Exploring Consumer Opportunism Conundrum in the Insurance Industry: The Role of Marketing

Drawing from the extant literature, this paper explores the prevalent consumer opportunism in the insurance transactions, its links to consumers’ perception, and the relevance of marketing strategies in curbing the menace. It shows that insurance opportunism could be perpetrated by any party in the insurance transaction system and at any stage of the process involved. Among factors identified as prompting this conundrum are economic motive, resentment towards the insurance companies, laxity in the application processing/asymmetric information, and insiders’ collaborations. Nonetheless, the paper suggests that strong commitment of insurance marketers to creating and delivering value to the customers more robustly through a proactive and all-embracing implementation of marketing strategies vis-àvis relationship marketing could significantly enhance consumers’ positive perception of insurance business and consequently result in a healthier insurance industry.

Trends in Crime

There appears to be a paradox in crime figures according to two reports issued recently by the Home Office in April 2015. The recent crime figures released by the Office for National Statistics (ONS) show a rise in crime in the UK triggered by a rise in violent crime while the figures released by the the Crime Survey of England and Wales (CSEW) (which is based on interviews with members of the public about their experiences of crime) estimated a 7 per cent fall in overall crime to 6.9 million incidents last year. The CSEW, which questions 35,000 people in England and Wales, estimates that crime is now at its lowest level since the study began in 1981.So why have we seen this apparent discrepancy in figures? In reality the ONS figures reflect new reporting practices by the Police and it stated it could no longer approve figures recorded by the police because they were unreliable, prompting major revisions of how each force handles its figures. The renewed focus on the quality of crime recording is thought to have led to improved compliance with national recording standards, leading to proportionally more crimes reported to the police being recorded by them. Improved compliance with recording standards is thought to have particularly affected the way the police recorded crime categories of violence against the person (up 21%) and public order offences (up 14%). These rises were largely off-set by falls in the number of recorded theft offences (down 5%). In contrast to the CSEW, there was a 2% increase in police recorded crime compared with the previous year, with 3.8 million offences recorded in the year ending December 2014 (see Figure 1)