White-labelling allows an organisation to establish an insurance product that is marketed with their own branding (jointly with the insurer’s brand) to their own base of members or customers. The insurance product and risk remain with the insurer, but the organisation could earn commission, leads or royalty fees on the sales of the product.
A white-labelling solution will always have a brand and an insurer. Most white-labelling solutions will also involve third-party service providers where the brand or insurer is unable to provide the required service. A commercial agreement sets the parameters.
The Insurer assumes compliance accountability. Additional services may be rendered by the insurer, depending on the operational ability of the brand that is partnered with. These services include distribution, administration, product design and underwriting. The most important function is that the insurer takes responsibility for the actions of all the players in the arrangement from a regulatory compliance point of view.
The Brand Provider provides the customers, either directly through sales or indirectly through referral. The brand often acts as binder holder, usually as a Non-Mandated Intermediary (NMI), as an NMI may distribute insurance to the public. It also fulfils various binder functions on behalf of the insurer.