Distribution Channels

  • Adnan MalikEmail author
  • Karim Ullah


This chapter has explained the distribution channels that insurance and takaful companies use. To cater to the needs of all segments of the market, companies explore all the available distribution channels for reaching out to potential clients. Traditionally, full-time exclusive agents marketed the products of a single company. Over time, independent agents and brokers entered the market, advising clients on the most suitable products available from a range of providers. These agents and brokers represent their client (either individual or corporate) in their dealings with insurance and takaful companies. Developments in information technology have opened several new channels of distribution. Use of these new channels—also called additional or alternate distribution channels—is increasing day by day. They include the Internet, banks and direct mail. In bancassurance and banca-takaful, companies use the banking platform to distribute their products. This significantly reduces marketing costs and gives banks the opportunity to earn income from fees.


Agents Alternate distribution channels Brokers Banca-takaful Distribution channels Exclusive 

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Centre for Excellence in Islamic FinanceInstitute of Management SciencesPeshawarPakistan

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