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I need help creating a thesis and an outline on The Economics of Insurance Intermediaries. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required.
I need help creating a thesis and an outline on The Economics of Insurance Intermediaries. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. These people are basically underwriters to the insurer. they actually do the matchmaking between the policyholders and the insurer. The market is going through constant changes in its framework and organization. This entails changes in the way in which consumers transact the commodities in the insurance market. Different networks vary in their nature and the insurers use various kinds of channels to market the products. The Internet, banks, companies and agents lead these networks. (Dumm and Hoyt, 2002)
Insurance is a complex process of compensation payments to the policyholders based on certain conditions. The policy holder’s decision is based on the price of the product, the range of coverage offered by the policy, the risk factor entailed and last but not the least factor the market reputation of the policy in settling the claims.
The “market-making ‘ role played by intermediates are complex where the right set of policyholders can be selected from the market having the right financial credibility, risk-taking attitude and skills. The insurer getting the right people with the right mindset can invest in assets creating deals. (Cummins, 2006, p.359)
Taking an instance from the European Union markets, we may find that there is no regulated and well functioning market in European Union. Countries like France and Germany have tried to introduce a liberal structure in the industry and in the process the markets were deregulated. However competition persists rigorously among the individual markets with respect to price and differentiation of the products. This incidence of differentiation of products brings about two kinds of impact. First, consumers can find their respective choice with more options available before them and second there is less clarity in the market and hence insurance companies might reap gains, which are monopolistic in nature. In this context, the welfare of consumers comes down.
