The Boone Indicator as Determinant of Croatian Insurance Market Soundness

Kramarić, Tomislava Pavić; Miletić, Marko

doi:10.2478/jeb-2019-0009

Cited by 1 publication

(2 citation statements)

References 40 publications

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“…Overall, the range of the Boone indicator for the study was 0.232 to 0.4005 with average cost and 0.096 to 0.344 with marginal cost which compares favourably with the results obtained in a Croatian study. Kramarić and Miletić (2019) evaluated the effect of competition on soundness of Croatian insurers and established that the Boones indicator for the sector ranged from 0.2536 to 0.4142 between 2006 and 2010. The results also compare favourably well with those obtained by Abel, Khobai and Le Roux (2017) for the Zimbabwean banking sector where they obtained the average Boone indicators of 0.4950 and 0.2781 for the loan and deposit markets, respectively, for the period 2009-2016.…”

Section: Results Presentation and Analysismentioning

confidence: 99%

“…The impulse response function revealed that the impact of one standard deviation shock in the rise of Boone indicator as a proxy for competition on stability was zero for the first year and dropped to negative through to the tenth year. Kramarić and Miletić (2019) evaluated the effect of competition on soundness of Croatian insurers. They also adopted the Boone indicator method for measuring competition.…”

Section: Literature Reviewmentioning

confidence: 99%

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Competition in the insurance sector – An application of Boone indicator

Abel

Marire

2021

Cogent Economics & Finance

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Competition in the insurance sector is an important element since it leads to the reduction in risk and uncertainty, enables efficient resources allocation, enhances product innovation, enhances economic growth and improves efficient production of financial services. The study evaluates competition in the insurance sector in Zimbabwe during the period 2010-2017. Of interest is the evolution of competition during the period when the economy had transitioned from hyperinflation. How competition evolved during this period is of interest due to the changes in macroeconomic management styles that were experienced after the hyperinflation period. Of novelty to this study is the use of the Boone Indicator, one of the new empirical industrial organisation methods. The method is premised on the idea that efficient firms achieve higher market shares or profits. The study established that competition was moderate in the insurance industry during the study period. The results further revealed that there was no significant difference in competition in the periods 2013-2017 and 2010-2012. The study recommends that the government should ensure that the macroeconomic environment is conducive for businesses to compete. The economy should be prevented from sliding into hyperinflationary environment, which negatively impacts policy holders as well as insurance companies. The government should put in place pro-growth policies to ABOUT THE AUTHOR

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Section: Results Presentation and Analysismentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%