Distribution channels

Question 1

Appointed representatives (tied agents)

Answer 1

These are salespeople who act more independently than a member of a direct salesforce but sell only the products of one insurance company. They enjoy more freedom in how they operate and may employ salespeople themselves to sell the products of the selected company.

Question 2

Bancassurers (Bancassurance)

Answer 2

This term is generally used to describe companies which offer financial services that encompasses both banking and insurance companies. A major objective is to cross sell the products of one operation to the customers of the other.

Question 3

Brokers

Answer 3

One who acts an intermediary between the seller and buyer of a particular insurance contract without being tied to either party.

Question 4

Direct marketing

Answer 4

This is the marketing of products directly to the potential customers with no intermediary or sales person involved. It could be via mail, by advertising in newspapers, by telephone or internet. In all situations, the customer is invited to apply for the product, usually directly to the insurance company.

Question 5

Direct sales force

Answer 5

An insurance company that employs the services of salespeople to sell their products directly to the customer is said to operate a direct salesforce. The sales people may operate on a self-employed basis.

Question 6

Telemarketing

Answer 6

This refers to the marketing of products via the telephone. Usually enquiries are generated by direct marketing with the customer telephoning the advertiser.

The aim is to complete all application procedures over the telephone.