Types of Insurers
and Marketing
Systems
Agenda
Overview of Private Insurance in the
Financial Services Industry
Types of Private Insurers
Agents and Brokers
Types of Marketing Systems
Group Insurance Marketing
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Convergence
Existing financial institutions now sell a wide variety
of financial products that earlier were outside their
core business area
Copyright 2008 Pearson Addison-Wesley. All rights reserved.
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Stock insurers
Mutual insurers
Reciprocal exchanges
Lloyds of London
Blue Cross and Blue Shield Plans
Health maintenance organizations (HMOs)
Other types of private insurers
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Managerial system
Branch offices are established in various areas
The branch manager is responsible for hiring and training new agents, and
receives a commission from the insurer
Insurer pays expenses of the branch office
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Marketing Systems
in Property and Liability Insurance
The independent agency is a business firm that usually
represents several unrelated insurers
Agents are paid a commission based on the amount of business
produced, which vary by the line of insurance
Agency owns the expirations or renewal rights to the business
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Marketing Systems
in Property and Liability Insurance
A direct writer is an insurer in which the salesperson is an
employee of the insurer, not an independent contractor.
Employees are usually compensated on a salary plus
arrangement
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