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Comparing Single- and Multichannel Distribution Strategies in the German Life Insurance Market: An Analysis of Cost and Profit Efficiency

  • Distribution Systems
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Schmalenbach Business Review Aims and scope

Abstract

To explain the success of different distribution strategies in the life insurance industry, we analyze the performance of single- and multichannel distribution firms in the german life insurance industry. We estimate cost and profit efficiency for three groups of life insurers: multichannel insurers, direct insurers, and independent agent insurers. We use nonparametric data envelopment analysis to calculate efficiencies for german life insurers for the years 1997–2005. We identify the absence of performance advantages of specialized insurers as the most important reason for the coexistence of different distribution systems.

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Authors and Affiliations

  1. Institute of Economics, University of Rostock, Germany

    Lucinda Trigo-Gamarra

  2. University of Cologne and Martin Luther University Halle-Wittenberg, Germany

    Christian Growitsch

Authors
  1. Lucinda Trigo-Gamarra
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  2. Christian Growitsch
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We thank two anonymous referees for helpful comments and suggestions.

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Trigo-Gamarra, L., Growitsch, C. Comparing Single- and Multichannel Distribution Strategies in the German Life Insurance Market: An Analysis of Cost and Profit Efficiency. Schmalenbach Bus Rev 62, 401–417 (2010). https://doi.org/10.1007/BF03396813

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  • DOI: https://doi.org/10.1007/BF03396813

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