What distinguishes group or affinity programmes in insurance products?

Group or affinity insurance programmes are characterized by their collaborative nature, typically involving a group of individuals who share a common bond, such as being part of the same association, profession, or community. These programmes often provide tailored insurance solutions that leverage the collective bargaining power of the group to negotiate better terms, which can include lower premiums and enhanced coverage options.

The correct choice highlights that these programmes are frequently offered as add-on products by banks, retailers, or other organizations, making them accessible to their customer base. This arrangement allows the insurers to reach a broader audience without needing extensive marketing efforts, as they can depend on the existing customer connections of these institutions.

The other options do not accurately reflect the nature or benefits of group or affinity programmes. For instance, offering higher premiums for individual members is contrary to the typical advantage gained through collective purchasing power. Excluding health coverage entirely would not be a defining feature, as many group programmes may encompass a variety of coverage types, including health. Lastly, limiting the focus solely to life insurance does not capture the expansive nature of group programmes, which can include various types of coverage beyond just life insurance.