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These, then, are the different activities carried out by

the various departments in an insurance company. An

equally important activity which has not been covered

above is the distribution of the different products of the

insurance companies. This distribution is carried out by

various components of the distribution channel.

10. DISTRIBUTION CHANNELS

These are routes by which the product prepared by the &

new product team and the Actuary reaches the ultimate

consumer. Thus, the distance between the producer and

the consumer is bridged by the distribution channel.

In the case of insurance companies, the distribution system

is a network of individuals and organizations that are

involved in making the insurance products available to the

customers. They form a link between the insurance

company and the buyers of insurance products.

The various components of the distribution channel in an

insurance company are:

a. AGENTS

An insurance agent is an agent licensed under section 42

of the Insurance Act, 1938. He/she receives payment by

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