4. Agent and Broker
A successful sales force is the key to success in financial
services industry.
• Agent: An agent is someone who legally represents the
principal and has the authority to act on the principal’s
behalf. An agent has authority to represent the insurer based
on expressed, implied and apparent authority.
• Broker: A broker is someone who legally represents the
insured even though he/she receives a commission from the
insurer.
5. Types of marketing system
• Marketing systems refer to the various methods for
selling and marketing insurance products.
• These methods of selling are also called distribution
systems.
• An efficient distribution system is essential to an insurance
company’s survival.
6. Life Insurance Marketing
• Distribution systems for the sale of life insurance have
changed dramatically over time.
• The major life insurance distribution systems used today are
1. Personal selling systems
2. Financial institution distribution systems
3. Direct response system
4. Other distribution systems
7. Personal selling system
• Personal selling distribution systems, are systems in which
commissioned agents solicit and sell life insurance products
to prospective insureds.
• Career Agents
• Multiple line exclusive agency systems
• Independent Property and Casualty agents
• Personal Producing general Agent
• Brokers
9. Property and Casualty Insurance
Marketing
• Independent Agency Systems
• Exclusive Agency Systems
• Direct Writers
• Direct Response System
• Multiple Distribution Systems
10. BankAssurance
• An agreement between bank and Insurance company form a
partnership so that insurance company can sell it’s products
to bank’s client base.
• Advantage to Bank- Increased revenue.
• Advantage to insurance firm – Gain to large customer base
without additional sales force.
11. Marketing Mix for Insurance Companies
• 7 P’s of Marketing
• Product
• Place
• Promotion
• Price
• People
• Process
• Physical Distribution