The Impact Of Channel On Corporate Performance In Automobile Insurance Market

Imperfect insurance market prompts the insurance intermediaries. Insurance market with asymmetric information and participation cost forms the objective conditions for the existence of insurance intermediaries and promotes the development of insurance intermediary market. And insurance intermediaries promotes the development of the insurance market and the progress, with the scale, specialization and reputation reducing the searching and matching cost between policy-holder and insurance company and the asymmetric information, at the same time reducing the policy-holder degree of risk to a certain extent and improving the efficiency of market as a whole. At present, multi-channel coexists in the insurance market of channel and insurance intermediaries and direct channel of insurance company constitute the system of insurance marketing channel. However, channels of insurance market still not perfect, among them, the degree of scale, specialization, reputation, the transaction cost, information cost and so on are all different making each channel influence corporate performance in different degree.How to measure the impact of channel on corporate performance? The key lies in how much insurance channels reduce cost and increase profits. This article will use micro-data to study the impact of channels on corporate performance in automobile insurance market. Using the theory of search - match we discuss why multi-channel coexists in insurance market around the market imperfect theory and product quality theory. On the basis of analyzing the channel acts on the information asymmetry we further clarify the effect of channel on risk which affect compensation and ultimately prove channels affect insurance company profits. The empirical analysis tests whether channels affect information asymmetry, risk and profit. Then according to the empirical results, this paper puts forward the channel selection and related suggestions to construct of channel system for insurance company. Main content of this article as follows:The first chapter is introduction. On the basis of introducing the research background, we point out the research object in this paper including research ideas and the main research content.Combining the theory of mediation, search matching model, this paper states the intermediary role and lead to research significance. We put forward the regression model to test the impact of channel on corporate performance. Compared with the existing research results, we sum up the innovation of this article and put forward the weakness according to the limitations of article research.The second chapter is literature review. According to the research contents, we summarize the literature at home and abroad.The third chapter states the theory of channels of car insurance and the insurance company performance and sums up how channels influence corporate performance.The fourth chapter explains the data, sets variables and makes the descriptive statistics for each variable.The fifth chapter empirically tests tthe influence of channel on information asymmetry in automobile insurance market.The sixth chapter empirically tests whether the channels affect profits.The seventh chapter empirically tests whether channels influence profits in order to prove the influence of channel on corporate performance in automobile insurance market.The eighth chapter of the full text summarizes and suggestions confirms the impact of channel on corporate performance in automobile insurance market and compares channels. And on this basis, put forward the advice on how to choose channels and build a channel system for insurance company.The conclusion of this paper as follows:(1) Using qualitative analysis method we theoretically analyze how the channels act on corporate performance. (2) This article uses the regression model of classification to state channels have influence on asymmetric information. (3) With regression model containing category variable to examine the influence of channel acting on risk, results show that there are different risks under different channels. But only in the study of this article, it's unable to distinguish the impact acting on frequency or degree of risk, risk, or both. (4) With regression model containing categorical variable, we test that the channels affect comprehensive cost, comprehensive charge and profit.The results show that the difference exists in different channels on comprehensive cost, comprehensive cost and profits to prove the channels influence profits.Compared with the existing research achievements of domestic and foreign, the innovation of the paper as follows:First, there is few literature from the angle of auto insurance market channel to research its impact on corporate performance. And this article analyzes how channels act on corporate performance by affecting asymmetric information and risk in order to prove the impact of channel on corporate performance in auto insurance market.Secondly the empirical test in the first time use micro data with each insurance policy as the analysis object to study the effect of channel on corporate performance in auto insurance market.