Ch 8: Distribution channels

Question 1

Distribution channels available to the insurer

Answer 1

• Insurance intermediaries - select products for clients from all or most of those available on the market
• Tied agents - offerf products of one insurer or small gropup of insurers
• Own salesforce - usually employed by company to sell its products directly to the public
• Direct marketing via press advertising, telephone, internet, mailshots

Question 2

Different forms of commission

Answer 2

• Initial and renewal commission
• Indemnity commission
• Level commission