An Exploratory Examination of Two Models for the Distribution of Property and Casualty Insurance

Many smaller insurance agents and brokers are losing ground as a result of sluggish economic growth. Much of the dwindling market share is due in part to an unstable and hostile economic market, negligible leveraging capability, and inability to adapt swiftly to constant social and economical changes. As more distribution networks form, the value of insurance professionalism is diminishing. In the insurance industry, the customer’s need for proper insurance protection should be considered the single most important commitment by the firm. With the present drive to classify insurance products as a convenience good that can be purchased with minimum effort, the significance of the insurance product is being reduced to impulse shopping. Insurance offers a crucial safety net and must continue to be recognized as the remedy that prevents financial ruin. This paper reports the results of an exploratory study, which examines the specific growth strategy, mergers and strategic alliances, which responds directly to the business practices of the small insurance broker