Insurance Intermediation

An Economic Analysis of the Information Services Market

  • Martina Eckardt

Part of the Contributions to Economics book series (CE)

Table of contents

About this book


Insurance intermediaries can help consumers to economize on information and transaction costs in insurance markets. However, competing intermediaries provide heterogeneous information services, which are difficult to assess by incompletely informed consumers. Conduct and performance in the market for insurance information services are analyzed by applying search theoretical and industrial organization approaches. Based on a sample of 927 insurance intermediaries, the factors that affect the quality of the information services provided by them are studied empirically. The results obtained support the main hypotheses derived from industrial organization theories as to the poor working of quality competition under incomplete and asymmetric information on the side of consumers. Thus, public policy should concentrate on increasing transparency about intermediaries’ (in-)dependence from insurance companies and improve consumers’ financial literacy to raise the overall quality in the information services market.


Asymmetric Information Industrial Organization Information Intermediation Insurance Market Intermediated Search Personal Search

Authors and affiliations

  • Martina Eckardt
    • 1
  1. 1.Faculty of Management and EconomicsWitten/Herdecke UniversityWittenGermany

Bibliographic information

  • DOI
  • Copyright Information Physica-Verlag Heidelberg 2007
  • Publisher Name Physica-Verlag HD
  • eBook Packages Business and Economics
  • Print ISBN 978-3-7908-1939-7
  • Online ISBN 978-3-7908-1940-3
  • Series Print ISSN 1431-1933
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