What is a primary benefit for an insurer using direct selling methods?

Lowering operational costs is a significant benefit for an insurer that utilizes direct selling methods. When insurers sell directly to consumers, they can eliminate or substantially reduce expenses associated with intermediaries or agents, such as commissions, fees, and the overhead costs linked to maintaining a sales force. This streamlined approach often leads to more competitive pricing, as the insurer can pass some of these savings on to customers, thus potentially attracting more business.

Additionally, direct selling can facilitate a more efficient underwriting and claims process, as the insurer can manage transactions and communications directly with customers without intermediary involvement. This further reduces operational burdens.

While gaining immediate customer feedback is certainly a positive aspect of direct selling, allowing insurers to adapt their offerings more swiftly to meet market demands, the primary benefit in the context of this question focuses on operational cost savings. Similarly, avoiding regulatory complexities is not inherently a result of direct selling; many regulations still apply regardless of the sales method. Reducing customer interaction does not align with the goal of direct selling, which often aims to enhance customer engagement.