Marketing: Promoting Insurance to the Poor
This note recommends social marketing techniques along with financial education to change the attitude of the target market towards insurance. It states that aggressive sales practice will undermine efforts to cerate an insurance culture among the poor. Microinsurance providers use a combination of four main messages to promote their products, namely, protection, solidarity, positive spin and trust. In order to convert promotions into sales, they use a three-phase process, which includes:
- Raising awareness through branding, public relations and prevention campaigns;
- Educating potential clients about their products, taking into account different target audiences, local culture and taboos;
- Activating the market and getting clients to use the information provided to make a decision to purchase insurance.
The note also highlights the importance of motivating insurance agents and effective after-sales service. Promotion activities must be well-planned, and take into account the specificities of the target market. Finally, marketing needs to be approached holistically and strategically because it can make or break a microinsurance scheme.
