Method of selling insurance products directly to the consumer, which includes direct mail and advertising in print, radio, television, or by telephone without the use of insurance agents.
Insurance Encyclopedia
Direct Selling
A distribution system within which an insurer deals directly with its customers’ existing as well as potential through its own employees i.e., without the support of any other intermediary. The channel uses a dedicated sales team, across various locations of the insurance company, to solicit and administer the insurance business. Direct selling also include mail-order insurance and the sale of insurance from vending machines at airport booths and elsewhere.
Direct selling system
A system for selling insurance wherein the insurer sells directly to the insured via its employees. This includes insurance sold through mail order services.
Direct supervision
In an office setting, direction and management of a medical procedure given by the physician. The doctor must be present in the office suite and available to give assistance and instruction during the performance of the procedure. The doctor does not need to be present in the room when the procedure is performed. Some medical procedures require direct supervision to bill for a specific level of service. This level of supervision is required when billing for “incident-to” services in an office setting. Also see general supervision and personal supervision .
Direct treatment relationship
Treatment association between a patient and a provider that is not an indirect treatment relationship. For example, a radiologist or a pathologist would be considered to have indirect treatment relationships with patients because they provide diagnostic services requested by other providers and furnish results to the patient through the direct treating physician.
Direct writer
Insurer that sells its policies directly to the public either through its own salaried employees or exclusive agents. Also called direct insurer or direct-writing company .
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An insurer that sells coverage directly via its own employees. Contrast with Independent agent.
Direct Writer (Insurer)
(i) An Insurer that markets its services through its own employees (ii) The underwriters who writes the risk that is being Reinsured often than a retrocedant.
Direct writer (Liability/Property Insurance)
An insurer who sells his or her products through the direct selling system, or the exclusive agency system.
Direct Writers
While this term is often used for captive or exclusive agents, it is more accurate to apply the term to companies that sell their products directly to the public with advertising, inbound telemarketing, direct mail, and the Internet. The best known of these is GEICO. Each state requires a licensed agent in that state to sell insurance. Thus, direct writers will have an employee licensed in each state to sell policies.Most direct writers use advertising to promote the company and encourage consumers to contact them directly for help with their insurance needs. Direct writers have non-neighborhood offices or agents to visit. Questions and claims are handled through the phone, mail, or Internet.One of the advantages of the direct writer is that the cost of the insurance is often lower because no commission is paid to an agent. On the other hand, there are no agents to visit personally when a need arises or a claim is filed. The policyholder must contact the direct writer’s office for assistance. For individuals who place a low value on face-to-face business relationships a direct writer is often a lower cost alternative. (See Agent).
Direct Writing
Transacting insurance in direct contact with the public.