Multi-channel strategies for retail financial services

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The retail financial services industry, particularly insurance, is experiencing significant transformations. Following the deregulation of the insurance sector in the early 1990s, insurers have prioritized stability and security over efficiency and profitability. Factors such as the capital market crisis, deregulation, the disintegration of the traditional value chain, the rise of new market players, and technological advancements have collectively disrupted the financial services landscape. Despite these changes, remnants of the regulated era persist; in some insurance companies, implementing changes in service distribution often requires the approval of the tied agent channel. This contrasts with trends in other sectors, like retail banking, which highlight the need to adapt distribution systems to evolving consumer preferences for convenience and accessibility. Financial services inherently involve high interactivity with customers throughout the service delivery process, leading to information asymmetries due to the prominence of credence and experience qualities. Thus, the concept of "financial services" extends beyond mere risk protection to encompass the entire customer relationship process.