Insurance carriers are the companies and there are two types of insurance carriers: direct and reinsurance. The Direct carriers are responsible for the initial insurance policy underwriting. Agents appointed to work in the field with the customers builds a book of business with the insurance company. The insurance company will look for reinsurance carriers to assume all or part of the risks connected with the insurance policies originally underwritten by direct insurance carriers. Direct insurance carriers often look for reinsurance on large portions of the risk they insure. Insurance for Insurance.
Direct insurance carriers offer a variety of insurance policies to customers.
- Life insurance.
- Disability insurance.
- Health insurance.
- Annuities
- Property-casualty insurance
- Liability insurance
Some insurance includes large groups of people covered under the same policy. These kinds of insurance policies are common for employers wanting to offer benefits to their employees. Unions, professional associations, and other membership driven groups and organizations may also be able to offer group benefit for their membership.
Several years ago Congress allowed insurance carriers and other financial institutions, including banks and securities firms, to engage in cross-selling each other’s products. Because of these changes in laws insurance carriers may sell financial investment products like retirement plans, securities, and mutual funds. Many like insurance carriers found this opportunity to be a natural progressions and complement to the fact they already told sell annuities. Insurance carriers, banks and securities firms engaged in numerous mergers, after the changes in the laws. The merging companies gained access to each other’s client base and geographical markets.
Insurance carriers view the Internet as a major tool for reaching customers. Nearly every carriers use the Internet if for no other reason then to publish company information, and marketing brochures. The insurance industry has always been computer active and today, many insurance carriers are expanding their Web sites to include customer access to policy information, online billing information. Some insurance carriers have added Internet claims submissions. Many insurance carriers provide insurance quotes online based on the customers information provided. Some insurance companies offer customers the opportunity to purchase policies through the Internet without needing to speak with an agent.
There are also several insurance carrier-sponsored Internet sites. Some insurance carriers have created “lead-generating” sites. A lead generating site offers the customer the chance to input their insurance policy information and other details about what they need for insurance coverage. The insurance carriers charge a fee, to other insurance carriers and the lead generating Web site will forward the customer’s insurance request to the paying insurance companies. Customers are then provided with quotes based on the same information from several insurance carriers. The customer is then able to decide which policy meets their needs and contact the company or representative agent to purchase the insurance policy. This gives insurance customers the chance to compare apples to apples and take the best policy for the best premium rate.
Related Blogs:
- What is the Business of Insurance?
- More about the Business of Insurance.
- AM Best The Insurance Information Source.
Glossary of Insurance Terms:
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