What is the primary function of insurers using a direct marketing system?

The primary function of insurers using a direct marketing system is to sell insurance directly to consumers. This method eliminates intermediaries, such as brokers and agents, allowing insurers to connect with customers via various direct channels such as the internet, phone, or direct mail. By utilizing a direct marketing approach, insurers can often reduce costs associated with commissions and other fees that would typically be paid to agents or brokers. This not only streamlines the purchasing process for consumers but can also provide them with more competitive prices. Additionally, direct marketing allows insurers to maintain a closer relationship with their customers, facilitating better customer service and targeted marketing efforts.