Do Independent Agent Insurers Provide Superior Service? The Insurance Marketing Puzzle

Prior research suggests that, within the property-liability insurance industry, independent agency insurers have higher expense ratios than insurers using other distribution systems. Consistent with these findings, the independent agents' share of the property-liability market declined from 69...

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Bibliographic Details
Published in:The Journal of risk and insurance 1995-06, Vol.62 (2), p.297-308
Main Authors: Barrese, James, Doerpinghaus, Helen I., Nelson, Jack M.
Format: Article
Language:English
Subjects:
Automobile insurance
Cost analysis
Customer services
Distribution channels
Employee insurance
Evaluation
Homeowners insurance
Independent insurance agents & brokers
Insurance
Insurance agents
Insurance companies
Insurance industry
Insurance markets
Insurance pools
Insurance premiums
Insurance providers
Liability insurance
Life insurance
Marketing
Quality of service
Shorter Articles
Statistical analysis
Studies
Citations: Items that cite this one
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Summary:Prior research suggests that, within the property-liability insurance industry, independent agency insurers have higher expense ratios than insurers using other distribution systems. Consistent with these findings, the independent agents' share of the property-liability market declined from 69 percent in 1970 to 59 percent in 1990. Defenders of the independent agency system argue that higher expense ratios are attributable to a differential in services offered to consumers. Using private passenger automobile insurance complaint data, this study tests for evidence of a perceived service differential between insurers using the independent agency and other distribution systems.
ISSN:0022-4367
1539-6975
DOI:10.2307/253793