What is an advantage for an insurer to use independent intermediaries to sell PMI products?

Utilizing independent intermediaries to sell Private Medical Insurance (PMI) products offers the benefit of impartial advice, which enhances the overall customer experience. Independent intermediaries are not tied to any one insurance provider, allowing them to present a range of options to clients based on their individual needs and preferences. This impartiality fosters trust with consumers, who may feel that they are receiving objective recommendations rather than being steered toward specific products for the sole benefit of a single insurer.

This approach can lead to better customer satisfaction and potentially higher sales conversion rates, as clients may be more inclined to purchase products when they feel that their interests are being prioritized. Additionally, these intermediaries can leverage their knowledge across multiple offerings to determine the most suitable products for each client, enhancing the quality of advice given.

The other options present limitations that do not align with the benefits provided by independent intermediaries. Higher product pricing is often a concern when using intermediaries, as their commission could add to costs. Guaranteed sales volume is uncertain when relying on independent intermediaries since sales depend on their individual efforts and market conditions. Finally, independent intermediaries operate outside the direct control of insurers, which can lead to a lack of oversight in the sales process and create challenges in aligning sales strategies.