Singaporean Life Insurance Market Analysis
Competitive Positioning Strategy
In the past years, the Singaporean life insurance market has been the exciting one. For example, banks and new entrants have been largely partnering with life insurance companies. This has contributed to the notable growth of the insurance business such Prudential Company in the country. Findings indicate that the increasing demand for the life insurance services in Singapore market increased industry performance by 14 percent in 2016 (Wee 2016). This increment was accompanied by $3 billion growth in premiums. However, the smooth growth of the market is faced with a broad range of challenges such as technological disruptions, changing risk dynamics, increasing competition, and geographical aspects (Mordor Intelligence 2017). THIS IS A SAMPLE ORDER YOUR PAPER NOW
The Prudential life insurance Company faces stiff competition exhibited by the players within the industry. For example, companies such as The DBS-Manulife partnership, Standard Chartered Bank, Citibank, Etiqa Insurance and Maybank companies have exhibited fierce competition that has forced other insurance companies such as Standard life insurance, and Zurich life insurance companies to exit the market. However, the outstanding products and services of Prudential Company have enabled it to withstand all the turbulences of competition, and it has continued to maintain its market share.
Prudential Life Insurance company offer several insurance plans that comprise of PRUlife multiplier, PRUlife limited pay, and PRUlife. The variety of the products enables the company to continue its dominance in the market.
|v Strong financial position and brand name.
v Many employees
v Variety of products and services
|v Regulatory and legal issues.
v Highly employee turnover
|v Can expand to other countries in South East Asia.
v Emerging new markets.
v Diversifying products to attract more customers.
|v Changing Singapore government regulations.
v Stiff competition.
v Increasing insurance frauds.
ANALYSIS OF SERVICE PRICING STRATEGIES
Service marketing strategies can be based on cost, competitive, and value pricing policies (Tsiotsou 2012). Similarly, Prudential Life insurance company in Singapore has applied all the above three strategies in the pricing of its services.
Cost plus pricing strategy: Just like any other business that is operating to realize profit, Prudential Life Insurance Company sets its prices above the costs incurred in providing the service. This technique includes taking into consideration variable cost, fixed cost and overhead cost before setting the price for the service (Yousafzai 2012).
Competitive pricing strategy: As discussed earlier in this paper, Prudential Life Insurance Company operate in an environment that is full of stiff competition. This has forced the company to adapt to competitive pricing. Competitive pricing neither focuses on customers or cost. Instead, it entails analyzing the pricing strategies of all the competitors and determine the price at which the company will set for its services (Pinar, et al. 2016). Similarly, Prudential Company has applied this approach whereby it sets the prices that either slightly above or lower than the major competitors’ price. Its major competitors comprise of The DBS-Manulife partnership, Standard Chartered Bank, Citibank, Etiqa Insurance and Maybank insurance companies.
Value-based pricing: Value based pricing puts emphasis on two major issues. First, will the customers be able to pay? Secondly, will the customer pay for the services or products? This is based on what the customer is willing to pay apart from how much it costs to provide the service. Prudential Life Insurance Company uses value based pricing on its PRUlife plan. This insurance plan provides both functional and sacrifices value to the customers. The company influences the customers to purchase this product by enlightening them on the importance of life insurance (Prudential Financial, Inc. 2016). On the other hand, the customer’s values this product because upon dying, the life insurance company will compensate their beneficiaries and dependents. THIS IS A SAMPLE ORDER YOUR PAPER NOW
Mordor Intelligence. Life & Non-Life Insurance Market in Singapore – Trends, Industry Competitiveness, and Forecasts to 2022. March 2, 2017. https://www.mordorintelligence.com/industry-reports/life-non-life-insurance-market-in-singapore (accessed June 22, 2017).
Pinar, Musa , Coleen Wilder, Abdel Monim Shaltoni, and James M Stück. “Effects of Gender, Occupational Stereotyping, and Culture on Perceived Service Quality in Anglo-Saxon and Middle Eastern Cultures.” Journal of Professional Services Marketing 37, no. 2 (2016): 74-87.
Prudential Financial, Inc. Be In the Know About Life Insurance Pricing: The Cost of Life Insurance. June 4, 2016. https://www.prudential.com/personal/life-insurance/life-insurance-101/cost-life-insurance (accessed June 22, 2017).
Tsiotsou, Rodoula. “Developing a scale for measuring the personality of sport.” Journal of Services Marketing 26, no. 4 (2012): 238 – 252.
Wee, Cherylene. Singapore Insurance Market – Boom or Bubble about to Burst? December 2, 2016. http://www.morganmckinley.com.sg/article/singapore-insurance-market-boom-or-bubble-about-burst (accessed June 22, 2017).