• Serhii Nikolaienko Zhytomyr Ivan Franko State University, Ukraine
  • Kateryna Kashchuk Zhytomyr Ivan Franko State University, Ukraine




insurance company, insurance product, agent network, network marketing, insurance agent, distributor, life insurance


This article discusses such an urgent problem as the introduction of insurance products through network marketing. It is noted that at present, MLM can become an effective agent network in the implementation of insurance services in the insurance market of Ukraine. The scientific works of many domestic and foreign scientists who are actively researching the activities of insurance agents are being investigated. The insufficiency of the insurance activities’ studies in introducing insurance products through such a sales channel as network marketing has been determined. Three models of the agent network managerial structures that are used by insurers are considered: simple horizontal, pyramidal, multi-level (MLM). It is proved that in foreign practice, multi-level marketing has long been an effective tool for introducing insurance services and managing an agent network. The laws that apply in society and in the consumer market are being specified. The advantages of network marketing are identified, as well as its disadvantages are highlighted. The essence and role of the distributor in the work of the agent network is determined. The authors disclose statistics on the feasibility of implementing network marketing when implementing insurance products. The economic efficiency of life insurance policies’ the implementation according to the MLM system has been proved. The importance of presentations, their types (collective and individual) and features are considered. Depending on the activities of network distributors, the following types are distinguished: “wholesale customers”, “active customers”, “weekend warriors”, and “entrepreneurs”. The network method significant advantages of  selling insurance products are highlighted, such as: saving insurance companies from many problems and costs associated with finding, hiring, motivating, training, developing and servicing agents; with high costs of doing business, a large staff of specialists; with advertising, search and customer acquisition and the like. The results of the study can be used both for further study of the life insurance market, and other types of risk insurance.



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