Determinants of Electronic Integration in the Insurance Industry An Empirical

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Determinants of Electronic Integration in the Insurance Industry An Empirical
Akbar Zaheer
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, high levels of electronic integration) are less likely to be provided with this incentive. Alternatively (as we elaborate later) it could be that the monitoring functionalities embedded within the lOS enable the focal carrier to entrust underwriting authority to even the less electronically-integrated agents. In the discussion below, we suggest that the latter explanation is more compelling. However, in the absence of intertemporal data on changes in electronic integration and trust, we canno...t discriminate among such competing explanations except in a speculative manner.
Limitations and the Need for Cross-Validation. The generalizability of these empirical results, especially the absence of effects of transaction costs determinants is limited by the use of a single dataset and first-cut operationalizations of the constructs. The robustness of results could be increased if at least parts of the model are replicated in a complementary setting. To achieve this objective, we discuss below tests carried out in a second setting using a random sample of 64 independent agents electronically-interfaced with carriers for personal lines business.


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