Centro de Documentacion de Fundación MAPFRE - An Investigation of market concentration and financial stability in property-liability insurance industry

MAP20170019534

An Investigation of market concentration and financial stability in property-liability insurance industry / Jeungbo Shim

Sumario: The article investigates whether the market concentration is associated with an insurer's financial stability in the U.S. property-liability insurance industry over the period 1992-2010. We employ two-stage least squares techniques with instrumental variables to address likely endogeneity problems. The results show that higher market concentration is associated with lower financial stability of insurance firms, consistent with the concentration-fragility view. Our results indicate that firm-specific characteristics including firm size, underwriting leverage, organizational form, product and geographical diversification, along with the exposure to natural catastrophes and macroeconomic conditions are important determinants in ensuring a safe and sound insurance system. Robustness tests using various estimation methods and alternative measures of financial stability present consistent results

En: The Journal of risk and insurance. - Nueva York : The American Risk and Insurance Association, 1964- = ISSN 0022-4367. - 05/06/2017 Volumen 84 Número 2 - junio 2017 , p. 567-597

1. Estabilidad financiera . 2. Concentración de mercados . 3. Mercado de seguros . I. Título.