Abstract
This research investigates the effects of the over-the-counter (OTC) sales at banks on individual annuity markets in Japan. The ban on OTC sales of individual annuities at financial institutions was rescinded in October 2002. Deregulation is considered to have expanded the market because it began growing in FY 2001. Life insurance companies also announced that the sales of insurance policies through banks are affecting their profits. However, statistics on sales results aggregated by distribution channel have not yet been released. Thus, my empirical analysis investigates the relationships between the amount of new contracts for individual annuities provided by insurance firms and several explanatory variables, including the number of bank branches in a region, the Herfindahl index calculated using the amount of individual annuity contracts in force, rate of the elderly, prefectural income, labor force participation rate for older men, amounts outstanding of bank deposits, share of owned homes to total dwellings, amount of life insurance policies in force, and male life expectancy. The results of a panel-data analysis over a 10-year period, and including 47 prefectures and 14 major insurance firms, indicate that the number of bank branches is positively related to the amount of new contracts for several insurance companies.
Funding statement: Research funding: Japan Society for the Promotion of Science (Grant/Award Number: “24530278”).
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©2015 by De Gruyter
Articles in the same Issue
- Frontmatter
- Measuring Self-Service Technology Latent Difficulties: Insurance Decisions on Utilitarian and Hedonic Influences
- The Impact of Public Insurance on Private Insurance Demand
- Do the Over-the-Counter Sales at Banks Expand the Individual Annuity Market in Japan?
- Risk Analysis for Reverse Mortgages with Different Payout Designs
- The Fisher Hypothesis and Its Implications for Defined Benefits
- The Square-Root Rule for Reinsurance: Further Analysis and Consideration of China’s Market
Articles in the same Issue
- Frontmatter
- Measuring Self-Service Technology Latent Difficulties: Insurance Decisions on Utilitarian and Hedonic Influences
- The Impact of Public Insurance on Private Insurance Demand
- Do the Over-the-Counter Sales at Banks Expand the Individual Annuity Market in Japan?
- Risk Analysis for Reverse Mortgages with Different Payout Designs
- The Fisher Hypothesis and Its Implications for Defined Benefits
- The Square-Root Rule for Reinsurance: Further Analysis and Consideration of China’s Market