Impact of interest rates on the life insurance market development: Cross-country evidence

Flores, Eduardo; Carvalho, João Vinícius de França; Sampaio, Joelson Oliveira

doi:10.1016/j.ribaf.2021.101444

Cited by 7 publications

(6 citation statements)

References 33 publications

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“…Diante da relevância do mercado segurador, seja pelo significativo crescimento, seja pela importância promovida para a sociedade e para a economia (Balcilar, Gupta, Lee, & Olasehinde-Williams, 2020;Flores, Carvalho, & Sampaio, 2021;Pradhan, Arvin, Norman, Nair, & Hall, 2016), faz-se importante entender as condições sob as quais o mercado é organizado (Altuntas & Rauch, 2017;Chidambaran, Pugel, & Saunders, 1997) e seus reflexos sobre os prêmios e a lucratividade dos diferentes ramos do mercado segurador no Brasil.…”

Section: Introdução Introduçãounclassified

Efeitos Longitudinais da Concentração Setorial sobre o Desempenho do Mercado Segurador Brasileiro

Carvalho

Bonetti

2023

Rev. adm. contemp.

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RESUMO Objetivo: avaliar a concentração em diferentes ramos do mercado segurador no Brasil e analisar seus efeitos sobre a arrecadação de prêmios e lucratividade. Há evidências de que o mercado segurador brasileiro apresenta as principais características de um oligopólio. Marco teórico: baseia-se na Organização Industrial, campo da Economia que se dedica a estudar a estrutura de mercado, importância e arranjo das firmas, além dos impactos derivados da concentração sobre a concorrência. Método: utilizam-se modelos de regressão para dados em painel. Os dados são oficiais do mercado segurador brasileiro, dispostos mensalmente entre fev./2003 e dez./2018, totalizando 82.443 observações de 135 seguradoras atuantes em 17 ramos. Para cada ramo, calcularam-se os principais índices de concentração da literatura e foram estimados seus efeitos sobre prêmios e lucros. Resultados: aumentos dos índices de concentração relacionam-se com redução da arrecadação das seguradoras, mas sem redução de lucro. No entanto, caso a seguradora esteja entre as maiores do mercado, e faça parte de algum grupo econômico, os efeitos são anulados e a concentração pode gerar aumentos de arrecadação de prêmios e lucros, sugerindo que ela exerce algum poder de mercado elevando os prêmios, reforçando a hipótese de estrutura-conduta-desempenho. Conclusões: a concentração setorial é maior nos segmentos de vida do que nos demais. As evidências apontam para as quatro maiores seguradoras do setor, com maiores arrecadações entre 2003 e 2018, detendo 90% do market share. Ademais, a arrecadação nos ramos vida, é superior a 80% da média total, concomitante a uma queda do total de players.

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Section: Introdução Introduçãounclassified

Efeitos Longitudinais da Concentração Setorial sobre o Desempenho do Mercado Segurador Brasileiro

Carvalho

Bonetti

2023

Rev. adm. contemp.

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“…Given the insurance market relevance, either by the significant growth or the importance promoted to both society and economy (Balcilar, Gupta, Lee, & Olasehinde-Williams, 2020;Flores, Carvalho, & Sampaio, 2021;Pradhan, Arvin, Norman, Nair, & Hall, 2016), it is important to understand the conditions under which the market is organized (Altuntas & Rauch, 2017;Chidambaran, Pugel, & Saunders, 1997) and their impact on premiums and profitability of different insurance market lines of business (LOB) in Brazil.…”

Section: Introduction Introductionmentioning

confidence: 99%

Longitudinal Effects of Sectoral Concentration on the Brazilian Insurance Market Performance

Carvalho

Bonetti

2023

Rev. adm. contemp.

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Objective: to evaluate the concentration in different Brazilian insurance lines of business (LOB) and analyze effects on premium revenues and profitability. There is evidence that the Brazilian insurance market holds the main characteristics of an oligopoly. Theoretical approach: it is based on Industrial Organization, a field of Economics that is dedicated to studying the market structure, importance, and arrangement of firms, in addition to impacts derived from concentration on competition. Method: regression models for panel data are used. The data are official from the Brazilian insurance market, arranged monthly between Feb./2003 and Dec./2018, totaling 82,443 observations from 135 insurers operating in 17 segments. For each segment, the main concentration indices in the literature were calculated and their effects on premiums and profits were estimated. Results: increases in concentration indices are related to reductions in insurance companies’ premiums revenues, but without a reduction in profits. However, if an insurer is among the market's largest, and is part of an economic group, the effects are nullified and the concentration can generate increases in premiums’ revenues and profits, suggesting that it exercises some market power by raising premiums, reinforcing the structure-conduct-performance hypothesis. Conclusions: the sectorial concentration is greater in life than in non-life LOB, with evidence pointing to the four largest insurance companies, with the highest collections between 2003 and 2018, holding 90% of the market share. In addition, the collection in the life LOB, is more than 80% of the average, concomitant with a drop in the total number of players.

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“…Insurance consists of two main subgroups: non-life insurance and life insurance. Non-life insurance commonly has short-term contracts while life insurance has long-term contracts [14][15][16]. Life insurance is a contract between a client and an insurer under which the insurer pays benefits to the clients after their death or extension of life in exchange for a premium.…”

Section: Introductionmentioning

confidence: 99%

The influence of climate change on the life insurance in the EU: A panel data approach

et al. 2021

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The financial sector, as one of the most sensitive economic sectors, is alert to all trends and changes in the environment. The aim of the article is to study the impact of climate change on the life insurance market using panel data from 28 countries of the European Union (EU) for the last 9 years. This study is based on a panel model, where the amount of premiums under life insurance contracts is defined as a function of the fundamental factor of climate change - greenhouse gas emissions. According to empirical findings, an increase in greenhouse gas emissions per thousand tons leads to an increase in the amount of life insurance premiums by 0.1786 million euros. It has also been found that an increase in greenhouse gas emissions per thousand tons leads to an increase in deaths in the European Union by 1.0442 people, and these consequences are statistically significant. In general, our results suggest that the life insurance market as well as the non-life insurance market is dependent on climate change. The empirical results of this study provide valuable insight into how greenhouse gas emissions affect mortality in the European Union.

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Impact of interest rates on the life insurance market development: Cross-country evidence

Cited by 7 publications

References 33 publications

Efeitos Longitudinais da Concentração Setorial sobre o Desempenho do Mercado Segurador Brasileiro

Efeitos Longitudinais da Concentração Setorial sobre o Desempenho do Mercado Segurador Brasileiro

Longitudinal Effects of Sectoral Concentration on the Brazilian Insurance Market Performance

The influence of climate change on the life insurance in the EU: A panel data approach

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