Ethical Behaviour and Operating Performance of Insurance Broker Firms

In this research we investigate whether there is a relationship between the ethical behaviour of insurance brokers and their operating performance. Specifically, we focus on the practice of deferring the premiums charged to clients in order to invest them in short–term financial products and, as a r...

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Detalles Bibliográficos
Autores: Latorre Guillem, Miguel Ángel, Farinós, José E.
Tipo de recurso: artículo
Fecha de publicación:2015
País:España
Institución:Universidad Católica de Valencia San Vicente Mártir
Repositorio:RIUCV. Repositorio de la Universidad Católica de Valencia San Vicente Mártir
Idioma:inglés
OAI Identifier:oai:riucv.ucv.es:20.500.12466/4224
Acceso en línea:http://hdl.handle.net/20.500.12466/4224
Access Level:acceso abierto
Palabra clave:Insurance broker
Ethical behaviour
Operating performance
5312.06 Finanzas y Seguros
5311 Organización y Dirección de Empresas
7103.03 Ética Económica
Descripción
Sumario:In this research we investigate whether there is a relationship between the ethical behaviour of insurance brokers and their operating performance. Specifically, we focus on the practice of deferring the premiums charged to clients in order to invest them in short–term financial products and, as a result, gain an additional financial return to their traditional sources of income. We consider this practice to be an unethical behaviour since uninformed clients, that is, those who are not aware of the legal process of brokerage, expects the broker to immediately process the policy with the insurance company once the premium has been paid. We find that the better the performance and the larger the firm size, the worse the ethical behaviour