Distribution channels must adapt to survive

In the 1960s, most life insurance production came from career general agents. Today, new players include independent financial planners, stockbrokers, personal producing general agents, and financial institutions. Accordingly, most life insurance companies have developed multi-channel distribution s...

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Veröffentlicht in:Best's review (Life-health insurance ed.) 1994-01, Vol.94 (9), p.54
1. Verfasser: Chandler, Michael L
Format: Artikel
Sprache:eng
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Zusammenfassung:In the 1960s, most life insurance production came from career general agents. Today, new players include independent financial planners, stockbrokers, personal producing general agents, and financial institutions. Accordingly, most life insurance companies have developed multi-channel distribution systems. Prudential's partnership with Citibank and its formation of a new alternative-based marketing unit is a recent example supporting this trend. The incentives for using alternative channels include lower distribution costs, variable rather than fixed expenses, lower front-end commission costs, consumer and demographic trends favoring investment-related products, and increased competitiveness.
ISSN:0005-9706