Marketing Health Insurance

By: EconomyWatch   Date: 25 May 2010

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Marketing health insurance is one of the most difficult jobs in insurance marketing. This is because of the perpetual conflict between the insurance companies which want to make a profit and the insured person who wants to get as much compensation as possible from the insurance company. Commissions for the health companies are very low and they seldom make profits from health insurance.

Marketing Health Insurance: Reasons

In the past, health insurance policies for young children and health people have had low premiums, resulting in little profit. Those who paid high rates of premium were the older people who often got ill, with the result that the health insurance companies had to compensate for that. However, nowadays health insurance premiums are almost the same for a healthy young adult and an old person who just has had a major operation.

Marketing Health Insurance: Advertising and Informing

In order to advertise and market their products, health insurance companies use fliers and banners that inform clients about their range of products. Another strategy in marketing health insurance is to offer free health checks to the insured. It is important that health insurance companies give policyholders, existing or potential, a chance to understand the benefits the insurance company is presenting to them. This makes clients feel comfortable and cared for. If this is done regularly by the company, there are high chances of attracting new customers.

Marketing Health Insurance: A Competitive Field

Marketing health insurance products has invited tough competition as most health insurance companies offer similar types of premiums and facilities. So it has become very important for life insurance companies to focus on health insurance marketing and attract as many people as possible to their company.

Marketing Health Insurance: Know the Target Audience

It is hence mandatory for one to know about the market target and the needs of the customers before proceeding with health insurance marketing.

It is easy to capture the potential insurance holder's attention if the insurance company knows its targets and aims clearly. So, it is important to conduct a survey (of what?) and then aim at attracting people.


Health Insurance Marketing: Strategies

  • A very common strategy of health insurance marketing is making the name of the company familiar to the public by means of television commercials, pamphlets, banners and exciting offers.

  • Telephone marketing is another health insurance marketing strategy. One can employ telephone companies to send messages about various offers. Call centers are also used to inform potential clients of the company’s products.

  • Web insurance marketing is another good strategy to promote insurance policies. The pop ups that one sees while using the Internet are actually a very effective way of sending messages to potential insurance customers.

  • A health insurance company should charge the same rates for any one policy from all clients. By not doing so, policyholders feel they are being treated unfairly and that the health insurance companies are only looking for profits and not interested in customer welfare.

  • When a health insurance claim is filed, especially for a large amount, the health insurance company should help the policyholder with the necessary paperwork. Companies should avoid bureaucracy and instead, facilitate the speedy dispensing of claims. There are companies who avoid doing this in order to frustrate beneficiaries who eventually forsake their claim. Although this generates a short term profit for the company; it hurts the reputation of the company in the long run.

  • Community health insurance marketing is another way to promote and gain recognition for the health insurance company. Eminent employees join local community institutions, such as the Chamber of Commerce, and by signing up there, one can volunteer with various community projects. Such activities help the health insurance company to get free publicity. They also help the health insurance companies to meet people who can be their potential health insurance clients.

  • For effective health insurance marketing, one should pay attention to existing and potential health insurance policy holders. It’s important to listen to what people who actually matter have to say. One common problem that insured people face is that insurance companies do not inform clients regarding a hike in premium rates. It is important to keep customers well informed of such developments. The health insurance company should also maintain as much transparency as possible.

  • The competition in the insurance market is so fierce today that no company wants to lose a customer to another company. While marketing health insurance, people should not ignore their existing policyholders in the race to get new business. Clients who are not contacted for a long period of time normally fail to remain loyal to the insurance company and look for a different health insurance company. It’s therefore wise for the company to maintain records of the client's birthday, anniversaries, etc. and send him/her a small token on a regular basis. If the company can afford it, sending dinner coupons to the policyholder is also a good idea. Such things play a major role and can be considered effective health insurance marketing strategies.

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