Do you have trouble finding new creative methods to market your insurance business? Have Insurance Act rules on Incentives, rebates and inducements been restricting your explorative opportunities? If so, this article may be for you!
Firstly, for those who are unfamiliar with the term Inducement, an Inducement is anything that persuades another individual to alter their behavior. For example, offering an object of monetary value to an individual to persuade them to choose one certain product over another.
Previously under the Ontario Insurance Act, Inducements were prohibited within an insurance environment in any form, which has played a significant role in how individuals in the insurance industry conduct the marketing strategies of their business.
An Inducement is a business tactic that aids marketers to better display and differentiate their product from other competitors to their consumers, while strengthening consumer-business relationships. For the sake of the benefits derived from this tactic, other Canadian provinces such as Alberta have little to no restrictions against the use of Inducements by Insurance companies.