized from the perspective of consumers, insurers, and government regulators so that consumers can buy the products they really need in a more rational and efficient way. More specifically, for consumers, research and compare insurance products from multiple providers to ensure they are getting the best value for their money would be necessary, consider the actual risk of loss and the potential benefits of insurance coverage when making purchasing decisions, rather than solely focusing on the potential losses.

Keywords:

insurance marketing, representativeness, loss aversion, framing effect

Qu,Y. (2023). Marketing Strategies for Insurer and Effective Countermeasures for Consumer. Advances in Economics, Management and Political Sciences,38,135-140.
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References

[1]. Laury, K., Swarthout, T.J.: Insurance decisions for low-probability losses. Journal of Risk and Uncertainty 39(1), 17-44 (2009).

[2]. Meidan, A.: Marketing Strategies, Organisation and Performance Control in Insurance, The Journal of Risk and Insurance 49(3), 388-404 (1982).

[3]. Richter, A.: Insurance customer behavior: Lessons from behavioral economics. Risk Management Insurance Review 22, 183–205 (2019).

[4]. Kunreuther, H.: Behavioral Econ omics and Insurance: Principles and Solutions, in Schwarcz, D. & Siegelman, P. (Eds.), Research Handbook on the Economics of Insurance Law, 15-35. Edward Elgar Publishing Ltd (2015).

[5]. Wright, P.: Consumer Choice Strategies: Simplifying vs. Optimizing, Journal of Marketing Research 12(1), 60-67 (1975).

[6]. Shi, G.: Customer relationship investment and relationship strength: evidence from insurance industry in China, Journal of Services Marketing 30(2), 201-211 (2016).

[7]. Cvitanović, P. L.: The analysis of digital marketing tactics of selected insurance companies in Croatia. EFZG working paper series 2021(3), (2021).

[8]. Baicker, K.: Health Insurance Coverage and Take-Up: Lessons from Behavioral Economics, The Milbank Quarterly 90(1), No. 1, 107–134 (2012).

[9]. Zelizer, A. V.: Human Values and the Market: The Case of Life Insurance and Death in 19th-Century America, American Journal of Sociology 84(3), 591-610 (1978).

[10]. Eastman, K.L.: The Ethics of Insurance Professionals: Comparison of Personal Versus Professional Ethics, Journal of Business Ethics 15(9), 951-962 (1996).

Cite this article

Qu,Y. (2023). Marketing Strategies for Insurer and Effective Countermeasures for Consumer. Advances in Economics, Management and Political Sciences,38,135-140.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

ISBN：978-1-83558-097-4(Print) / 978-1-83558-098-1(Online)
Editor：Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.38
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Laury, K., Swarthout, T.J.: Insurance decisions for low-probability losses. Journal of Risk and Uncertainty 39(1), 17-44 (2009).

[2]. Meidan, A.: Marketing Strategies, Organisation and Performance Control in Insurance, The Journal of Risk and Insurance 49(3), 388-404 (1982).

[3]. Richter, A.: Insurance customer behavior: Lessons from behavioral economics. Risk Management Insurance Review 22, 183–205 (2019).

[4]. Kunreuther, H.: Behavioral Econ omics and Insurance: Principles and Solutions, in Schwarcz, D. & Siegelman, P. (Eds.), Research Handbook on the Economics of Insurance Law, 15-35. Edward Elgar Publishing Ltd (2015).

[5]. Wright, P.: Consumer Choice Strategies: Simplifying vs. Optimizing, Journal of Marketing Research 12(1), 60-67 (1975).

[6]. Shi, G.: Customer relationship investment and relationship strength: evidence from insurance industry in China, Journal of Services Marketing 30(2), 201-211 (2016).

[7]. Cvitanović, P. L.: The analysis of digital marketing tactics of selected insurance companies in Croatia. EFZG working paper series 2021(3), (2021).

[8]. Baicker, K.: Health Insurance Coverage and Take-Up: Lessons from Behavioral Economics, The Milbank Quarterly 90(1), No. 1, 107–134 (2012).

[9]. Zelizer, A. V.: Human Values and the Market: The Case of Life Insurance and Death in 19th-Century America, American Journal of Sociology 84(3), 591-610 (1978).

[10]. Eastman, K.L.: The Ethics of Insurance Professionals: Comparison of Personal Versus Professional Ethics, Journal of Business Ethics 15(9), 951-962 (1996).

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