Austrian School of Economics: does it work for life insurance sector in Central Europe?

Economic Annals-ХХI: Volume 152, Issue 7-8(1), Pages: 45-49

Citation information:
Janowski, A. (2015). Austrian School of Economics: does it work for life insurance sector in Central Europe? Economic Annals-XXI, 7-8(1), 45-49. https://ea21journal.world/index.php/ea-v152-11/

Andrzej Janowski
PhD (Engineering),
Headmaster of Banking and Insurance Department,
Higher School of Personnel Management
3a Zagorowska Str., 62-500 Konin, Poland
andrzej.janowski@utp.edu.pl

Austrian School of Economics: does it work for life insurance sector in Central Europe?

Abstract. Insurance industry is one of the most important elements of modern economies, both as a determinant of development and a source of economic crises. The presence of the latter raises many objections as to the validity of the assumptions adopted by interventionists and economic neo-classicists. Increasing level of debt and the scale of government interventions justify the supposition that most of the existing economic doctrines lost their universal character. More and more popular in the process of seeking solutions for current precarious economic situation is praxeology which stresses the importance of individuals in generating overall economic welfare. The purpose of this paper is a meta-analysis of Central Europe’s top life insurance companies researches conducted under AVIVA LTD funding in years 2005-2007 and 2011-2012, aimed at substantiating empirical validity of the Austrian School of Economics approaches in the context of life insurance market, and begin the discussion on the matter of future perspectives of high-contact institutions in the context of competitive advantages achievements. The results prove the Austrian economic concept adequacy in insurance sector which means that agents working on a commission basis are the most effective distributors for life insurance services. Also, we may underline the crucial role of insurance intermediary during the sales process, which is important for human resource department activities driven at recruiting, training and competency management within life insurance organizations, particularly in the context of Internet sales efforts.

Keywords: Life Insurance; Austrian Economics; Central Europe; Competency; Effectiveness; Human Performance; Management; Organization

JEL Classification: B13; F16; G22

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Received 18.08.2015