Chapter 11 : GBE (1)

Question 1

What are the 4 different distributions channels

Answer 1

1. Insurance intermediaries
2. Tied agents
3. Own sales force
4. Direct marketing

Question 2

What the are risks to the insurer of not meeting real customer needs when selling products?

Answer 2

1. Persistency risk- high policy withdrawals
2. Reputational damage risk
3. Poor new business volumes