Retail sales of insurance products
The organization of retail sales of the insurer involves the development of an organizational sales structure, which is based on the choice of channels and sales technologies, as well as the construction of a sales promotion system. Organizational structure of sales, thus, is an interrelated set of departments and management bodies that ensure the sale of insurance products.
The main types of organizational structures of retail sales of insurance companies are: product, customer, channel and mixed. Let's consider them in more detail.
The product structure is built around the types of insurance that the insurer offers. In the structure there are specialized in terms of insurance departments and sales networks (Figure 1.5).
Each sales specialist is responsible for selling a separate type of insurance. Thus, the work of the manager is evaluated by the result of the trade in the product for which he is responsible. However, this structure of the sales department implies significant costs for maintaining a large number of employees. The functions of the product manager are: good knowledge of insurance products; analysis and forecast of the market by type of insurance; planning and monitoring the implementation of the plan for sales of insurance products; management and control of product creation; planning and control of the implementation of the plan for loss-making of insurance products, etc.
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Fig. 1.5. Product Organizational Sales Structure
The client structure is built around different categories of policyholders. There are various opportunities for segmenting customers and organizing sales departments. For example, an insurer can divide customers into categories A, B, C, where A is the key customers that give the main sales volume, B - medium, and C - all the rest. Thus, the allocation of customers, providing the company with the largest sales volume and being the key ones, is achieved. One of the options for building a client structure is the division of clients into new (prospective) and existing (current) ones. On this basis, two departments are created, one of them is looking for clients, and the other is servicing.
Another way - the organization of departments of corporate and retail sales (Figure 1.6). In this type of client organizational structure, sellers perform only one function - sales. At the same time underwriting, registration of insurance contracts and settlement of losses are carried out by the employees of the middle office.
The construction of the channel structure is based on how the insurance company sells its products, i.e. which sales channels it uses (Figure 1.7). This sales system allows the insurer to sell many types of insurance services and improve the stability of the company's sales system. At the same time, the complexity may be that the insurance company will have to create different products for different distribution channels.
Fig. 1.6. Customer Sales Organizational Structure
Fig. 1.7. Channel Organizational Sales Structure
Each of the structures examined has its advantages and disadvantages. That's why often insurance companies build a mixed structure, which contains elements of client, product, channel and other structures. For example, Fig. 1.6 contains the signs of client and geographical structure, and Fig. 1.7 shows a mixed structure that combines channel, geographic and client features. By the way, the division of the marketing system by geographical feature is useful for companies that sell insurance policies in large volumes in different regions, which imposes certain requirements on the corresponding insurance products. In different regions, the needs and demand for services, the requirements for the very process of sale, the features of escorting contracts can be distinguished. The insurer must take this into account. If the company has a large number of insurance products and organizes sales of products in different regions and countries, it is advisable to build a matrix structure of the sales department, where market managers perform the duties of marketers, and managers on product - sellers.
Thus, the principle of specialization - geography, product, market, sales channel and their combination - in each insurance company can be its own. The main thing is a competent choice of key elements when building a sales structure.
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