Insurance Sales 保險的銷售

Role of the Sales and Marketing Function 銷售及市場推廣部門的角色

An insurer can only pool risks, pay claims and stay in business if it collects enough premium, so sales is one of its core functions. The sales and marketing function identifies target customers, promotes products, supports and trains front-line sales staff, and maintains relationships with agents and brokers.

The marketing concept is not the same as simple selling. Selling concentrates on pushing existing products. Marketing starts with market research into what customers need, then designs and prices products to meet those needs at a profit.

Sales works closely with other departments. Product development designs new products using market feedback, underwriting decides whether to accept an individual risk and on what terms, and the claims department handles claims. Underwriting and claims decisions are not part of the sales function.

The Marketing Mix 市場營銷組合

The marketing mix is usually summarised as the four Ps: product, price, place and promotion. An insurer adjusts these four elements to suit its target market.

Product means the scope of cover, policy terms and riders, for example launching a life plan with a critical illness benefit. Price means the premium level and how it is paid; it must cover claims and expenses and still be competitive. Place means how the product reaches the customer, in other words which distribution channels are used, such as agents, brokers, online platforms or banks. Promotion covers advertising, sales literature, sales campaigns and public relations.

Exam questions often test this through scenarios. If an insurer decides to sell travel insurance through travel agencies and a mobile app, that is a 'place' (distribution) decision. Cutting premiums to attract younger customers is a 'price' decision.

Intermediary Channels: Licensed Insurance Agents and Brokers 中介人渠道：持牌保險代理人與持牌保險經紀

In Hong Kong, insurance intermediaries carrying on regulated activities must be licensed by the Insurance Authority (IA), and carrying on regulated activities without a licence is an offence. There are two main types: licensed insurance agents (individual agents, insurance agencies and their technical representatives) and licensed insurance brokers (broker companies and their technical representatives).

A licensed insurance agent acts on behalf of its appointing insurer or insurers. The relationship is one of agency: the insurer is the principal and is responsible for the agent's acts within its authority. The agent may only sell its appointing insurers' products. The advantage is that the insurer can train and supervise its agents directly, and customers get ongoing personal service.

A licensed insurance broker acts on behalf of the policy holder (the client), not the insurer. The broker analyses the client's needs, compares products and terms from different insurers in the market, and arranges suitable cover. Broker companies must meet financial and other requirements set by the IA, such as capital requirements, professional indemnity insurance and keeping client monies in client accounts.

The key distinction: if a question asks whom the intermediary represents, an agent represents the insurer and a broker represents the client.

Direct Marketing, Bancassurance and Other Channels 直接市場推廣、銀行保險及其他渠道

Direct marketing means the insurer sells to customers itself, without an intermediary: for example, online purchase through its website or mobile app, telemarketing by its own staff, or direct mail. Because no commission is paid, costs are lower and buying is convenient. It suits simple, standardised products such as travel and home insurance best. The drawback is the lack of face-to-face professional advice, which makes complex long-term products harder to sell.

Bancassurance means a bank distributing insurance products to its customers. In Hong Kong a bank normally acts as a licensed insurance agency for its appointing insurers, and its staff sell as licensed technical representatives. Banks' insurance intermediary business is also supervised by the Hong Kong Monetary Authority. The strengths of bancassurance are the large customer base, customers' trust in the bank, and the chance to cross-sell alongside banking services such as mortgages and deposits. Remember that the insurer, not the bank, carries the risk.

Other channels include affinity groups (for example, a professional body or membership organisation arranging cover for its members) and businesses that offer insurance alongside their main product, such as car dealers and travel agencies. If these businesses arrange insurance they must also meet the licensing requirements, and they normally act as insurance agents.