There are three ways to take out insurance: on paper, online or through a broker.
What are the two major families of insurance contracts offered on the market? There are three ways to buy insurance: by paper, online, or through an insurance broker.
Typology of insurance contracts
There are two main families of service contractsassurance :
- damage insurance contracts covering damage suffered by the insured or caused to third parties, such as home insurance;
- personal insurance contracts covering either the policyholder or one or more beneficiaries once morest the risk of harm to physical integrity, for example death insurance.
But how to formalize the exchange of consents between policyholders and insurers? The terms and conditions for signing a contract with an insurance company have evolved. From now on, three different formulas are proposed.
The classic formula: the paper contract
Many insurers still offer the traditional method to their clients: the exchange of consent formalized by a written document signed by the parties.
This approach is still quite widely used, as many insurance companies still have a physical sales network. These agencies are managed by employees or general agents (independent workers). This classicism still appeals to customers who prefer to maintain commercial contact and contract follow-up with a physical contact.
Contracts signed online
The vast majority of insurance players now allow their customers to sign a 100% digital contract, i.e. online. Customers often study the various offers on the market using an online comparator or sometimes directly on an insurance company’s website. This allows them to obtain an overview, but also to save money: most insurers occasionally offer cheaper online offers in order to attract new customers.
The websites of online comparators or insurers present the characteristics of the insurance product under consideration. Once convinced, customers provide some scanned supporting documents (for example their identity document) and electronically sign their insurance contract.
The success of these online insurance contracts can be explained for two reasons. Firstly, the reduction of costs (which in turn makes it possible to offer less expensive insurance contracts to customers): no expense for renting or managing premises, purchasing equipment, no postage, less staff costs… On the other hand, considerable time saving, since signing an online contract is faster than with a paper contract (no more sending documents by post or trips to agencies or to customers… ).
However, people wishing to sign a contract online should find out beforehand regarding the insurance company and the quality of its customer service. For example, through the media specializing in savings, with consumer associations, or by referring to customer reviews on the Internet.
Contracts signed with an intermediary
Some people use an intermediary to sign their contract: insurance brokers. The latter approach several insurance companies on behalf of clients, in order to offer them more personalized solutions, taking into account their objectives. This is for example the case of a real estate broker who will find borrower insurance more attractive than that offered by a bank as part of a mortgage, or of a wealth manager who lowers the entry fees of a life insurance contract. Once the best possible insurance contract has been selected by their broker, his clients sign it and the broker receives a commission.
Did you know ?
Each customer is free to take out insurance, either in a network of agencies, or online, or by soliciting a broker. Some day-to-day transactions contain the implicit subscription to insurance, which is not always well understood by all customers (for example, travel insurance included in certain bank card contracts). All insured persons must therefore obtain proper information beforehand in order to avoid paying for two insurance companies providing similar services.
