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How Insurance Brokers Create Value—A Functional Approach
Author(s) -
Maas Peter
Publication year - 2010
Publication title -
risk management and insurance review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.386
H-Index - 16
eISSN - 1540-6296
pISSN - 1098-1616
DOI - 10.1111/j.1540-6296.2009.01176.x
Subject(s) - intermediary , business , value (mathematics) , marketing , database transaction , multinational corporation , perspective (graphical) , customer needs , customer value , transaction cost , economics , finance , microeconomics , computer science , profit (economics) , machine learning , artificial intelligence , programming language
Fundamental changes in the market make it necessary for insurance intermediaries to continuously redefine their roles. This study concentrates on a customer perspective of the future role of insurance brokers, using the theoretical foundations of the customer value approach. Findings from 20 in‐depth interviews with leading managers of various types of multinational companies are supplemented with the results from interviews conducted with representatives of intermediaries and insurers. From this study it can be concluded that, depending on the customer's individual situation, brokers will assume one of four functions, the choice of which will be highly dependent on the degree of innovation and individualization desired. The investigation shows that although traditional transaction‐oriented services will continue to be important, there will be a shift toward tailor‐made solutions with an emphasis on consulting services, a situation that will require brokers to acquire new skills so as to be able to meet customer needs.