Insurance Market Activities

• The insurance market is made up of insurance companies or providers that sell insurance policies to individuals and businesses that want to manage financial risks. Business Dictionary defines insurance as a "risk-transfer mechanism" in which insured policyholders pay premium costs to an insurer that takes on the risk of payment on events covered within the insurance policy, or contract.

Sales

• A primary function of sales professionals in the insurance industry is the actual sale of insurance protection policies to businesses and individuals. In its look at "Insurance Sales Agents" jobs, the Bureau of Labor Statistics (BLS) indicates that most people obtain their first insurance policy from an insurance salesperson. Insurance sales agents "sell one or more types of insurance, such as property and casualty, life, health, disability, and long-term care," according to the BLS. It is the responsibility of the insurance agent to persuade the consumer or business prospect that the benefits guaranty, services and support offered by the insurer are valuable enough to justify the premium expense expected.

Financial Planning

• The BLS notes that more insurance sales agents are taking on a broader role in offering clients "comprehensive financial planning services." This illustrates some merging between traditional financial services (financial planning, money management, investing) and traditional insurance business. Retirement and estate planning and pension plan set up for business are among advising roles insurance agents are delving into. When insurance agents sell other non-insurance products and services, it is known as cross-selling or what the BLS calls "total account development" with a client.

Claims Service

• Selling is the starting point for relationships in the insurance market. Effective service and support following the sale are equally important market activities for insurance companies that intend to stay in business for the long-term. Insurance companies, like other businesses, rely on customer retention and long-term relationships. Salespeople want renewal commissions on policies, and insurance providers want ongoing revenue from customers. A major component of servicing an insurance policy is claims service and support.