Show Less
Restricted access

Valuation and Value Creation of Insurance Intermediaries

Series:

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

6 Summary and Concluding Remarks

Extract



To sum up, this doctoral thesis provides comprehensive insights into the business model and market of insurance intermediaries and proposes a modified approach for their valuation. It further identifies value drivers in M&A and performance determinants in their regular operations. Lastly, it embeds the determined performance drivers in a 4-step transformation program that has the goal to substantially and sustainably lift agency channel performance.

In detail, the thesis elaborates the following results to the research questions raised in the introductory chapter:

∎ The second chapter gives a clear definition and business model description of the three different types of insurance intermediaries: (i) tied agents, (ii) multi-tied agents, and (iii) brokers. It shows that insurance intermediaries are of significant importance in most European countries as well as in North America. The top of the intermediary market is consolidated through the top global brokers. The market in its entirety, however, is extremely fragmented and to a large extent made up of very small one-person businesses. Finally, the chapter describes the wide range of industry developments that affect insurance intermediaries: economic pressure, sharpened regulation, changed customer behaviour, move to multi-channel, digitization, loss of traditional important product categories, as well as several operational and 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.