@article{ART002410531},
author={Lee Kyonghee and Chulkyung Ahn},
title={Effects of Channel Diversification on New Contracts in Life Insurance Companies},
journal={Journal of Insurance and Finance},
issn={2384-3209},
year={2018},
volume={29},
number={4},
pages={3-34},
doi={10.23842/jif.2018.29.4.001}
TY - JOUR
AU - Lee Kyonghee
AU - Chulkyung Ahn
TI - Effects of Channel Diversification on New Contracts in Life Insurance Companies
JO - Journal of Insurance and Finance
PY - 2018
VL - 29
IS - 4
PB - Korea Insurance Research Institute
SP - 3
EP - 34
SN - 2384-3209
AB - This paper examines the performance of monthly initial premiums and channel diversification across a sample of life insurers that operate in solicitors (exclusive agents) organization from 2007 to 2016. While the size of registered solicitors decreased by 1.7% per year, the size of active solicitors decreased by 3.3% during the same period. The active rate of solicitors was around 61.0% in 2016.
As the life insurers' dependence on new business has diversified into various channels such as independent agency (GA), bancassurance, and direct channels, the share of solicitors has dropped from 62.5% in 2007 to 42.6% in 2016.
Despite the downsizing of solicitors, exclusive agents are still an important factor for new business. Panel fixed effect models represent that the overall performance of new contracts increases by 0.537% when the size of active solicitors increases by 1%. As the share of whole-life insurance products increases, the degree of channel diversification decreases, indicating a significant relationship between the product portfolio and the channel strategy.
KW - Sales Channel;Tied Agents;Diversification of Sales Channels
DO - 10.23842/jif.2018.29.4.001
ER -
Lee Kyonghee and Chulkyung Ahn. (2018). Effects of Channel Diversification on New Contracts in Life Insurance Companies. Journal of Insurance and Finance, 29(4), 3-34.
Lee Kyonghee and Chulkyung Ahn. 2018, "Effects of Channel Diversification on New Contracts in Life Insurance Companies", Journal of Insurance and Finance, vol.29, no.4 pp.3-34. Available from: doi:10.23842/jif.2018.29.4.001
Lee Kyonghee, Chulkyung Ahn "Effects of Channel Diversification on New Contracts in Life Insurance Companies" Journal of Insurance and Finance 29.4 pp.3-34 (2018) : 3.
Lee Kyonghee, Chulkyung Ahn. Effects of Channel Diversification on New Contracts in Life Insurance Companies. 2018; 29(4), 3-34. Available from: doi:10.23842/jif.2018.29.4.001
Lee Kyonghee and Chulkyung Ahn. "Effects of Channel Diversification on New Contracts in Life Insurance Companies" Journal of Insurance and Finance 29, no.4 (2018) : 3-34.doi: 10.23842/jif.2018.29.4.001
Lee Kyonghee; Chulkyung Ahn. Effects of Channel Diversification on New Contracts in Life Insurance Companies. Journal of Insurance and Finance, 29(4), 3-34. doi: 10.23842/jif.2018.29.4.001
Lee Kyonghee; Chulkyung Ahn. Effects of Channel Diversification on New Contracts in Life Insurance Companies. Journal of Insurance and Finance. 2018; 29(4) 3-34. doi: 10.23842/jif.2018.29.4.001
Lee Kyonghee, Chulkyung Ahn. Effects of Channel Diversification on New Contracts in Life Insurance Companies. 2018; 29(4), 3-34. Available from: doi:10.23842/jif.2018.29.4.001
Lee Kyonghee and Chulkyung Ahn. "Effects of Channel Diversification on New Contracts in Life Insurance Companies" Journal of Insurance and Finance 29, no.4 (2018) : 3-34.doi: 10.23842/jif.2018.29.4.001
