Insurance Intermediation: An Economic Analysis of the Information Services Market

ISBN-13: 9783790819397 / Angielski / Miękka / 2007 / 246 str.

Martina Eckardt

Opis

Insurance intermediaries can help consumers to economize on information and transaction costs in insurance markets. This book analyzes conduct and performance in the market for insurance information services by applying search theoretical and industrial organization approaches. Based on a sample of 927 insurance intermediaries, coverage empirically studies the factors that affect the quality of the information services provided by them.

Spis treści

Intermediaries in the Insurance Market.- An Economic Explanation of Insurance Intermediation.- Competition between Insurance Intermediaries.- The Market for Insurance Intermediation in Germany.- Conclusions.

Blurb

Insurance intermediaries can help consumers to economize on information and transaction costs in insurance markets. However, competing intermediaries provide heterogeneous information services, which are difficult to assess by incompletely informed consumers. Conduct and performance in the market for insurance information services are analyzed by applying search theoretical and industrial organization approaches. Based on a sample of 927 insurance intermediaries, the factors that affect the quality of the information services provided by them are studied empirically. The results obtained support the main hypotheses derived from industrial organization theories as to the poor working of quality competition under incomplete and asymmetric information on the side of consumers. Thus, public policy should concentrate on increasing transparency about intermediaries’ (in-)dependence from insurance companies and improve consumers’ financial literacy to raise the overall quality in the information services market.