Distribution Channels

Discussion in 'SP2' started by Helloall, Feb 4, 2022.

  1. Helloall

    Helloall Very Active Member

    I was doing Sept 2007 and cant understand one of the questions.

    Question 3(ii)

    Direct sales force. These are employees of an insurance company. Do they sit in offices or walk around door to door to people? I had assumed they could be making telephone calls, however the solution makes the distinction that telephone sales are the only channel that uses phones? Is this correct? Pretty sure the insurance company I work for has a floor of tele sales people.

    If direct sales force can use telephones what is the difference between them and telephone sales? Do direct sales force offer more advice?

    How do insurance intermediaries work? Do they telephone call or meet in person? Same with tied agents?

    Also is any of this referenced in the notes? I couldnt find. How would you know this?
     
  2. Mark Willder

    Mark Willder ActEd Tutor Staff Member

    Hi

    Distribution channels are covered in Chapter 8. There are four channels: intermediaries, tied agents, own salesforce, and direct marketing.

    The telesales staff that you mention in your company are part of direct marketing as covered in Section 2.4.

    Direct sales force is an alternative name for own salesforce. They would usually visit potential policyholders in their home.

    Usually intermediaries have an office on the high street and potential policyholders will meet them there. Tied agents are often banks, so they would speak to their customers in the bank branch.

    Best wishes

    Mark
     

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