What costs are involved in selling PMI through intermediaries?

When selling Private Medical Insurance (PMI) through intermediaries, several costs are incurred, which include paying commissions, establishing sales infrastructure, and marketing costs.

Paying commissions to intermediaries is a fundamental aspect of this sales strategy, as intermediaries, such as brokers or insurance agents, are compensated based on the policies they sell. This incentivizes them to promote and sell PMI effectively, as their earnings depend on the volume of sales.

Sales infrastructure costs refer to the systems, tools, and technologies needed to support the sales process. This may include customer relationship management (CRM) systems, training for intermediaries, and operational support to ensure that the process runs smoothly and efficiently.

Marketing costs are also a significant factor, as promoting PMI and creating awareness among potential clients is essential for driving sales. This can encompass advertising, promotional materials, and public relations efforts to attract customers and persuade them to consider PMI products.

By identifying all these components—commissions, sales infrastructure, and marketing—the comprehensive nature of the costs involved in utilizing intermediaries for the sale of PMI becomes clear, justifying the selection of that choice as the best answer.