CRITICAL SUCCESS FACTORS FOR INSURANCE COMPANIES IN THE SOUTH AFRICAN SME MARKETS

Abstract

This study was carried out to determine critical success factors for insurance companies targeting the SME market, for business insurance products. This is expected to benefit both sectors as SMEs require insurance services, especially because of their inherently risky nature. In turn, insurance companies have the potential of increasing their profitability and reducing risk exposure by targeting this growing market, hence creating a virtuous cycle for both industries. The conclusions of this study are drawn from a sample survey of both insurance company managers as well as SMEs operators. The perspectives given by the participants were then contrasted with the emerging literature in this area before drawing very specific conclusions. The research established critical success factors for insurance companies in targeting SMEs as service quality, trust, cost of insurance, effective communication, necessary cover, referral business, the availability of technology and effective sales promotion. In order to build on these critical success factors, insurance companies have to focus on customer satisfaction, relationship marketing, operational excellence, developing well trained employees, leveraging the efficient use of technology, building trust with customers and providing necessary