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The Quality of Insurance Intermediary Services-Empirical Evidence for Germany

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  • Martina Eckardt
  • Solvig Räthke-Döppner

Abstract

Competing insurance intermediaries provide heterogeneous services that are difficult for incompletely informed consumers to assess. Transaction cost economics, search theory, and principal-agent theory provide arguments on product quality differences between exclusive agents and independent intermediaries. This article uses a sample of 927 insurance intermediaries in Germany. By performing OLS estimations, we test the impact of the different distribution channels and other factors on intermediaries' service quality. Depending on the proxies used for service quality, we find mixed evidence for the product quality hypothesis. Service quality depends to a large extent on the information-gathering and processing activities of the individual intermediaries, independent of the respective distribution channel. Copyright (c) The Journal of Risk and Insurance, 2010.

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Bibliographic Info

Article provided by The American Risk and Insurance Association in its journal Journal of Risk and Insurance.

Volume (Year): 77 (2010)
Issue (Month): 3 ()
Pages: 667-701

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Handle: RePEc:bla:jrinsu:v:77:y:2010:i:3:p:667-701

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  1. Hugh Gravelle, 1993. "Product Price and Advice Quality: Implications of the Commission System in Life Assurance," The Geneva Risk and Insurance Review, Palgrave Macmillan, vol. 18(1), pages 31-53, June.
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Cited by:
  1. Christiansen, Marcus & Eling, Martin & Schmidt, Jan-Philipp & Zirkelbach, Lorenz, 2012. "Who is Changing Health Insurance Coverage? Empirical Evidence on Policyholder Dynamics," Working Papers on Finance 1223, University of St. Gallen, School of Finance.
  2. Richard Brophy, 2012. "Development of insurance regulation in Ireland," Journal of Financial Regulation and Compliance, Emerald Group Publishing, vol. 20(3), pages 248-263, July.
  3. Dan Constantin Danuletiu & Adina Elena Danuletiu, 2011. "Trends And Challenges Of Romanian Brokerage Insurance Market," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(13), pages 24.

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