Challenges Affecting Marketing of Insurance Services by Insurance Agencies in Nairobi Kenya

Abstract

The effective marketing effort of organization products increase market share, improve returns in the company’s efforts generally promote growth of insurance company .Insurance marketing is basically just the marketing of insurance products. Insurance agencies emphasize the importance of the customer preferences and priorities. Marketing of insurance services is critical and complex. In the present scenario, insurance agencies are facing the problem of transitioning from a perceived selling activity to a structured strategic marketing activity. Insurance agencies are adopting strategies of marketing approaches to be in a position of making great sales of insurance services as they faced increased competition which are making them register low profits and even losses. The objective of the study was to investigate the challenges affecting marketing of insurance services by insurance agencies in Nairobi, Kenya. The study used a descriptive survey approach in collecting data from the respondents. A questionnaire was used as primary data collection instruments. Descriptive statistics such as means, standard deviation and frequency distribution was used to analyze the data. The study concluded that complex procedures in claims management, failure to adopt information technology strategy affected the marketing of the insurance service and mistrust in insurance relationships between insurance and the customers, lack of innovativeness in insurance product development affected the marketing of insurance services, cost of insurance services and pricing of the insurance policies challenged marketing of insurance services in insurance agency industry. The study concluded that choice of communication channel, lack of reliability, fraudulent claims and high premium insurance brand affected by marketing of insurance services by the insurance agencies , an unattractive building, poor landscaping and poor interior furnishing of insurance agency offices, inaccessibility of the insurance policies greatly affected marketing of insurance services. The study recommends that management in insurance agencies need to employ skillful, knowledgeable and qualified marketing workforces who could effectively market the agency insurance services. The insurance agencies need to adopt effective marketing strategies, select efficiency channel of advertisement and improve on delivery of quality of insurance services as well as advertise aggressively to attract more customers.