The Impact of Macroeconomic Factors on Investment-Oriented Insurance Premium Revenue in Taiwan Bancassurance

• Main Authors: Hsu-Hsing Lu, 呂旭星
• Other Authors: Hsin-Hong Kang
• Format: Others
• Language: en_US
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/03856402513826000694

碩士 === 國立成功大學 === 國際管理碩士在職專班 === 97 === The financial holding company (FHC) is a rapidly developing bancassurance business in Taiwan, as consumers are gradually becoming more conscious of which bank is more reliable, authentic and convenient. Not only can the bancassurance channel provide synergies to FHC but it can also regularly bring profit from financial product revenue income. The competitive strength of bancassurance has become the most important resource of insurance policies and new market channels in Taiwan. Through insurance policies, consumers can not only provide fundamental insurance interest but can also expect to earn profits. Thus, conventional life insurance cannot satisfy consumers’ needs. The brand-new policy insurance product ‘investment-linked insurance’ has thus been generated, and occupies a high percentage of the market-share worldwide. The motivation of this research is to conduct a comparative analysis on Taiwan’s macroeconomic database including: Nation Income (NI), Unemployment Rate (UR), Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX), Wholesale Price Index(WPI), Consumer Price Index (CPI), Personal Saving rate(PSR) , Interest Rate (IR) and Foreign Exchange Reserves(FER). The initial stage will introduce the history of the investment-linked insurance policy and establish a research structure through regression analysis to explain how the macroeconomic database variables influence the sales volume of the investment-linked insurance policies. The aim of this research is to advise Financial Holding Companies on how to frame its strategy under today’s arduous circumstances; the financial insurance industry has immense influence on our country’s economic development, and under the economic recession of today the importance of the above topic is high. According to the final series of tests we obtained the simultaneous equation regression model that shows the estimated coefficients for the macroeconomic variables National Income and Taiwan Stock Exchange Capitalization Weighted Stock Index have positive correlations, while Unemployment Rate, Consumer Price Index, and Interest Rate demonstrated have negative correlations with Investment-Oriented Insurance Premium Revenue.