TY - JOUR
T1 - The Role of Agents and Brokers in the Market for Health Insurance
AU - Karaca-Mandic, Pinar
AU - Feldman, Roger
AU - Graven, Peter
N1 - Publisher Copyright:
© 2016 The Journal of Risk and Insurance
PY - 2018/3
Y1 - 2018/3
N2 - Health insurance markets in the United States are characterized by imperfect information, complex products, and substantial search frictions. Insurance agents and brokers play a significant role in helping employers navigate these problems. However, little is known about the relations between the structure of the agent/broker market and access and affordability of insurance. This article aims to fill this gap by investigating the influence of agents/brokers on health insurance offering decisions of small firms, which are particularly vulnerable to problems of financing health insurance. Using a unique membership database from the National Association of Health Underwriters together with a nationally representative survey of employers, we find that small firms in more competitive agent/broker markets are more likely to offer health insurance and at lower premiums. Moreover, premiums are less dispersed in more competitive agent/broker markets.
AB - Health insurance markets in the United States are characterized by imperfect information, complex products, and substantial search frictions. Insurance agents and brokers play a significant role in helping employers navigate these problems. However, little is known about the relations between the structure of the agent/broker market and access and affordability of insurance. This article aims to fill this gap by investigating the influence of agents/brokers on health insurance offering decisions of small firms, which are particularly vulnerable to problems of financing health insurance. Using a unique membership database from the National Association of Health Underwriters together with a nationally representative survey of employers, we find that small firms in more competitive agent/broker markets are more likely to offer health insurance and at lower premiums. Moreover, premiums are less dispersed in more competitive agent/broker markets.
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U2 - 10.1111/jori.12139
DO - 10.1111/jori.12139
M3 - Article
AN - SCOPUS:85006351490
SN - 0022-4367
VL - 85
SP - 7
EP - 34
JO - Journal of Risk and Insurance
JF - Journal of Risk and Insurance
IS - 1
ER -