2014, Vol.25, No.3

Journal of Insurance and Finance 2023 KCI Impact Factor : 0.59

pISSN : 2384-3209
https://journal.kci.go.kr/kiri

This study focuses on factors for an auto insurance customer's intention to switch to another auto insurance companies. The collected data by Korea Insurance Research Institute's Annual Korea Insurance Customers Survey, such as customer satisfaction, loyalty to a current insurance company, annual insurance premium, and individuals’ socio-demographic variables, are empirically examined as to have significant influence on probability of a customer’s switching intention. A defected customer could get benefit from switching with reduced auto insurance premium as long as his/her satisfaction level remains the same as an auto insurance company he/she left. In addition to a customer’s satisfaction, loyalty to a current auto insurance company and psychological factors, of which a customer might think important, have significant effect on a customer’s switching intention. Endogeneity could arise since current premium is observable and highly correlated with unobservable premium, which could be offered by another auto insurance company. Since auto insurance premium and customer’s socio-economic variables are correlated to each other, endogeneity problem could have effect on estimation result. This research takes into account this endogeneity problem by estimating instrumental variable probit model. Estimation result shows that the probability of a customer's switching intention increases in premium and decreases in satisfaction level, a customer’s loyalty, and psychological factors. The findings imply that search and switching cost to defect current insurance company do exist in Korean auto insurance market, which are similar ones as previous literature.

Since the solicitors of insurance companies are special independent contractors, perceived organizational identification may be low and so turnover intention may be high. Even though the solicitor’s high turnover rate is a very important issue of insurance marketing channel, there is no empirical research on the effect of organizational identification on turnover intention of the solicitors. Therefore, we exploratory studied about perceived level of organizational identification, perceived level of turnover intention, and the effect of organizational identification on turnover intention of the solicitors of large life insurance companies. Contrary to expectation, the result showed that the solicitors' perceived organizational identification was slightly high and turnover intention was slightly low. Organizational identification had a negative effect on turnover intention and turned out to be an important determinant of turnover intention, because it accounted for 33.3% of turnover intention. Some theoretical and managerial implications and future research directions were discussed based on employment type, job characteristics, and job voluntariness.

This paper analyzed the relationship between the government-owned banks and firm age, by using the data of listed Korean firms. For the analysis, we used the ratio of the government-owned bank loan to total bank loan and the ratio of the government-owned bank loan to total financing from outer sources, as measurements of the relations between main banks and government-owned banks. We adopted the firm age both since its foundation year and since listed year as measurements of firm age. The result of empirical analysis showed that the younger firms in Korea are likely to have a stronger relations with government-owned banks. On the other hand, the large firm groups are not likely to have a stronger relations with government-owned banks than does the small and medium firm groups.