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How Technology is Transforming Insurance Distribution Channels

4 minutes, 31 seconds read

‘Insuring’ has always been a mundane and complicated subject for businesses. Distribution channels allow customers to access and purchase products efficiently. According to JM Financial, online insurance sales for new business are fast catching up and are likely to grow at a CAGR of 13 percent to become a $37 billion break by 2025.

Each distribution channel requires different resources to be effective and impact the pricing structure. The type of insurance business model determines its structure, strategy and placement in the market.

Take, for instance, India. The market size of the online insurance business in India is currently $15 billion, but the overall insurance penetration rate is just 3.7% (Statista, 2018). 

The regions where insurance penetration is low poses an immense potential for the digital premium market. Insurers can leverage the following distribution channels to undermine the profound potential.

1. Self-directed or Direct Distribution Channel

Through Self-directed or direct distribution channels, insurers can reach out to the customers without shelling out commission for any middle man. With an increase in the population of tech-savvy customers, the ready availability or online channel of advice or transaction capabilities is the need of the hour. 

Online channels, websites, social media platforms, e-commerce and kiosks are some examples of the direct distribution channels in insurance. The 2017 Global Distribution and Marketing Consumer Study reveals that nearly 51% of digitally active groups of consumers (39% of all Insurance consumers) have purchased insurance through an online channel. The direct insurance distribution channel encourages self-service and independent decision making.

NLP-powered chatbots are a great way to provide a self-service portal for buying/renewing insurance policies. Leading Insurers like Religare are leveraging the direct distribution channel by integrating chatbots in different platforms like their website, mobile app, and even on third-party apps like WhatsApp.

2. Assisted Distribution

Agents and brokers are typically the key players in the insurance distribution channel, with market shares of 42% and 25% respectively. The old school face-to-face distribution channel is very much alive and is integrated with tech assisted models to ensure more leads and conversions. They mainly play a part in advising and managing complex insurance products.

agent's share in assisted insurance distribution channel

Agents, insurance brokers and reinsurance brokers remain the most recognized insurance purchase channel. The Gartner Group reports that 60% of the US GDP is sold through assisted or indirect channels. Cognitive technology is becoming a key enabler to strengthen the assisted distribution channel. PwC suggests leveraging analytics solutions (mainly predictive analytics and behavioral analytics) to increase sellers’ knowledge as well as skills.

[Related: How behavioral psychology is fixing modern insurance claims]

The technologies that are empowering learning for Insurers include augmented reality, machine learning, data analysis and NLP.

upcoming technologies in assisted distribution channel

For example, Zelros, a European AI startup, is augmenting the knowledge of sales and customer representatives through best product recommendations, advisory, and pricing based on the customer profile in real-time.

3. Affinity-based Insurance Distribution Channels

The affinity channel focuses on distributing products to a tightly-connected group of consumers with similar interests. Traditionally, the affinity-based distribution channel involved peer-to-peer networks, brokers and aggregators. While the network model remains the same, the model has become digital and tech-driven for affinity channels. And technology is playing a vital role in expanding the consumer base. The key benefits of the affinity distribution channel are-

  • Common platform for all stakeholders.
  • One-stop access to policies and claims.
  • Centralized database for insightful analysis.
API-based Insurance Model Affinity Distribution Channel

This distribution channel is also a part of B2B2C or API-based insurance business models. Here, Insurers can leverage 3rd party apps to distribute their policies. APIs or Application Programming Interfaces are lightweight programs to extend the functionality of existing apps. Travel, airbus, hotel, bank and retail are some examples of affinity-based distribution channels.

Finaccord estimates that airline companies hold a distribution share of up to 10% of the travel insurance market. The annual revenue from airline and travel insurance providers partnership may range from $1.2 billion to 1.5 billion in premiums.

[Related: 4 New Consumer-centric Business Models in Insurance, How InsurTech-Insurance Partnership Delivers New Product Innovations]

The majority of travel insurance policy sales across the globe are done through some kind of affinity partner instead of via a direct sales channel.

Jeff Rutledge, President & CEO, AIG Travel
Source: Insurance Business UK

The Bottom Line

In the countries where buying an Insurance is not mandatory, market penetration is extremely low for Insurers. Being meticulous in sales and marketing efforts and educating customers about the benefits of insurance is just not sufficient. Convenience is the key to new generation consumers. Therefore, insurers need to invest in technology and make insurance policies accessible to the new-age digital consumers through the channel of their choice. 

Michael D. Hutt and Thomas W. Speh, in their book – Business Marketing Management: B2B, suggest a six-step process to select among the most efficient insurance distribution channels-

  1. Determine the target customers.
  2. Identify and prioritize customer channel requirements by segment.
  3. Access the business’s capabilities to meet those customer requirements.
  4. Use the channel offering as a yardstick against those offered by competitors.
  5. Create a channel solution for customers’ needs.
  6. Evaluate and select the most effective among the distribution channels.

We’ve developed insurance chatbots for organizations like Religare to automate policy distribution and renewal. For your business-specific requirement, please feel free to reach us at hello@mantralabsglobal.com.

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Sales Applications Are Disrupting More Than Just Sales

Sales success today isn’t about luck or lofty goals—it’s about having the right tools in your team’s hands, wherever they go. Following our earlier in-depth exploration of sales technology, we will now examine how cutting-edge sales apps are becoming the backbone of modern industries, transforming complex workflows into seamless, growth-driving machines.

From retail to healthcare, logistics to real estate, businesses are deploying sales applications to enhance operational transparency, cut redundant tasks, and build intelligent sales ecosystems. These tools are not only digitizing workflows—they’re driving growth, improving engagement, and redefining how field teams operate.

Lead Ecosystems: Unified visibility across channels

One app. Five workflows. Zero friction.

A leading insurance brand relaunched their app—a sleek, powerful sales companion that’s turning everyday agents into top performers.

No more paperwork. More time to sell.

Here’s what changed:

  • Every visit is tagged, tracked, and followed through. Renewals? Never missed. Leads? Fully visible.
  • Attendance and reimbursements went on autopilot. No more manual logs. No more chasing approvals.
  • New business and renewals are tracked in real time, with accurate forecasting that sales leaders can finally trust.
  • Dashboards are clean, configurable, and useful—insights that move the business, not just report on it.
  • Seamless Integrations. API connectivity with Darwin Box, IMD Master Data, and SSO authentication for a unified experience.

The result? A field team that moves faster, sells better, and works smarter.

Retail: Taking Orders from the Frontline—Smartly

Field sales agents in retail, especially FMCG, used to rely on gut instinct. Now, with intelligent sales applications:

  • AI recommends what to upsell or cross-sell based on previous order patterns
  • Real-time stock availability and credit status are visible in the app
  • Geo-fencing ensures optimized route planning
  • Built-in payment collection modules streamline transaction closure

Healthcare: Structuring Sales with Compliance and Precision

Healthcare leaders don’t need more reports—they need better visibility from the field.  Whether it’s engaging hospital networks, onboarding clinics, or enabling diagnostics at the last mile, everything needs precision, compliance, and clarity. 

Mantra Labs helped a leading healthcare enterprise design a sales app that integrates knowledge, compliance, performance, and recognition, turning frontline agents into informed, aligned, and empowered brand advocates. 

Here’s what it delivers:

  • Role-based onboarding that keeps every level of the field force aligned and accountable
  • Escalation mechanisms are built into the system, driving transparency across commissions and performance reviews
  • A centralized Knowledge Hub featuring healthcare news, service updates, and training modules to keep reps well-informed
  • Recognition modules that celebrate milestones, boost morale, and reinforce a culture of excellence

Now, the field agents aren’t just connected—they’re aligned, upskilled, and accountable.

Real Estate: From Cold Calls to Smart Conversions

For real estate agents, timing and personalization are everything. Sales applications are evolving to include:

  • Virtual site tour integration for remote buyers
  • Mortgage and EMI calculators to increase buyer confidence
  • WhatsApp-based lead capture and nurture sequences
  • CRM integration for inventory updates and automatic scheduling

Logistics: From Chaos to Control in Field Coordination

Field agents in logistics are switching from clipboards to real-time command centers on mobile. Modern sales applications offer:

  • Live delivery status and route deviation alerts
  • Automated dispute reporting and issue resolution tracking
  • Fleet coordination through integrated GPS modules
  • Customer feedback capture and SLA dashboards

What’s new & what’s next in Sales Applications?

Here’s what’s pushing the next wave of innovation:

  • Voice-to-Text Logging: Agents dictate notes while on the move.
  • AI-Powered Nudges: Apps that suggest next-best actions based on behavior.
  • Omnichannel Communication: In-app chat, WhatsApp, email—unified.
  • Role-Based Dashboards: Different data views for admins, managers, and field reps.

What does this mean for Business Leaders?

Sales Applications are not just tactical tools. They’re platforms for transformation. With the right design, integrations, and analytics, they:

  • Replace guesswork with intelligence
  • Reduce the cost of delay and manual labor
  • Improve agent accountability and transparency
  • Speed up decision-making across hierarchies

The future of field sales lies in intuitive, AI-driven applications that adapt to every industry’s nuances. At Mantra Labs, we work closely with enterprises to custom-build sales applications that align with business objectives and ground-level realities.

Conclusion: 

If your agents still rely on Excel trackers and daily call reports, it’s time to reimagine your sales operations. Let us help you bring your field operations into the future—with tools that are fast, field-tested, and built for scale.

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