Cheap auto insurance in North Carolina is made possible by mass merchandising. In mass merchandising, people in a group are insured www.TxAutoInsuranceQuotes.com under a single plan of insurance at lower premiums compared to those charged for non-members. Although insurance coverage is provided under a single plan, the insurer nevertheless retains the best of person underwriting selection. Find auto insurance in San Antonio at www.txautoinsurancequotes.com.
Targeting a mass market is a technique that lots of insurers are actually using to improve sales potential and reduce distribution costs. It’s generally accepted that many forms of mass marketing insurance products is the direction where the market is most likely to maneuver later on.
Financial Services Marketing
The 1980’s ushered in a new online marketing strategy that embodies horizontal integration. Horizontal integration is the merging of insurance providers along with other major banking institutions into broad-based financial conglomerates that provide a sizable range of products and services for example insurance, tax-shelters, stocks, bonds, mutual funds, property, etc. Pioneers within the movement are Sears, Prudential/Bache and Sherson/ American Express.
An increasing number of larger corporations are entering the broad financial services field. There’s a trend toward the conversion from distinct and separate financial institutions, each using their own specialties, into a more integrated grouping of the number of financial services. Integration from the financial services provides one-stop use of a conglomerate’s numerous financial offerings and cross- marketing activities that combine different services and products in a single package.
While it appears that the marketplace for financial services is quite small, developments inside the financial services industry are required with an impact on the creation and distribution of different lines of insurance in the future.
Underwriting has been defined generally as the procedure for hazard recognition and evaluation, selection, pricing, and resolution of policy terms and conditions. It calls for appraising a risk, deciding the conditions of their acceptability, and determining a rating basis. It is interrelated with rate-making, sales, and claim settlements.
The underwriting department performing this function does not have a typical organizational structure among all insurers. Departmental organization varies as between property, liability, life and health insurers; as to company size, the extent to which all lines or specialty lines are written, and marketing methods. Nevertheless, the function of the underwriter is to evaluate the risk to find out whether or not it ought to be assumed, and, if so, under what conditions.