Concerns Over the Spread of Sub-agency Sales in Cardshurance
Recently, in the cardshurance (insurance product sales by credit card companies) market, there has been a proliferation of sub-agency sales methods. This structure, based on outsourcing agreements between credit card companies and corporate insurance agencies (GA), has raised concerns due to issues such as the ambiguity of responsibility for incomplete sales. In this blog post, we will explore the operational methods of cardshurance sub-agencies and the resulting problems. Structure and Spread of Cardshurance Sub-agencies According to recent reports in the insurance industry, some credit card companies are moving to activate cardshurance sales in the form of sub-agencies. Unlike typical cardshurance, where an insurance contract is signed by a planner affiliated with the credit card company, the sub-agency model involves the credit card company outsourcing the entire process to a separate insurance agency, while only receiving brokerage fees. This trend gained momentum following the Fin...