Which distribution method primarily relies on building personal relationships with customers?

The correct answer focuses on the Independent Agency System because this method of distribution emphasizes personal relationships and personalized service tailored to the specific needs of clients. Independent agents represent multiple insurance companies and have the flexibility to offer a variety of products. This independence allows them to build trust and rapport with their customers by providing tailored advice and recommendations based on individual circumstances.

In an Independent Agency System, agents typically invest significant time in face-to-face interactions with clients. This builds loyalty and long-term relationships, as agents can become well-acquainted with clients’ personal situations and insurance needs. The emphasis on personal service and customized solutions further strengthens these relationships.

While other distribution methods like online distribution and direct marketing may offer convenience and broader reach, they do not prioritize personal connections to the same extent. Exclusive agents work for a single insurance company and, although they may develop relationships with clients, they are limited in the breadth of products they can offer, which can hinder the depth of personal interaction compared to independent agents who can provide a variety of solutions from different carriers.