One of the recent distribution approaches focused towards a particular segment of customers. To manage orphan clients that is customers who were sourced by the distributors who have since existed is one of the issue that insurers are attempting to fix. Loyalty channel is more of a customer relationship management approach to offering service and exploring opportunities for repeat business to the existing orphan customers. This channel usually a part of the Direct Sales Channel of an insurance company focuses on sourcing repeat business from orphan customers.

A discount offered to the holder of an insurance which is renewable at his option to induce him to renew the policy with the same insurer