Agent and Broker Intermediaries in Insurance Markets - an Empirical Analysis of Market Outcomes

Thunen-Series of Applied Economic Theory Working Paper No. 34

32 Pages Posted: 27 Jan 2005

Date Written: 2002

Abstract

Insurance markets are characterized by profound market imperfections. Insurance intermediaries reduce transaction costs and information asymmetries. From transaction cost economics,agency theory, and law and economics literature the hypothesis is derived that insurance brokers may provide more high-quality information and advisory services which are better suited for the needs of the consumers than insurance agents. Empirical tests for German insurance intermediaries confirm this thesis. But there are also findings that structural factors like firm size, employment structure and degree of specialization may outweigh the incentives set by different legal settings.

Note: The Downloadable document is in German.

Keywords: Insurance, intermediation, transaction costs economics, principal agent theory, law and economics

JEL Classification: D82, G140, G220, L15

Suggested Citation

Eckardt, Martina, Agent and Broker Intermediaries in Insurance Markets - an Empirical Analysis of Market Outcomes (2002). Thunen-Series of Applied Economic Theory Working Paper No. 34. Available at SSRN: https://ssrn.com/abstract=655143 or http://dx.doi.org/10.2139/ssrn.655143

Martina Eckardt (Contact Author)

Andrássy University Budapest ( email )

Pollack Mihály tér 3
Budapest, 1088
Hungary
+36 1 266 4408 (Phone)
+36 1 266 3099 (Fax)

HOME PAGE: http://www.andrassyuni.hu/

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