Direct Distribution vs Intermediary Relationships
Assign direct and intermediary channels to distinct product and customer segments so conduct obligations around advice are met without generating channel conflict.
CyberTRIZ analysis · Insurance contradiction DO003 · one of 8,235 worked contradictions published by CyberTRIZ.AI
Regulations
Business Context
Direct distribution can reduce commission expense, increase carrier access to customer data, and provide greater control over the purchasing experience. However, aggressive expansion of direct channels can create conflict with agents and brokers who already distribute the insurer's products. Avoiding direct channels entirely protects intermediary relationships but can restrict access to customers who prefer digital or direct purchasing.
Insurance TRIZ Resolution
Direct and intermediary channels can be assigned differentiated roles according to product complexity, customer preference, and advisory need. Straightforward transactions can move directly where appropriate, while complex risks and customers requiring advice remain supported by intermediaries. Lead-sharing, referral mechanisms, and differentiated service propositions can further reduce unnecessary competition between channels.
Applicable TRIZ Principles
Principle 1 – Segmentation separates distribution pathways according to customer and product characteristics.
Principle 3 – Local Quality assigns each channel the functions it performs most effectively.
Principle 5 – Merging connects direct and intermediary pathways where customers need to move between them.
Expected Outcome
Greater direct-channel capability
Preserved intermediary value
Lower channel conflict
Better alignment with customer preferences
Decision Indicators
Early indicators that this contradiction is limiting distribution include:
Intermediaries perceive direct channels as competing for identical business.
Customers are forced into advisory channels for simple transactions.
Direct customers cannot access advice when their needs become complex.
Channel compensation encourages internal competition.
Distribution strategy treats direct and intermediary channels as mutually exclusive.
Monitoring these indicators helps insurers expand direct distribution without unnecessarily weakening valuable intermediary relationships.