| dc.description.abstract | Financial holding companies’ niche is the cross-selling of their own financial products. While performing cross-ownership, the financial-related businesses focus on three synergistic purposes, namely cross selling, cost saving, and capital efficiency. According to these synergistic purposes, the main issue of financial holding companies is to cross-integrate products and services (say banking, securities, insurances, funds, etc.) in order to boost business.
C company, affiliate operating insurance business of C financial holding, is the foremost of insurance industry in Taiwan. C company possesses large customer base and sophisticated business management, further, both division cover rate and valid policy market share are champion in the competitive insurance market of Taiwan. This paper tries to study the impact of life insurance affairs while firms are going to implement cross-selling, and, since C company is the bellwether of the industry in Taiwan, we select C company to be the research sample. In this paper, we apply the methodology of data envelopment analysis (DEA) to survey relative efficiency, and the output variables acquired from 2006 efficiency analysis table include life insurance efficiency ability, life insurance average document, product insurance efficiency ability, and credit card achievements rate.
C company owns 277 footholds which spread all over Taiwan. In accordance with business model, C has two operating patterns: one is specialized organization responsible for solicitations; the other is popularized organization responsible for collecting insurance premium. Furthermore, under these two business models, C company has 21 districts. Based on the above categorizations, we develop three empirical models, namely life insurance efficiency model, cross-selling efficiency model, the whole efficiency model. Our studying is trying through above 3 models to find out whether C company’s operating efficiency has difference or not under different business models and districts.
Moreover, we try to find out the relationship between efficient ratings and influence factors by tobit regression. Through tobit regression, one could obtain the weights of related factors under the circumstances of none reference resource. Besides, under different business models and districts, rank order test is used to compare relative efficiency among the three empirical models. The findings are:
1. Efficiency ratings exist significant differences between business models.
2. Implementing cross-selling operation would boost the business of life. Insurance.
3. Efficiency ratings exist significant differences among districts. | en_US |