MARKETING TOOLS ROLE IN THE FORMATION OF MODERN INSURANCE BUSINESS MODELS

Abstract

Introduction. A unique feature of the insurance business is revealed in the fact that the sale of the insurance product precedes its actual execution. Provision of the insurance service is probabilistic in nature, that is, the client receives an insurance payment only if insurance event specified in the insurance contract occurs. Therefore, the need for insurance in most cases is not realized by the potential policyholder, unlike other needs. This can explain the high interest in the use of effective marketing tools, their constant review and evaluation of effectiveness. The purpose. The purpose of the article is to research the realities of using marketing tools and identify its components in the modern practice of the insurance companies functioning, and to formulate on this basis the author's interpretation of the definition of "insurance marketing". Results. The article examines the evolutionary course of the insurance marketing formation in countries with developed economies and highlights the main four stages of its development. Key attributes of modern insurance marketing are determined – insurance products, price, coverage, advertising and sales. It is substantiated that the models construction modernity of insurance companies functioning occurs due to the achievement of a synergistic effect from the use of marketing tools. The components of marketing tools are presented and it is proved that the use of existing and innovative marketing tools determines the construction of further vectors of the company's development. It is emphasized that the set of marketing tools is not stable and evaluating the effectiveness of the used marketing tools is a somewhat difficult task. In order to evaluate the effectiveness of the marketing tools use, a combination of both quantitative and qualitative methods is used. At the same time, it is difficult to clearly divide the methods of assessing the effectiveness of both insurance marketing in general in the activities of the insurer and specific marketing tools. The author's interpretation of the understanding of modern marketing tools is presented. Conclusions. Considering thefacts mentioned above and taking into account modern trends, it is possible to outline a modern marketing toolkit as a set of methods and approaches that an insurance company implements in its activities in order to implement its market activity and ensure the effectiveness of its functioning. At the same time, the marketing toolkit, given its complexity and the great variety of its modifications, is used differently in one or another insurance business model and, in turn, determines such a model.