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8 Cards in this Set
- Front
- Back
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What are the 2 marketing methods for selling insurance products? |
Direct marketing - sales force from insurer Indirect - sales force is outsourced to an agent |
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What are the advantages of direct insurance? |
Savings are possible (no commission is paid to intermediary) Immediate cover obtained through the telephone/internet |
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What are the disadvantages of direct marketing to the insured? |
Advertising may increase premiums
May only accept standard risks
Only 1 insurers products are on offer
No professional to say what's best |
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What are the advantages of indirect insurance to the insured? |
Independent advice from many intermediaries Services may help recover uninsured losses after claim Prices and cover of different insurers can be compared |
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What are some disadvantages to the insured of indirect insurance? |
May only be able to advise on 1 insurers products
May not be able to access information from direct insurers
Policy change each year so that intermediary can get more commission |
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What is delegated authority? |
Insurers give authority to intermediaries to act in their behalf when placing business as long as new business or changes to policy fall within the define criteria. |
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What is a managing general agent? |
Specialist intermediary who also has authority but also act like an insurer and perform tasks like underwriting and handling claims. |
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Why are managing agents used? |
They are specialists in niche areas |
