Show Less
Restricted access

Valuation and Value Creation of Insurance Intermediaries


Claudia Max

The book offers a comprehensive analysis of insurance intermediaries from a capital markets perspective. It presents an up-to-date market perspective, drawing the attention to the important trends and developments in the industry and recommends strategies to secure future growth. Further, it offers a detailed description of a valuation approach specifically tailored to small and mid-sized brokers. Research on insurance intermediary M&A reveals that positive abnormal returns are achieved for acquirers. The author points out which factors lead to value creation and investigates performance drivers in the tied agent channel.
Show Summary Details
Restricted access

5 Performance Transformation in the Tied Agent Channel: Achieving a step-change in Tied Agent Productivity


5.1 Introduction

Once considered an out-of-date sales channel condemned to lose market share, tied agent organizations today are still the largest sales channel in most European countries (Blair, Herndon 1994, p. 283–285; Regan 1997, p. 41–42; Anderson et al. 1998, p. 639–640; McGranahan 2013). There are multiple reasons for this: tied agents meet customers’ needs for personal and competent advice, particularly as insurance products grow increasingly complex. Furthermore, they provide the insurer with information on customers’ expectations and competitors’ activities; they contribute to stability; and, as an in-house organization, have advantages over the broker channel, e.g., in terms of controllability and brand delivery (Marvel 1982; Schmitz 2002, p. 56–68). Agents are the interface between the insurer and the customer and contribute materially to a company’s reputation and awareness ratings (Eickenberg 2006, p. 28; Goergen 2007, p. 188). Finally, tied agents’ client relationships and knowledge make them a well-established connector between customers’ demand for online and offline offerings.

Despite these advantages and the channel’s dominance, however, tied agent sales forces face a large number of structural challenges:

You are not authenticated to view the full text of this chapter or article.

This site requires a subscription or purchase to access the full text of books or journals.

Do you have any questions? Contact us.

Or login to access all content.