Distribution Channel has become a useful component of insurance innovation



Distribution Channel has become a useful component of insurance innovation. The banks have taken the responsibility of insurance-distribution. The Banc assurances have started in India. Its best example is Aviva which has developed link with more than 20 banks. It is spread in 378 town and cities in India.

The two ways flow is seasoned with Banc assurances i.e., Payment of premium of insured too insurers and payment of claims, health, pension, etc. by insurers to the insured's. Potentials of market have increased with the number deposits, consumer loans and housing finances, agricultural and industrial loans.

The wide network of RRBs can be utilised for underwriting. Distribution and servicing the masses. Banc assurances have become cheaper than the agents for underwriting and servicing of insurance. Since banks' branches are available in rural areas, the rural insurance wills extent with the help of banks.

In spite of the growing needs of banc assurances, the personal approaches of agents are helpful to extend insurance business and serve the policyholders in a better manner. The distribution channel is analysed under life insurance, insurance intermediation and non-life insurance agents.

Insurance Intermediation :

With the opening up of the insurance sector, one channel i.e., broker is added as an effective intermediary. They are acting as consultant to the customer and agents of insurance company. Agents are very important for expansion of business, who provide personal services to the clients i.e., the policyholders and the prospects of insurance.

In the competitive atmosphere, the company will survive and grow, who can provide high level of services, back office and front office staff, consumer awareness and prompt and sensitive response to the clients' grievances.

Corporate agent may be allowed to tie up with more than one life or non-life insurer. This facilitates corporate agents to develop professionalism and competitiveness.

Life Insurance :

Life insurance Agents are full of knowledge, compassion and sound people management. Life insurance agent of LIC has been gaining their role as club-members of Branch manager, Club Divisional Manager Club, Zonal Manager Club and Chairman's Club.

The motivation of LIC has gone further to guide the agents become member of Million Dollar Round Table.

Life Underwriters' Guild of India (LUGI) is also guiding the insurance agents to be professional. Life insurance agents quickly engage in their duties and contribute silently although discipline culture is not present there. There is competition amongst the agents to grow themselves higher and higher.