Advertisement Marketing of Alien Insurers in American Market

Hai-ping WANG, Patricia BORN


This paper tries to find out whether alien insurers spend more on advertising than nonalien insurers in the American local insurance market. We built two models to identify different effects of advertising expenses on alien insurers and non-alien insurers, and on the underwriting performance of both insurers. The data from 1996 to 2014 was chosen to conduct regression analysis. The results show that there is no significant difference in advertising expenses between alien and non-alien insurers. Moreover, belonging to a group, young ages (newer-built companies not more than 5 years) and different product lines play significant roles in the insurers’ advertising expenses. The significant influencing factors on the performance (loss ratio) of insurers include assets, different lines of business share and commission expenses, as well as the interaction item of alien insurers and advertising expenses. Our findings indicate that alien insurers with more advertising expenses would achieve better performance than non-alien insurers in the American market.


Alien insurers, Advertising expenses, Performance


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