An Empirical Study on the Factors of Affecting Sales Channel Adoption in Taiwan Life Insurance Industry

• Main Authors: Chang, Kuang-Yu, 張光宇
• Other Authors: Wang, Sue-Fung
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/42056864060151134880

碩士 === 國立交通大學 === 管理學院財務金融學程 === 101 === This article aims to find out factors which affect life insurance companies channel adoption in Taiwan by logistic regression. The 112 observations employed in this paper are collected through 28 life insurance companies in Taiwan from year 2009 to 2012. The study divides dependent variable into direct or indirect channel and set two groups of independent variables to measure their influence. The first group called product variable includes traditional life policy, accident and health policy, investment linked policy, and annuity. Another group called financial variable includes size, new business expense ratio, investment return ratio, and risk based capital ratio. Two dummy variables, foreign and financial holding company subsidiary, are considered within financial variable as well. The conclusions are drawn as follows. (A) Companies with higher sales ratio of accident and health policy, investment linked policy, and annuity are more likely to use indirect channel. (B) Companies with bigger size and higher new business expense ratio are more likely to use direct channel. A positive relation between financial holding company subsidiary and indirect channel is confirmed. (C) If measuring two groups of variables influence at the same time, the connections between annuity sales ratio, financial holding company subsidiary, and company size and channel adoption are still significant as measuring influence by individual group. (D) Financial variables connections with channel adoption are more stable than product variables connections.