Is the Design of Bonus-Malus Systems Influenced by Insurance Maturity or National Culture? — Evidence from Asia

Park, Sojung C.; Lemaire, Jean; Chua, Choong Tze

doi:10.1057/gpp.2010.37

Cited by 12 publications

(7 citation statements)

References 14 publications

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“…This proves our hypothesis H2 true. Long term orientation positively impacts the insurance demand in our study which supports our Hypothesis 2 and also prior research done in the field by Park, Lemaire and Chua (2010). The finding can be explained by the fact that the greater a society is long term oriented higher will be the propensity of the society to invest in long term life insurance products.…”

Section: Cultural Variablessupporting

confidence: 90%

“…Inclusion of cultural factors increases the predictive ability of the regression model on life insurance consumption by 13%, highly significant Chui and Kwok (2008). Significant impact of cultural variables on non-life insurance consumption was found by Lemaire (2010). Blocking and bootstrapping statistical techniques Treerattanapun (2011) was used and significant impact of cultural factors was observed on non-life insurance consumption studying 82 countries across a 10-year period.…”

Section: Literature Reviewmentioning

confidence: 99%

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Influencers of Life Insurance Investments: Empirical Evidence from Europe

Mitra¹

2017

AABFJ

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This study analyzes the impact of economic, demographic and cultural factors on life insurance consumption in 28 European countries. The period of study is post financial crisis from [2009][2010][2011][2012][2013][2014], and the study considers many of the emerging Eastern European economies where there have been significant insurance sector reforms recently. Europe is the world's largest insurance market with 35% of the overall insurance premium contribution, but ranks third in insurance per capita, hence Europe is an interesting region in which to study insurance demand. The study observed four economic parameters: GDP per capita, gross savings, competitiveness of the nation, and inflation, as significant impacts on the insurance consumption in the region. Two demographic factors, population and education, and two cultural factors, individualism and long term orientation, appear to impact insurance consumption in the selected countries. KeywordsEuropean Union, Economic Growth, Investment Decisions, InsuranceThis article is available in Australasian Accounting, Business and Finance Journal: http://ro.uow.edu.au/aabfj/vol11/iss3/7 Influencers of Life Insurance InvestmentsEmpirical Evidence from Europe Aditi Mitra 1 AbstractThis study analyzes the impact of economic, demographic and cultural factors on life insurance consumption in 28 European countries. The period of study is post financial crisis from [2009][2010][2011][2012][2013][2014], and the study considers many of the emerging Eastern European economies where there have been significant insurance sector reforms recently. Europe is the world's largest insurance market with 35% of the overall insurance premium contribution, but ranks third in insurance per capita, hence Europe is an interesting region in which to study insurance demand. The study observed four economic parameters: GDP per capita, gross savings, competitiveness of the nation, and inflation, as significant impacts on the insurance consumption in the region. Two demographic factors, population and education, and two cultural factors, individualism and long term orientation, appear to impact insurance consumption in the selected countries. JEL Classification: G22, I13

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Section: Cultural Variablessupporting

confidence: 90%

Section: Literature Reviewmentioning

confidence: 99%

Influencers of Life Insurance Investments: Empirical Evidence from Europe

Mitra¹

2017

AABFJ

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“…Esho et al (2004) also investigate the impact of the legal system, but find it non-significant after controlling for income and property rights. Recently, Park et al (2010) showed that the use of a common law legal system is the most important determinant of the toughness of bonus-malus systems in automobile insurance. Therefore, a positive relationship is hypothesised with non-life insurance consumption.…”

Section: Institutional Factorsmentioning

confidence: 99%

The determinants of non-life insurance consumption: A VECM analysis in Central and South-Eastern Europe

Kjosevski¹,

Petkovski

2015

Acta Oeconomica

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J. KJOSEVSKI -M. PETKOVSKIThis study examines the determinant of non-life insurance consumption in 14 countries of Central and South-Eastern Europe between 1995 and 2010 within a vector error correction model (VECM). We use non-life insurance penetration as a measure for non-life insurance consumption. Empirical results provide evidence that the number of dwellings and number of passenger cars positively and signifi cantly infl uence non-life insurance consumption in the long run, while the existence of the rule of law and EU membership are signifi cant in the short run.

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“…Esho, Kirievsky, and Zurbruegg [2004] also investigate the impact of the legal system but find it insignificant after checking income and property rights. Recently Park, Lemaire, and Chua [2010] showed that the use of a Common Law legal system is the most important determinant of toughness of bonus-malus systems in automobile insurance. Therefore it is hypothesized that there is a positive relationship with nonlife insurance consumption.…”

Section: Institutional Factorsmentioning

confidence: 99%