The choice of insurance distribution system is examined from a transaction cost analysis perspective. Under independent agency, the agent's ownership of the customer list gives that agent incentives to perform some activities that would be more costly under a more vertically-integrated system....

Tobit regression is used to analyze market shares for a cross section of 273 insurers operating in 1990. Lines of business analyzed include personal auto liability and physical damage insurance, homeowners’ multiperil, commercial general liability, workers compensation, and commercial...