Search results

1 – 10 of over 3000
To view the access options for this content please click here
Article
Publication date: 11 May 2010

Tajudeen Olalekan Yusuf

The purpose of this paper is to examine how insurance brokers control opportunism at the postcontractual stage of insurance contract in the Nigerian insurance market. Such…

Abstract

Purpose

The purpose of this paper is to examine how insurance brokers control opportunism at the postcontractual stage of insurance contract in the Nigerian insurance market. Such opportunism, widely reported of insurance commercial customers, threatens the survival of the entire insurance institution while brokers' role is grossly ignored.

Design/methodology/approach

The paper involved the use of semi‐structured interviews of insurance broking executives and documentary analyses of how insurance brokers gather and pass on information between clients and insurers to control opportunism in the insurance market.

Findings

Findings suggest that the involvement of the insurance brokers from the claim notification stage, claim auditing to actual settlement and dispute mediation are instances of control over customers' opportunistic tendencies. Also, it is found that fear of reputation damage and brokers' professional way of handling clients' over‐exaggeration and suspicious claiming might considerably control insurance opportunism.

Practical implications

Involving insurance brokers in the claim settlement stage is capable of reducing insurers' claim auditing costs while guaranteeing hassle‐free claiming experience for customers and boosting the image of the insurance industry. Hence, findings are relevant for insurance companies and regulators desirous of controlling opportunism in the insurance market.

Originality/value

The paper extends the marketing role of brokers to the claim settlement stage by highlighting their potentials to control clients' opportunistic behaviours which threaten the insurance market.

Details

Journal of Financial Crime, vol. 17 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

To view the access options for this content please click here
Article
Publication date: 1 January 1997

David Deakins, Andrew Paddison and Patrick Bentley

Risk management consists of a process that involves the assessment and evaluation of risks. Identifying risks that can be reduced and risks that can be transferred…

Abstract

Risk management consists of a process that involves the assessment and evaluation of risks. Identifying risks that can be reduced and risks that can be transferred (through insurance) is part of that process. The environment for insurance affects the ability of the high technology‐based entrepreneur to engage in this process. For example, the availability of product liability cover can affect the ability to develop new products. In a combined study of Scottish and West Midlands high technology‐based small firms (HTSFs), follow‐up interviews, cases and research in the insurance industry, we found that this environment is less than perfect. There are issues in the insurance industry that can lead to problems for high technology‐based entrepreneurs. These issues are associated with the availability and search costs associated with specialized insurance. Failure rates of high technology‐based entrepreneurs, although below those of other small firms, are still high. The high cost and limited availability of specialized insurance, which is sought by the high technology entrepreneur, contributes to the difficulty of the environment and adds to the costs and/or risks faced by such entrepreneurs.

Details

Journal of Small Business and Enterprise Development, vol. 4 no. 1
Type: Research Article
ISSN: 1462-6004

To view the access options for this content please click here
Article
Publication date: 24 May 2011

Tajudeen Olalekan Yusuf

The purpose of this paper is to examine brokers' financial incentives in the Nigerian insurance market and how they balance conflict of interest which their role…

Abstract

Purpose

The purpose of this paper is to examine brokers' financial incentives in the Nigerian insurance market and how they balance conflict of interest which their role engenders. The paper aims to assess how these affect the control of opportunism of customers in the Nigerian insurance market.

Design/methodology/approach

The study involved the use of semi‐structured interviews of insurance broking executives and documentary analyses of how incentives aid the control of opportunism in the insurance market.

Findings

Findings suggest that the Nigerian insurance market operates on highly tariff incentive system which might be hampering insurance brokers' role in bridging information asymmetries to control opportunism in the market. Conflicts of interest are also real in the insurance market.

Practical implications

Findings are relevant for practitioners and regulators in addressing the restrictive remuneration system which calls for liberalisation to encourage the control of opportunism in the insurance market.

Originality/value

The study underscores how financial incentives might be utilised to balance conflict of interest which insurance intermediation engenders.

Details

The Journal of Risk Finance, vol. 12 no. 3
Type: Research Article
ISSN: 1526-5943

Keywords

To view the access options for this content please click here
Article
Publication date: 19 March 2019

Lu-Ming Tseng and Tsu-Wei Yu

The purpose of this paper is to examine the influence of disclosure of sales compensations on insurance brokers’ intention to make inappropriate product recommendations.

Abstract

Purpose

The purpose of this paper is to examine the influence of disclosure of sales compensations on insurance brokers’ intention to make inappropriate product recommendations.

Design/methodology/approach

This research examines the insurance brokers’ intention to make inappropriate product recommendations through an application of the theory of planned behavior. Surveys are used as the research instrument, and the hypotheses are tested with a between-subjects experimental design. One case of mandatory disclosure and one case of non-mandatory disclosure are compared in the research.

Findings

The results indicate that the disclosure of sales compensations is significantly associated with the subjective norms from the official authority and perceived behavioral control (PBC). The results of this study also indicate that, when the disclosure is mandatory, the PBC has a stronger effect on the insurance brokers’ intention to make biased product recommendations than dose the attitude and subjective norms. When the disclosure is non-mandatory, however, the subjective norms have a stronger effect on the insurance brokers’ intention.

Originality/value

The impacts of compensation disclosures on the financial professionals’ product recommendations have been less examined. This study could make a contribution to the literature by providing some empirical observations from the views of Taiwan’s life insurance brokers.

Details

Marketing Intelligence & Planning, vol. 37 no. 3
Type: Research Article
ISSN: 0263-4503

Keywords

To view the access options for this content please click here
Article
Publication date: 4 February 2014

Lu-Ming Tseng and Yue-Min Kang

The purpose of this paper is to explore the impacts of the size and timing of sales compensations, the management stringency of the insurer and the insurance broker's own…

Abstract

Purpose

The purpose of this paper is to explore the impacts of the size and timing of sales compensations, the management stringency of the insurer and the insurance broker's own moral views on product recommendations made by the brokers.

Design/methodology/approach

The data used in this research were gathered from life insurance broker companies in Taiwan.

Findings

The results showed that the sales compensations, perceived leniency of the insurer's underwriting and claim policy would affect the product recommendations made by the brokers.

Practical implications

Insurance brokers are one of the most important marketing channels in the insurance industry. However, using the insurance brokers to sell insurance may result in some ethical problems. For example, some insurance brokers may sell insurance to high-risk customers because the high-risk customers may prefer to buy more insurance and that means more sales compensations can be earned. The findings of this research may have some implications for insurance management and insurance regulation.

Originality/value

This study contributes to the understanding of insurance brokers' responses to adverse selection problems (high-risk customers may prefer to buy more insurance) and product recommendation decisions. The issue has been less mentioned in the financial regulation literature.

Details

Journal of Financial Regulation and Compliance, vol. 22 no. 1
Type: Research Article
ISSN: 1358-1988

Keywords

To view the access options for this content please click here

Abstract

Details

The Development of the Maltese Insurance Industry: A Comprehensive Study
Type: Book
ISBN: 978-1-78756-978-2

To view the access options for this content please click here
Article
Publication date: 1 June 2004

John Virgo and Philip Ryley

In this brief paper the authors consider the duties owed by professional indemnity insurance brokers to their insured clients. Given the prevalence of claims for financial…

Abstract

In this brief paper the authors consider the duties owed by professional indemnity insurance brokers to their insured clients. Given the prevalence of claims for financial mis‐selling this is an important issue of concern to all authorised advisers. Any failure to obtain or maintain cover leading to uninsured loss will naturally attract the potential attention of the broker’s own insurers. The authors summarise what the law expects of brokers in standard situations.

Details

Journal of Financial Regulation and Compliance, vol. 12 no. 2
Type: Research Article
ISSN: 1358-1988

Keywords

To view the access options for this content please click here
Article
Publication date: 1 February 1980

Richard M.S. Wilson

In this introductory overview an indication of the range of financial services that is available will be presented, along with some examples of marketing practices in…

Abstract

In this introductory overview an indication of the range of financial services that is available will be presented, along with some examples of marketing practices in relation to these services and some observations about some of the suppliers of financial services. This coverage will then be followed by a brief review of research in the field of financial services marketing, a note on careers in this field, and a summary of courses in the field.

Details

Managerial Finance, vol. 5 no. 3
Type: Research Article
ISSN: 0307-4358

To view the access options for this content please click here
Case study
Publication date: 20 January 2017

Robert D. Dewar

Key State Blue Cross and Blue Shield Plan (a disguised case of an actual BCBS Plan) is the merged product of three state plans. Initially burdened with a reputation of…

Abstract

Key State Blue Cross and Blue Shield Plan (a disguised case of an actual BCBS Plan) is the merged product of three state plans. Initially burdened with a reputation of poor customer service, Key State's executives decided to invest heavily in service improvement, eventually achieving superior levels. Key State's high-quality customer service emerged as a true competitive advantage for its customers, who were primarily businesses and health benefits consultants who influenced corporate purchasers of health insurance. The Key State brand came to be synonymous with personal service, security, choice, and dependability. But the health care insurance market was changing under Key State's feet. Spiraling costs meant that high-quality service became less of a competitive advantage as employers were lured by low-cost, low-service providers. Many employers cut or dropped health care benefits entirely, swelling the ranks of the under- and uninsured, who in turn were extremely price-sensitive when shopping for health insurance on their own. Finally, the health care insurance market was being revolutionized by financial institutions willing to hold health benefit accounts and pay providers directly, thereby eliminating the need for Key State as a mediator. Key State executives were aware of these changes but were challenged by the mindset, culture, and organizational design custom-fit to their business accounts. The case asks the reader to consider whether Key State has the right number of target markets, whether it should have one brand or several for its different target markets, what it should do for the uninsured, and how it should improve its brand experience in light of the industry's changing landscape. All of these decisions will have significant implications for the organizational design of Key State.

To better understand the challenges involved in a successful health insurance company to cope with a rapidly changing and unpredictable environment; to formulate a new strategy and a new organizational design to accomplish this adaptation.

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

Keywords

To view the access options for this content please click here
Article
Publication date: 3 October 2016

Isaac Akomea-Frimpong, Charles Andoh and Eric Dei Ofosu-Hene

This paper aims to measure the extent of effects of insurance fraud on the financial performance of insurance companies in Ghana. It also examines the causes and stringent…

Abstract

Purpose

This paper aims to measure the extent of effects of insurance fraud on the financial performance of insurance companies in Ghana. It also examines the causes and stringent measures that can be used to fight against insurance fraud.

Design/methodology/approach

Primary and secondary data obtained from 39 insurers in Ghana are used in this paper. A multiple regression model is used to determine the relationship between financial performance and insurance fraud variables.

Findings

The results from the model indicate that statistically insurance fraud has a significant negative effect on the annual return on assets (financial performance) of insurers in Ghana. Also, weak internal controls, poor remuneration of employees, falsified documents, deliberate acts of policyholders to profit from the insurance contract and inadequate training for independent brokers are found to be the major causes of insurance fraud in Ghana. To deter insurance fraud, effective internal fraud policy, rigorous assessment of insurance policies and claims, adequate training for independent brokers on insurance fraud and modern information technology tools are paramount in fighting this menace in Ghana.

Research limitations/implications

These findings are to have substantial impact on the techniques insurance companies will develop to fight insurance fraud and the policies that will be developed by governments and national insurance regulatory bodies to fight this menace.

Originality/value

The main value of this paper is the determination of the key variables that constitute insurance fraud and their impacts on the annual financial performance of insurance companies in Ghana.

Details

Journal of Financial Crime, vol. 23 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

1 – 10 of over 3000