What percentage of private motor insurance is transacted through direct selling operations?

Prepare for the CII Certificate in Insurance - Motor Insurance Products (IF5) Exam. Dive into detailed questions and explore insightful explanations to boost your understanding. Excel in your exam preparation process.

The correct percentage of private motor insurance transacted through direct selling operations being in the range of 40-50% reflects a significant trend in the insurance industry. Direct selling operations have gained popularity due to consumer preferences for convenience and accessibility. This mode of selling allows customers to obtain insurance products directly from insurers without intermediary agents, often resulting in lower costs for both parties.

This percentage indicates a more significant portion of the market that is moving towards direct engagement between the insurer and the policyholder, enhancing the customer experience by streamlining processes and providing direct access to information. Given the evolution of technology and increased consumer online engagement, this choice properly captures the current landscape of motor insurance sales.

In terms of the other ranges, they may suggest a higher reliance on direct selling than is currently the case, therefore not reflecting the established data and trends within the market accurately.

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