Being good might be good for a life insurer’s bottom line, according to the authors of a study released today.
The study, “The Economic Consequences of Voluntary Quality Certification Programs,” was conducted by Robert Klein and Martin Grace of Georgia State University’s Center for Risk Management and Insurance Research.
The researchers analyzed the economic value of membership in the Insurance Marketplace Standards Association, Bethesda, Md., for insurers that join IMSA.
On average, IMSA member companies have higher ratings, lower costs and more efficient operations, the researchers conclude.
The cost efficiencies include “lower costs of regulatory compliance and lower expenses,” Grace says.