What is life insurance and life insurance company

What is life insurance and life insurance companyJohn Hancock Mutual Life Insurance Co., founded in 1862, is the seventh largest life insurance firm in the United States with $46 billion in assets under management as of December 31, 1987.

The firm’s 17 subsidiaries manage 35% of those assets, providing a broad range of financial services, including mutual funds, real estate financing, investment banking services, consumer banking, home mortgage lending, property-casualty insurance, money management services, investment and pension products, capital equipment leasing, venture capital and timber investment.

John Hancock’s goal is to provide the best customer service in the financial services industry. The company’s “Real life, real answers” advertising campaign, which has captured every major award in the ad industry, reflects this consumer orientation.

The company has more than 4.6 million individual life insurance policyholders. In addition to its retail business, Hancock offers group life and health insurance, including a variety of cost containment services, to corporate clients. Its International Group Program is the leading international employee benefit program provider in the world.

Headquartered in Boston, John Hancock has 10,226 sales representatives in 300 sales offices throughout the United States. The company has subsidiary offices in Canada. England. Hong Kong. Belgium and the Netherlands, an affiliated company in Indonesia, and a total employee population of 21.287.

Hancock made a major resource commitment to market research. Joan Melanson, a director in the company’s Financial Services Marketing Division elaborates. “We did everything from qualitative focus groups to quantitative telephone and mail surveys. We also bought a lot of syndicated research including the Stanford Research Institute’s data base.”

The firm’s research revealed a national group of consumers that Hancock wanted to do business with: individuals between the ages of 21 and 65, with household incomes from $20,000 to $75,000. These were people who liked the idea of getting more than one product from a company and who valued the advice and guidance gained through a continuing relationship with a company representative.

These customer needs played right into Hancock’s greatest strength — its team of 10,226 marketing representatives. “We learned that just creating a lot of products is not going to differentiate us.” explains Melanson. “Building relationships will.”

Other features of Hancock’s target consumer group came to light as a result of the firm’s research efforts. A financially unsophisticated group as a whole, these individuals were looking for simplified answers to financial concerns, not just products.

The company acted on its research and developed the award-winning advertising campaign, “Real life, real answers,” a series of unique snapshots of actual life events combined with Hancock’s suggested financial solutions. The $7-million television and print campaign increased awareness of Hancock as a full-service financial institution with an understanding of today’s financial problems and an offering of customized solutions. (The details of Hancock’s promotion are outlined in chapter 4.)

Necessity is often the mother of invention. Main firms, faced with an internal dilemma, have reached out to find a target group of consumers that could solve their problem. One such example is highlighted next.

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