Relevance of Branding in Insurance Sector

In the changing market scenario, insurance companies have realized the inherent value of brands and consider them valuable assets. Brand equity is the value buildup in a brand due to the positive perception of customers. The value of brand equity is the expected future revenue from the branded product as compare to unbranded product as there is proliferation of brands in the market place; insurance companies try to protect their brand equity by suitable brand differentiation and other means. Brand is a multidimensional construct involving the blending of functional and emotional values to match consumers, performance and psychological needs. One of the goals of branding is to make brand unique on the dimensions that are both relevant and welcomed by customers. Branding is a key function of branding that means much more than just giving the product name. Branding at corporate level is essentially about enhancing and managing the relationship between the insurer and its customer as well as the General public.