Which distribution method excels at generating price quotes but struggles to complete sales?

The distribution method that excels at generating price quotes but struggles to complete sales is online distribution. This approach allows customers to access various quotes quickly and easily through websites and digital platforms. The efficiency and convenience of online tools enable consumers to compare different insurance products, aiding them in the initial stages of their purchasing journey.

However, while online distribution can provide a wealth of information and options, it often faces challenges in closing sales. This is partly due to the lack of personalized interactions and guidance that vulnerable customers may require when making significant financial decisions like purchasing insurance. Many clients benefit from having an agent to walk them through the policy terms, answer questions, and address concerns, factors that are less prominent in an online-only environment.

In contrast, other methods like the independent agency system or exclusive agents rely on human interactions and relationships to facilitate the sales process, thus more effectively guiding clients from the initial quote phase to finalizing their purchases. Hybrid methods may offer a combination of interactions but do not specifically shine exclusively in quote generation versus sales completion.