The key role played by intermediaries in the retail insurance distribution

Abstract

Purpose The insurance market has high churn rates because customers’ purchase decision-making process and claims management rely heavily on intermediaries. The purpose of this paper is to investigate the role played by insurers and intermediaries in customer satisfaction, as well as in the preferences of customers regarding the purchase decision-making process. Design/methodology/approach The first step was to select the most important attributes for Portuguese insurance customers. Three focus groups were conducted (using B2C and B2B markets), and data from Portuguese car insurance customers were gathered through an ad hoc questionnaire. Structural equation models and the multidimensional scaling unfolding model were applied. Findings Intermediaries play a key role in the retail insurance distribution channels by influencing customer satisfaction, claims management and the purchasing process (premium acceptance). Practical implications Because of the influence that intermediaries have on customer satisfaction, insurers should improve their partnerships (back office support) with intermediaries. Originality/value The study contributes to the retail distribution literature of the insurance sector by providing empirical evidence of the impact of intermediaries on customers’ satisfaction.