Casualty Actuarial Society (CAS) Practice Exam

Which distribution channel is NOT typically used by insurers to promote their products?

1. Direct mail marketing

2. Social media advertising

3. Online marketplaces

4. In-person storefronts

The correct answer is: In-person storefronts

In-person storefronts are generally not a common distribution channel for insurers to use in promoting their products. Insurers typically rely on more flexible and scalable methods to reach a wider audience, such as direct mail marketing, social media advertising, and online marketplaces. These channels allow insurers to efficiently target specific demographics, utilize data analytics for marketing strategies, and adapt to changing consumer behaviors. In contrast, in-person storefronts require a significant investment in physical locations and staffing, which may not align with the operational strategies of many insurers who prioritize cost-efficiency and wide-reaching digital channels. Given the growth of technology and online interaction, most insurers focus on maximizing their presence in digital spaces where consumers are increasingly inclined to shop for insurance products.