Chapter 5 Marketing and the role of intermediaries and insurers Flashcards
What are the two main types of distribution channels?
Direct
Independent intermediaries
Identify 9 advantages of an insurers selling direct
Control Increased business volume Ability to cross sell Profiling of data Ownership of customer Differentiation Training and quality Expertise Control of business levels
Identify six disadvantages of a direct marketing approach
Potential over selling Lack of choice Expertise Costs Lack of competitive challenge Infrastructure costs
What is worksite marketing?
Where insurers promote their products directly to employees
Via intranet. Individual meetings. group meetings
workshops and financial clinics
Why is social media a growing method of customer communication
Reinforces brand
Allows unhappy customers to vent
How are brokers remunerated
By commission initial higher thenlower on renewal
How are IFAs involved in PMI
Independent financial advisers sell PMI along side investment products eg life insurance and pensions
What do employee benefits consultants do?
Advise companies on group schemes remunerated by fee or commission
Range of services including claims monitoring,product design, negotiation with insurers, thirdparty administration, third party services,negotiations with hospitals, administration andpayroll systems
What are seven advantages of intermediated sales
Impartial advice
Unbiased full market review
Consultative rather than price driven approach
Analytical advice
Value added services
Lower acquisition costs
Intermediary sales accurate barometer o fcompetitive ness of insurer product
What are seven disadvantages of intermediated sales
Focus on company paid SME or large corporatemarkets
Some of propagated churning
Inappropriate advice as no formal or industrystandard qualification
Consolidation has reduced no. of intermediaries
Who is the AMII
Association of Medical Insurers and Intermediaries (AMII)
Identify three purposes of a fact find
Gather underwriting information
Determine customer’s demands and needs
Assist with risk assessment
Four aspects covered under individual fact find
Personal details
Existing insurance
Personal healthcare requirements
Existing medical conditions
Five aspects cover under a corporate fact find
Company profile Current scheme profile Claims profile Benefit requirements Proposed membership
Identify three responsibilities of the PMI provider
Ensure cover and terms are precise
Provide treatment meets customer expectations
Control premium costs by controlling claims costs
