Sales channels play a crucial role in insurance market, and the data as of December 2022 reveal an interesting distribution in the volume of intermediated premiums. Independent intermediaries lead the market, representing a significant 54.1%. They are followed by the direct channel with 27.3%, while mass insurance and alliances capture 9.8%. Dependent intermediaries and bancassurance also have a presence, with 1.6% and 7.1% respectively. This diversified structure highlights the importance of adopting strategic approaches to reach the target customer effectively.
Insurers Ranking: Highest market share increase in commissions to distribution channels
Insurers Ranking: Highest market share increase in commissions to distribution channels
In the period between December 2021 and December 2022, five insurers have excelled in increasing their market share in the volume of brokerage commissions. SISA leads the ranking with an impressive increase of 1.60%, followed by AGRÍCOLA COMERCIAL with 0.90%. QUALITAS, ABANK and MAPFRE have also experienced solid growth with gains of 0.69%, 0.68% and 0.52% respectively. These insurers have demonstrated their ability to capture customer trust and consolidate their position in the market.
Insurers in El Salvador
Highest year-on-year market share growth ranking
Commissions to insurance agents and brokers
The prevalence of the Independent agents and brokers
Over time, the channel of independent intermediaries has demonstrated a solid and consistent performance in the local insurance market. Although its participation in total brokered premiums has experienced a decreasing trend from March 2021 to December 2022, going from 56.3% to 54.1%, this channel remains an influential force in the industry, showing adaptability and ability to maintain its position in a changing market.
The analysis of the data from out latest market research report reveals a dynamic and constantly evolving insurance market in El Salvador. The diversified structure of the sales channels offers opportunities to reach a variety of customers, and independent intermediaries stand out as a crucial segment. Insurers that have experienced sustained growth in their market share demonstrate the importance of innovation and customer satisfaction to remain competitive in the marketplace. For industry professionals, insurance intermediaries, and investors, understanding this data is essential to making strategic decisions that drive success in this insurance market.
Insurance Distribution Channels in El Salvador at a glance:
Bancassurance: The Bancassurance channel refers to the sale of insurance products through banking entities. In this model, banks act as intermediaries, offering insurance to their customers along with their usual financial services. Banks have access to a broad customer base, which allows them to promote and distribute a variety of insurance products. The key advantage of this channel is convenience for customers, as they can purchase insurance policies while doing banking. In addition, the bancassurance channel offers synergies between financial and insurance services, which can increase customer loyalty and profitability for both parties.
Alliances and Massive Insurance: This channel focuses on reaching large groups of clients through strategic alliances with different organizations and through the massive sale of policies. These alliances can be established with companies, state agencies, retailers, associations, clubs or other groups that have a broad membership or employee base. Through these alliances, insurers can offer insurance policies at more competitive prices or with additional benefits for group members. This sales channel is effective in reaching a large number of people with a single partnership, which can be beneficial to both insurers and customers.
Independent agents: Independent intermediaries are insurance agents or brokers who are not tied to any particular insurer and therefore may offer products from multiple companies. These intermediaries advise clients on the best coverage options according to their needs and budgets, which provides greater variety and objectivity in the insurance offer. Independent intermediaries act for the benefit of their clients, seeking the best offers and conditions in the market. This allows them to provide impartial advice tailored to the individual needs of each client.
Dependent intermediaries: Unlike independent intermediaries, dependent intermediaries are agents or brokers who work exclusively for a single insurer. These intermediaries are directly linked to a company and exclusively sell its products. By being associated with a specific insurer, these intermediaries have in-depth knowledge of your company's products and policies, which allows them to provide detailed information about your offerings. However, your focus is limited to solutions provided by your parent company.
Direct Sales channel: In El Salvador the direct sales channel implies that insurers offer their products directly to customers without the intervention of intermediaries. This can be through online sales, by phone, in physical offices of the insurer or through mobile applications. By eliminating intermediaries, insurers can offer more competitive prices and greater transparency in their products. Customers can easily access information and compare different options to make informed decisions. The direct sales channel is suitable for customers seeking simplicity and convenience in purchasing insurance without the need to interact with intermediaries.
Alliances and Massive Insurance: This channel focuses on reaching large groups of clients through strategic alliances with different organizations and through the massive sale of policies. These alliances can be established with companies, state agencies, retailers, associations, clubs or other groups that have a broad membership or employee base. Through these alliances, insurers can offer insurance policies at more competitive prices or with additional benefits for group members. This sales channel is effective in reaching a large number of people with a single partnership, which can be beneficial to both insurers and customers.
Independent agents: Independent intermediaries are insurance agents or brokers who are not tied to any particular insurer and therefore may offer products from multiple companies. These intermediaries advise clients on the best coverage options according to their needs and budgets, which provides greater variety and objectivity in the insurance offer. Independent intermediaries act for the benefit of their clients, seeking the best offers and conditions in the market. This allows them to provide impartial advice tailored to the individual needs of each client.
Dependent intermediaries: Unlike independent intermediaries, dependent intermediaries are agents or brokers who work exclusively for a single insurer. These intermediaries are directly linked to a company and exclusively sell its products. By being associated with a specific insurer, these intermediaries have in-depth knowledge of your company's products and policies, which allows them to provide detailed information about your offerings. However, your focus is limited to solutions provided by your parent company.
Direct Sales channel: In El Salvador the direct sales channel implies that insurers offer their products directly to customers without the intervention of intermediaries. This can be through online sales, by phone, in physical offices of the insurer or through mobile applications. By eliminating intermediaries, insurers can offer more competitive prices and greater transparency in their products. Customers can easily access information and compare different options to make informed decisions. The direct sales channel is suitable for customers seeking simplicity and convenience in purchasing insurance without the need to interact with intermediaries.
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