Direct Insurer

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Direct Insurer A Insurance company that does not deal via an intermediary (brokers or agents). Typically direct insurers sell their products through contact centres (also called call centres) or online through a website. There are more direct insurers in non-life insurance business (e.g. home, auto, travel insurance) than in life insurance (e.g. life, disability, critical illness, health insurance) due to the nature of the life insurance business that requires more attention to the assessment of each case (e.g. completing health questionnaires, medical exams etc.). Nevertheless there are direct insurers who also sell life insurance. Direct insurers operate without branch offices or customer-facing representatives and consultants. Today, direct insurance companies operate primarily via the Internet. Communications are carried out primarily via apps, online portals, email, conventional mail or telephone. Direct insurers not only present their policies online, they also let you apply for policies online. This can be beneficial to applicants. For one thing, you can save yourself a trip to a branch office or a visit from an insurance broker. Because direct insurers save on the cost of consultation and running expenses, their insurance policies are often cheaper than those offered by conventional insurance providers. Direct insurance was set to disrupt the industry in November 14, 2019 Direct insurers evolved their sales approach from purely mail- and phone-based to online purchasing in just a few decades. In Europe, direct premiums sharply increased to about €15 billion in sales by 2009. This momentum led to high expectations that direct insurers would capture a large percentage of premiums and substantially disrupt the industry. But ten years later, the reality is different: the share of all direct premiums represents only a single-digit percentage of the market. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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