One of the main advantages of insurers operating on a direct basis through call centres is that

Insurers operating on a direct basis through call centers can achieve a reduction in overall expense ratios due to several operational efficiencies it provides. By interacting directly with customers, insurers can eliminate the need for intermediaries, such as brokers, who typically require commissions or fees. This direct approach often leads to streamlined processes, resulting in lower distribution costs and enabling the insurer to maintain a more competitive pricing structure.

Additionally, operating through call centers can allow for better utilization of technology, which further enhances efficiency and reduces administrative overhead. As a result, the overall expense ratio, which measures the costs of acquiring and servicing policies against revenue generated, tends to improve. This is particularly important in the highly competitive insurance market, where managing costs effectively can significantly impact profitability.

While certain other options may also present advantages, the most critical factor related to the direct operation through call centers is the overall reduction in expenses, illustrating a precise link between operational efficiency and improved financial performance.