Preprint Article Version 1 This version is not peer-reviewed

The Customer-Oriented Service of Spanish Brokers in the Insurance Industry: The Advice Service of the Distribution Channel Bancassurance

Version 1 : Received: 21 January 2020 / Approved: 24 January 2020 / Online: 24 January 2020 (10:36:31 CET)

How to cite: Latorre Guillem, M.Á. The Customer-Oriented Service of Spanish Brokers in the Insurance Industry: The Advice Service of the Distribution Channel Bancassurance. Preprints 2020, 2020010275 (doi: 10.20944/preprints202001.0275.v1). Latorre Guillem, M.Á. The Customer-Oriented Service of Spanish Brokers in the Insurance Industry: The Advice Service of the Distribution Channel Bancassurance. Preprints 2020, 2020010275 (doi: 10.20944/preprints202001.0275.v1).

Abstract

This research focuses on the customer orientation of insurance brokers, whose activity is regulated by the Law of 26/2006 of July 17 on the mediation of private insurances and reinsurances. The goal is to ascertain whether the intermediation inherent in the insurance broker’s activity, which implies a customer-oriented service, entails a positive behaviour that transcends the immediate environment, reaching society. This study presents a comparative analysis between the insurance brokerage society, characterised by providing a personalised customer service, and banks’ advisory services on insurance. To this end, we study the evolution of the total volume of business and new production, compared for a portfolio of insurance products. The results presented in this research suggest that the customer values the advisory service provided by the broker. However, for a particular business segment in standardised insurance products and products related to banking assets, customers are more likely to resort to the bank’s services. In addition, the results indicate that the commission percentages applied by the entities operating in the banking insurance channel exceed those perceived by the insurance broker. With all this, intermediation in the development of the insurer’s activity can entail an ethical and social behaviour that involves customer-orientation and, possibly, social service, which does not always benefit the insurer.

Subject Areas

customer- oriented service; behaviour; distribution channel; commissions and fees; objective and subjective advice; sustainable insurance brokerage

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