Health Insurance Exchange Subsidy Programs - Changing Face Of Distribution

Health Insurance Exchange Subsidy Programs

Life insurance distribution in Asia has long been dominated by the tied-agent model. While we are convinced that this will remain an important channel for the future, we have already seen bancassurance capturing shares of up to 50 percent in some markets. Furthermore, we will continue to see alternative and broker channels grow faster than the market - although from a still very small base.

Revamping The Agency Force

Asian insurers have typically built up large "tied" agency sales forces that rely heavily on relationship-based selling. These agents are often managed in a multilevel marketing, or pyramid, sales-force model. At the bottom of the pyramid are the new agents who have just entered the sales force.