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The Cost of Life Distribution in Europe

Author

Listed:
  • Udo Klotzki

    (Friedrich-Alexander University Erlangen-Nürnberg (FAU))

  • Nadine Gatzert

    (Friedrich-Alexander University Erlangen-Nürnberg (FAU))

  • Bjoern Muenstermann

    (McKinsey & Company, Inc.)

Abstract

The cost of life distribution varies considerably across markets and channels. This is increasingly important for insurers and regulators due to the continuing low interest rate environment in Europe, which strongly affects profits. The aim of this paper is to study the distribution costs of different distribution systems/channels and markets, examine the key drivers of distribution costs and discuss future developments against the background of digitalisation and an increasing intensity of intermediary regulation. Our analysis is based on empirical data for the European insurance market. This is complemented by interviews with several industry experts. Our findings suggest that distribution costs depend on various factors and cannot be explained solely by differences in distribution channel strategies.

Suggested Citation

  • Udo Klotzki & Nadine Gatzert & Bjoern Muenstermann, 2017. "The Cost of Life Distribution in Europe," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 42(2), pages 296-322, April.
    • Handle: RePEc:pal:gpprii:v:42:y:2017:i:2:d:10.1057_s41288-016-0036-x
    DOI: 10.1057/s41288-016-0036-x
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    References listed on IDEAS

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    Cited by:

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    3. Lucia Spotorno & Ornella Moro, 2020. "Do bank-affiliated P&C insurers perform better? An empirical investigation," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 45(2), pages 225-255, April.

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