European Insurance Markets: Recent Trends and Future Regulatory Developments

Klumpes, Paul J. M.; Fenn, Paul; Diacon, Steven; O’Brien, Christopher; Yıldırım, Canan

doi:10.1007/978-0-387-34163-7_16

Cited by 6 publications

(4 citation statements)

References 8 publications

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“…Financial capital can be regarded as the main input used to provide insurance services (see Diboky & Ubl, 2007; Jeng et al, 2007; Klumpes, 2007; Erhemjamts and Leverty, 2010). Cummins and Weiss (2000) pointed out the inclusion of financial capital is consistent with the modern theory of the firm, and the theory indicated that the contractual relationship (between capital supplier and the firms) was the part of firm's technology.…”

Section: The Uk Insurance Datamentioning

confidence: 99%

Measuring the efficiency and productivity of U.K. insurance market

et al. 2023

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The U.K. insurance industry has a dominant international presence, suggesting strong competitiveness and performance. Yet, its efficiency and productivity has rarely being investigated. The purpose of this paper is to provide an overview of insurers' performance in the U.K. insurance market from 1996 to 2017, using stochastic frontier analysis to measure efficiency scores and productivity at the firm level. Results show the U.K. insurance industry could improve by about 40% in terms of cost efficiency and by 70% in terms of profit efficiency. In addition, our model reveals a higher cost efficiency score compared to profit efficiency, implying that there are higher inefficiencies on the income side of the insurance industry as measured by our profit function. In terms of total factor productivity (TFP) growth, we report a steady decline over time while on average is negative. By decomposing TFP growth into its underlying components, we reveal that the reported negative trend in TFP growth over time has mainly been driven by the enhanced competition that resulted in a drop in markup, while the scale and cost efficiency has also driven TFP growth down. However, from a positive point of view, we report evidence of both β‐convergence and σ‐convergence in cost and profit efficiency.

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Section: The Uk Insurance Datamentioning

confidence: 99%

Measuring the efficiency and productivity of U.K. insurance market

et al. 2023

View full text Add to dashboard Cite

show abstract

“…Financial capital can be regarded as the main input used to provide insurance services (see Diboky & Ubl, 2007;Jeng et al, 2007;Klumpes, 2007;Erhemjamts and Leverty, 2010). Cummins and Weiss (2000) pointed out the inclusion of financial capital is consistent with the modern theory of the firm, and the theory indicated that the contractual relationship (between capital supplier and the firms) was the part of firm's technology.…”

Section: The Uk Insurance Datamentioning

confidence: 99%

Measuring the Efficiency and Productivity of the UK Insurance Market

Mamatzakis,

Staikouras,

triantopoulos

et al. 2023

SSRN Journal

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“…The premium cannot represent the output because it is the value of quantity times price (Yuengert, 1993). The output of intermediation services is proxied by investment income as stated by Diacon et al (2002), Klumpes (2007), and Alhassan & Biekpe (2016). The selected variables (both for input and output) for DEA estimation are informed in Table 2.…”

Section: Output Choicementioning

confidence: 99%

Market share and efficiency: Causality test in Indonesian general insurance industry

Jamil

Setiawan

2023

JESP

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This study aims to analyze the relationship between market share and technical efficiency in the Indonesian general insurance industry. The data for the period 2010-2020 is used, which was obtained from the Indonesian Financial Services Authority (OJK). The results show that efficient companies emerged from the category of industry possessing comparatively higher and lower market shares. Furthermore, the panel Granger-causality test indicates a one-way direction of causality, where only the market share has an impact on the technical efficiency score. The panel regression using the Feasible Generalized Least Square (FGLS) model shows that market share has a negative impact on technical efficiency scores. Other variables, such as the age of the industry, merger, and acquisition are listed in the stock exchange and do not have a significant effect on the efficiency score. Based on the aforementioned findings, it can be inferred that the quiet-life hypothesis is applicable within the Indonesian general insurance sector. Consequently, the government must foster competition among the businesses operating within the industry.

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European Insurance Markets: Recent Trends and Future Regulatory Developments

Cited by 6 publications

References 8 publications

Measuring the efficiency and productivity of U.K. insurance market

Measuring the efficiency and productivity of U.K. insurance market

Measuring the Efficiency and Productivity of the UK Insurance Market

Market share and efficiency: Causality test in Indonesian general insurance industry

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