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Affordable Car insurance in San Antonio, TX – Mass Merchandising

Posted by: headm on: December 29, 2015

Cheap car insurance in North Carolina is made possible by mass merchandising.  In mass merchandising, members of an organization are insured free within single plan of insurance at lower premiums than those charged for non-members. Although insurance coverage is provided within single plan, the insurer nevertheless retains the best of individual underwriting selection. Find auto insurance in San Antonio at www.txautoinsurancequotes.com.

Targeting a mass market is a technique that lots of insurers are now using to increase sales potential and lower distribution costs. It is generally accepted that various forms of mass marketing insurance products may be the direction where the industry is most likely to maneuver later on.

Financial Services Marketing
The 1980’s ushered in a new marketing strategy that embodies horizontal integration. Horizontal integration is the merging of insurance companies and other major banking institutions into broad-based financial conglomerates that offer a sizable range of products and services such as 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 is a trend toward the conversion from distinct and separate financial institutions, each using their own specialties, into a more integrated grouping of a variety of financial services. Integration of the financial services provides one-stop access to a conglomerate’s numerous financial offerings and cross- marketing activities that combine different services and products in a single package.

Although it appears that the marketplace for financial services is quite small, developments inside the financial services industry are required to have an effect on the creation and distribution    of different lines of insurance in the future.

UNDERWRITING
Underwriting has been defined generally because the process of hazard recognition and evaluation, selection, pricing, and determination of policy conditions and terms. It calls for appraising a danger, deciding the conditions of its acceptability, and determining a rating basis. It’s interrelated with rate-making, sales, and claim settlements.

The underwriting department performing this function doesn’t have a common organizational structure among all insurers. Departmental organization varies as between property, liability, life and health insurers; regarding company size, the extent to which all lines or specialty line is written, and marketing methods. Nevertheless, the function of the underwriter would be to evaluate the risk to find out whether or not it ought to be assumed, and, if that’s the case, under what conditions.

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