TITLE
"Cost Differences of Distribution Systems by Line in the
Property and Liability Insurance Industry," Journal of Insurance Issues, George B.
Flanigan, Daniel T. Winkler, and Joseph E. Johnson. October, 1993,
Vol. XVI, No. 2, pp. 59-73.
ABSTRACT
This study identifies changes in aggregate market share between 1976 and 1988 for property
and liability companies classified by distribution system. Evidence is presented that
distribution system type produces differences in relative total expense levels. Market
share changes suggest independent agency companies are most effective in lines where
claimed higher levels of service are important, such as in workers compensation and
the commercial insurance lines. The independent agency companies have been less effective
in maintaining market share in standardized lines such as homeowners and personal
automobile. In standardized lines, cost appears more important and claimed higher levels
of service and professionalism are less likely to have an impact.
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