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Abstract

This research examines whether a competitive advantage exists for insurers which provide independent agencies with rating software to generate price quotes. Data relative to the Business Owners line of insurance were collected from several Wisconsin agencies which represent several BOP insurers, some of which provide software for rating BOP applications. The results indicate that providing rating software did not increase insurers’ business volumes, but may decrease their underwriting costs. Insurers which already are developing such software for their own use, may benefit if the marginal cost of disseminating the software to agencies is low.

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Bibliographic Info

Article provided by Western Risk and Insurance Association in its journal Journal of Insurance Issues.

Volume (Year): 16 (1993)
Issue (Month): 2 ()
Pages: 1-19

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Handle: RePEc:wri:journl:v:16:y:1993:i:2:p:1-19

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