Insurance companies often have different distribution systems for individual and group products because individual product distributors deal with individuals and small company owners; and group product distributors deal with human resource departments of corporations and other organizations.

Question

Quizplus · Accepted Answer

Individual and group products require different types of marketing and sales strategies, as they cater to different target markets. Distributors for individual products typically work with individual consumers, whereas group product distributors work with corporate clientele and their HR departments. Therefore, insurance companies often have separate distribution systems for these different products.

Insurance Companies Often Have Different Distribution Systems for Individual and Group