A new version of this entry is available:
Loading...
Article
2023
Lowering acquisition costs with a commission cap? Evidence from the German private health insurance market
Lowering acquisition costs with a commission cap? Evidence from the German private health insurance market
Abstract (English)
When consumers are neither particularly financially literate nor price sensitive, insurers have a strong incentive to pay high commissions to intermediaries for profitable new business. As a part of cost reduction regulation in the German private substitutive health insurance market, a commission cap and a minimum cancelation liability period for insurance intermediaries were introduced in 2012. Despite the fact that the commission cap lowered commissions paid to intermediaries, we provide evidence that the reform was only partly effective, as it led to a decrease in reshuffling of new business in the substitutive market, but did not significantly reduce total acquisition costs of health insurers. Our findings confirm that cost regulation is tricky and can be easily circumvented by insurers, as commission payments are only a part of total acquisition costs.
File is subject to an embargo until
This is a correction to:
A correction to this entry is available:
This is a new version of:
Other version
Notes
Publication license
Publication series
Published in
The Geneva risk and insurance review, 50 (2023), 2, 168-204.
https://doi.org/10.1057/s10713-023-00091-4.
ISSN: 1554-9658
London : Palgrave Macmillan UK
Other version
Faculty
Institute
Examination date
Supervisor
Cite this publication
Braegelmann, K. A., & Schiller, J. (2023). Lowering acquisition costs with a commission cap? Evidence from the German private health insurance market. The Geneva Risk and Insurance Review, 50(2). https://doi.org/10.1057/s10713-023-00091-4
Edition / version
Citation
DOI
ISSN
ISBN
Language
English
Publisher
Publisher place
Classification (DDC)
360 Social problems and social services
Collections
Original object
University bibliography
Free keywords
Standardized keywords (GND)
Sustainable Development Goals
BibTeX
@article{Braegelmann2023,
doi = {10.1057/s10713-023-00091-4},
author = {Braegelmann, Kylie A. and Schiller, Jörg},
title = {Lowering acquisition costs with a commission cap? Evidence from the German private health insurance market},
journal = {The Geneva risk and insurance review},
year = {2023},
volume = {50},
number = {2},
pages = {168--204},
}