Insurers use a mix of distribution channels according to the type of product, service, and customer segment preferences. These range from websites, apps, and branches to agents, banks, and retailers. How effective are these when it comes to selling microinsurance?
New York, NY (June 16, 2016) – When applied to distribution of microinsurance, these channels take on an extremely important role because this type of insurance normally requires small individual tickets and large volumes to make it profitable. Insurers that execute well can provide high scalability while delivering efficiency.
This report shares insights into the use of distribution channels for microinsurance as well as the challenges that insurers face when creating new channels. It also provides a view of new technologies being applied in some countries to reach the underserved.
“Insurers know that new technologies will reduce the cost and disrupt the way microinsurance is being sold. Social media and e-wallets are examples of these,” says Luis Chipana, an analyst with Celent’s Insurance practice and author of the report. “On the other side, insurers are still investing in the same traditional channels that have proven to be effective in the past, but at a high cost.”
This 18-page report contains four charts and six tables. Click here for the table of contents or to purchase the report from Celent.
Effectiveness of distribution channels — “Microinsurance at a High Cost: An Invitation for Innovation” (Celent)
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies (NYSE: MMC).