The idea of Direct Insurance is out of a discrepancy that the development of industry in the wake of it becoming too bloated with intermediaries. If we can and, indeed, was and still is, strongly argued that brokers serve a purpose to guide clients through what can be an intimidating process to understand how insurance policies work, how to supply, and how to identify the most advantageous ways of insurance, all this must be paid for, usually in the form of commissions to brokers – which obviously are financed by premiums rose slightly. Thus was born the idea that if brokers are ignored, the self-insurance should be cheaper.
In an ideal situation that you intend to use direct mail to market your insurance or investment business your success starts with the people who will receive your messages you’d develop your own highly targeted mailing list. If you rent a mailing list rather than renting a list based on something generic like zip codes only rent a list that allows you to add other variables into your list selection. This helps you increase your success with that rented list. You’ll pay more for the more targeted rented list, but that list has a far greater likelihood of generating the revenue to pay for the list than a generic list ever could. The direct mail campaigns you get from the insurance company can produce results if you send out thousands and commit to repeatedly mailing to your list over time. The insurance carriers care about selling one of their products not building your business. They don’t care if a policy holder buys a policy from you or another agent and that’s why their marketing pieces focus on a product. The person receiving your direct mail piece could easily take your marketing piece in hand to their existing agent or any other agent and buy that product from them not you. The insurance provider has thousands of agents they can sell those marketing campaigns to, but only if those pieces can work for anyone.
Insurers
Direct Insurers are car insurance companies that have realized they can save money by cutting out the ‘middle man.’ By dealing directly with the client, instead of paying a broker or intermediary, they are able to cut back on costs and therefore offer lower premiums. By advertising their services via billboards, television, radio, print media and the like, the publics’ interest is piqued. The Direct Insurer will then have a call centre where a potential client can phone in and query their services. With the Traditional Insurance Brokers the commission will get paid to your broker on an ongoing basis based on your monthly premiums.
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