Economic Synergies across the Life and Nonlife Insurance Industries
It should come as little surprise that the operations of both the life and nonlife insurance industries contribute to the economic growth of the national markets in which they operate. While they may contribute in different ways, the similarities in their respective products, the use of comparable distribution channels, the national market’s common familiarity with both types of insurance, etc., suggest that there are likely synergies associated with the concurrent operation of the two forms of insurance. Surprisingly, the character of any such economic synergies in the insurance industry has never before been addressed. This research is the first to succinctly reveal the character of the economic synergies resulting from the concurrent operations of the two industries.
This research employs a cross-sectional format and includes over 84 countries in its data. Examining the interaction of the insurance industries and the associated changes in economic growth reveals the optimal levels of insurance industry operation with respect to economic growth. The research answers such questions as to whether national policymakers should consider promoting the growth of one insurance market or the other (or both) as a means of influencing the economic growth of a given national market. Thus, this research should have seminal importance to national policymakers in their endeavors to promote/control economic growth.
Inoguchi, M., Y. Ma, N. Pope and Y. Suzawa, 2016, Insurance Business Synergies, Economic Growth and Strategic Planning, International Journal of Business Environment (forthcoming).
Dr. Pope, former Illinois State Univeristy Professor, has more than 25 years of classroom experience in a variety of settings and levels. Prior to his current position at IIllinois State University, he taught at Bradley University, the University of New South Wales (Sydney, Australia), and the University of Wisconsin.
He has previously worked in the insurance industry (for Corroon and Black, Aon, and Chubb) for a total of four years as an underwriter, a broker and a training specialist in Aon's Tokyo operations. Dr. Pope has lived abroad for a total of five years; two years in Australia as a professor and a total of three years in various locations in Japan.
Capitalizing on his international background, his research has frequently focused on international insurance issues with an emphasis on the Asian markets, particularly that of Japan. He has also pursued research related to financial planning, extended warranties, and other topical issues such as contingent commission usage. More recently, he has been developing a stream of research focusing on issues related to instruction in higher education.