A Study of the Influence of Bancassurance to Life Insurance Industry Performance

• Main Authors: Hsin-Chin Hung, 洪辛金
• Other Authors: Chin-Shien Lin
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/69128974981516544941

碩士 === 中興大學 === 高階經理人碩士在職專班 === 95 === Abstract The multi-industries marketing over the various businesses tends to be the trend in the future when Financial Holdings start to integrate banks, insurances, funds and some of those financial products as a whole since the pass of the Financial Holding Act back in 2001. As a result, the banks of the integration are more important to those of insurance companies. Up to end of 2006, the overall income of insurances by the banking agents was about 35% of the insurance industry in Taiwan, which could be a positive influence for running the insurance business or just a blinking sight of situation for the banks in order to maintain the market share. The research throughout the empirical studies is aimed to find out the influences of efficiency between running the insurance business and the participation of the insurances. With the method of Data Envelopment Analysis (DEA), this research takes 22 insurance companies in Taiwan as examples to analyze the efficiency of running the business during the period of year 2001 and 2006. Then again, tried to find out the reasons what will influence those efficiencies of the insurance companies throughout the Tobit recursive analysis after all. The production efficiency (PE) of overall insurance industry in Taiwan is only 68.8% but raise up from year to year as found. During the research, we found the scale efficiency (SE) is much more ineffective than the pure technical efficiency (TE), which is the because of the raise of pure TE and SE gradually from year to years. With the Tobit recursive analysis, it reveals that banking insurance really helps the PE and pure TE in positive. In the research, it tells me that government gives the way to more freely use the capital by businesses helps the running efficiency of the business due to the positive relation was found between the investment percentages of risky products and the PE and pure TE. But it goes negative between the participating period and pure TE and SE, which tells that the longer the insurance company sustained, the more dependent the insurance company to the banks. The product concentration goes negative as well as the pure TE as found, which reveals that multi-products could help the business running efficiency. The pure TE of local companies is basically lower than those of foreign ones, and the SE is higher instead, which is because of the less understanding of Taiwan market. The market share of the first year insurance collection is positive to pure TE that tells the higher market share, the better the efficiency as found.