Shopassurance is an example of a dedicated over-the-counter channel through which insurance products are being sold employing the existing business networks. The introduction of such a new channel in a developing insurance market like ours is not without challenge. The article discusses in detail the prospects and challenges for adopting the shopassurance model in India.

Traditionally, insurance products are distributed more by employing contractual channels like agents and brokers than corporate channels where insurers directly reach the customer with their product. However, with the advent of new technologies with better networking capabilities corporate channels also have come to play a major role in distributing insurance products. Apart from people-centric and technology-centric insurance channel distribution, the modern day insurers distribute their products in a number of ways which are referred to as alternative channels of distribution in insurance parlance. They include delivery channels like call center, trade financing companies, chit fund companies, bancassurance, shopassurance etc. Table 1 depicts a comparison of these channels:

The distribution strategy and distribution location are entirely different in each of the channels.To exemplify, MetLife Insurance has a tie-up with Mumbai's Apna Bazar cooperative stores to sell life insurance policies. Bajaj Allianz has a tie-up with Godrej Agrovet to sell its insurance products through Godrej Aadhaar, which is an agri services-cum-retail shop. Notwithstanding these developments, agency force still plays a dominant role in delivering quality insurance service to the Indian customer.

Insurance Chronicle Magazine, Shopassurance, Insurance Products, Corporate Channels, Trade Financing Companies, Bancassurance, Insurance Policies, Indian Insurance Market, Distribution Strategy, Investment Services, Product Development, Marketing Communication, Insurance Service Providers.