Insurance companies

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Please see response attached.

1. Describe the basic concepts of insurance company operations and marketing.

The organization of insurance companies and the environment in which they operate include operations such as marketing, actuarial, underwriting, and financial activities. Specifically, the essential operations of life insurance companies include identifying target customers, developing and distributing products, underwriting, administering claims, protecting solvency, managing information, and strategic decision making. (1)

Marketing

Kyle (2006) wonders if the definition of marketing has changed, but decides it has not. Rather, what has changed is the business environment. Companies compete with more efficient technologies. Customers have better access to their cost options and they communicate to each other in ways not conceivable in the pre-Internet age. For example, in some industries, the Internet has lowered the cost of entry so that entrepreneurs -- many times from a home office -- have entered the competition. The changes in competitive environment are numerous. What have also changed are marketing strategies and the marketing programs we have available to implement those strategies. (2)

Likewise for insurance marketing, these marketing strategies and the marketing programs have changed, but the basic marketing definition has not. Superior marketing is and always has been analysis, then action. It is strategy development, then logical and thought-out tactical implementation. It is the way to customer satisfaction and increasing profit. (2)

The steps to successful marketing and implementation include:
1) Analyzing your customers and the business environment in order to
2) Identify key opportunities to better and more profitably meet customer needs,
3) Figuring out how to act on those opportunities, and then
4) Implementing your plan.
The process doesn't have to be cumbersome. Five-year plans and novel-length documents are not required. The logic of the action is what is important. Indeed, by applying the basic marketing process, rather than a tactic here and a technique there, your chances of success skyrocket. (2)
Underwriting
When you decide to purchase life insurance you go through a process called "underwriting". How do you define underwriting?

Lifeinsure.com (2006) looks at the orgins of this concept, which are ...