Insurers : Too Many, Too Few, or "Just Right"? Initial Observations on a Cross-Country Dataset of Concentration and Competition Measures
In many markets, industry and policymakers agree that there may be too many insurers. In others, the consensus is that there could be benefit from more competition. But this broad consensus is often supported by evidence that is more qualitative, a...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/03/9251341/insurers-too-many-too-few-or-just-right-initial-observations-cross-country-dataset-concentration-competition-measures http://hdl.handle.net/10986/6510 |
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okr-10986-65102021-04-23T14:02:31Z Insurers : Too Many, Too Few, or "Just Right"? Initial Observations on a Cross-Country Dataset of Concentration and Competition Measures Thorburn, Craig APPLICATIONS COMPANY COMPETITIVE MARKET COMPETITORS COUNTRY TO COUNTRY DIVERSIFICATION ECONOMIC DEVELOPMENT EXCHANGE RATES FINANCIAL SECTOR FINANCIAL SECURITY FINANCIAL SYSTEMS FIRMS GROSS DOMESTIC PRODUCT INDIVIDUAL FIRM INDIVIDUAL MARKET INSURANCE INSURANCE MARKET INSURANCE MARKETS INSURANCE PENETRATION INSURANCE POLICIES INSURANCE PREMIUM INSURANCE PRODUCTS INSURER INSURERS INTERNATIONAL BANK JURISDICTIONS LESS DEVELOPED MARKETS LIABILITY LIBERALIZATION LICENSING LIFE INSURANCE LIFE INSURERS MARKET COMPETITION MARKET CONDITIONS MARKET DEVELOPMENT MARKET ENTRY MARKET INTEGRATION MARKET PARTICIPANT MARKET PARTICIPANTS MARKET RISK MARKET RISK ASSESSMENTS MARKET SHARE MARKET SHARES MARKET SIZE MATURE MARKETS MERGER MINIMUM CAPITAL REQUIREMENTS MONOPOLIES MONOPOLY NEW MARKET NON LIFE INSURANCE POLICYHOLDERS PRICE WARS PRIVATE SECTOR DEVELOPMENT REGULATORS REGULATORY REFORM REINSURANCE RETURNS RETURNS ON EQUITY RISK ANALYSIS RISK ASSESSMENTS RISK MANAGEMENT RISK PROFILE SEES SHAREHOLDER SHAREHOLDERS SOCIAL SECURITY STARTUPS UNDERWRITERS UNDERWRITING In many markets, industry and policymakers agree that there may be too many insurers. In others, the consensus is that there could be benefit from more competition. But this broad consensus is often supported by evidence that is more qualitative, anecdotal, or judgmental despite being unanimous. What is less clear, however, is how far consolidation or liberalization will go, how fast, and when it will end. This paper presents some initial observations from a cross-country data set and proposes that individual country results can be interpreted against this data set to inform expectations regarding trends in competition, concentration and consolidation, to inform analysis of the sector, for individual firm strategic planning and wider market risk assessments. A "natural level" for measures is suggested as a starting hypothesis. Further consideration is then made of the role of absolute market size, stage of market development, and differentials between life and non life segments. Analysis of the natural level, adjusted for market conditions, can then be used to develop preliminary views on current and expected market dynamics, strategic planning, and to inform policy, regulatory and supervisory priorities. 2012-05-29T13:50:36Z 2012-05-29T13:50:36Z 2008-03 http://documents.worldbank.org/curated/en/2008/03/9251341/insurers-too-many-too-few-or-just-right-initial-observations-cross-country-dataset-concentration-competition-measures http://hdl.handle.net/10986/6510 English Policy Research Working Paper; No. 4578 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
APPLICATIONS COMPANY COMPETITIVE MARKET COMPETITORS COUNTRY TO COUNTRY DIVERSIFICATION ECONOMIC DEVELOPMENT EXCHANGE RATES FINANCIAL SECTOR FINANCIAL SECURITY FINANCIAL SYSTEMS FIRMS GROSS DOMESTIC PRODUCT INDIVIDUAL FIRM INDIVIDUAL MARKET INSURANCE INSURANCE MARKET INSURANCE MARKETS INSURANCE PENETRATION INSURANCE POLICIES INSURANCE PREMIUM INSURANCE PRODUCTS INSURER INSURERS INTERNATIONAL BANK JURISDICTIONS LESS DEVELOPED MARKETS LIABILITY LIBERALIZATION LICENSING LIFE INSURANCE LIFE INSURERS MARKET COMPETITION MARKET CONDITIONS MARKET DEVELOPMENT MARKET ENTRY MARKET INTEGRATION MARKET PARTICIPANT MARKET PARTICIPANTS MARKET RISK MARKET RISK ASSESSMENTS MARKET SHARE MARKET SHARES MARKET SIZE MATURE MARKETS MERGER MINIMUM CAPITAL REQUIREMENTS MONOPOLIES MONOPOLY NEW MARKET NON LIFE INSURANCE POLICYHOLDERS PRICE WARS PRIVATE SECTOR DEVELOPMENT REGULATORS REGULATORY REFORM REINSURANCE RETURNS RETURNS ON EQUITY RISK ANALYSIS RISK ASSESSMENTS RISK MANAGEMENT RISK PROFILE SEES SHAREHOLDER SHAREHOLDERS SOCIAL SECURITY STARTUPS UNDERWRITERS UNDERWRITING |
| spellingShingle |
APPLICATIONS COMPANY COMPETITIVE MARKET COMPETITORS COUNTRY TO COUNTRY DIVERSIFICATION ECONOMIC DEVELOPMENT EXCHANGE RATES FINANCIAL SECTOR FINANCIAL SECURITY FINANCIAL SYSTEMS FIRMS GROSS DOMESTIC PRODUCT INDIVIDUAL FIRM INDIVIDUAL MARKET INSURANCE INSURANCE MARKET INSURANCE MARKETS INSURANCE PENETRATION INSURANCE POLICIES INSURANCE PREMIUM INSURANCE PRODUCTS INSURER INSURERS INTERNATIONAL BANK JURISDICTIONS LESS DEVELOPED MARKETS LIABILITY LIBERALIZATION LICENSING LIFE INSURANCE LIFE INSURERS MARKET COMPETITION MARKET CONDITIONS MARKET DEVELOPMENT MARKET ENTRY MARKET INTEGRATION MARKET PARTICIPANT MARKET PARTICIPANTS MARKET RISK MARKET RISK ASSESSMENTS MARKET SHARE MARKET SHARES MARKET SIZE MATURE MARKETS MERGER MINIMUM CAPITAL REQUIREMENTS MONOPOLIES MONOPOLY NEW MARKET NON LIFE INSURANCE POLICYHOLDERS PRICE WARS PRIVATE SECTOR DEVELOPMENT REGULATORS REGULATORY REFORM REINSURANCE RETURNS RETURNS ON EQUITY RISK ANALYSIS RISK ASSESSMENTS RISK MANAGEMENT RISK PROFILE SEES SHAREHOLDER SHAREHOLDERS SOCIAL SECURITY STARTUPS UNDERWRITERS UNDERWRITING Thorburn, Craig Insurers : Too Many, Too Few, or "Just Right"? Initial Observations on a Cross-Country Dataset of Concentration and Competition Measures |
| relation |
Policy Research Working Paper; No. 4578 |
| description |
In many markets, industry and
policymakers agree that there may be too many insurers. In
others, the consensus is that there could be benefit from
more competition. But this broad consensus is often
supported by evidence that is more qualitative, anecdotal,
or judgmental despite being unanimous. What is less clear,
however, is how far consolidation or liberalization will go,
how fast, and when it will end. This paper presents some
initial observations from a cross-country data set and
proposes that individual country results can be interpreted
against this data set to inform expectations regarding
trends in competition, concentration and consolidation, to
inform analysis of the sector, for individual firm strategic
planning and wider market risk assessments. A "natural
level" for measures is suggested as a starting
hypothesis. Further consideration is then made of the role
of absolute market size, stage of market development, and
differentials between life and non life segments. Analysis
of the natural level, adjusted for market conditions, can
then be used to develop preliminary views on current and
expected market dynamics, strategic planning, and to inform
policy, regulatory and supervisory priorities. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Thorburn, Craig |
| author_facet |
Thorburn, Craig |
| author_sort |
Thorburn, Craig |
| title |
Insurers : Too Many, Too Few, or "Just Right"? Initial Observations on a Cross-Country Dataset of Concentration and Competition Measures |
| title_short |
Insurers : Too Many, Too Few, or "Just Right"? Initial Observations on a Cross-Country Dataset of Concentration and Competition Measures |
| title_full |
Insurers : Too Many, Too Few, or "Just Right"? Initial Observations on a Cross-Country Dataset of Concentration and Competition Measures |
| title_fullStr |
Insurers : Too Many, Too Few, or "Just Right"? Initial Observations on a Cross-Country Dataset of Concentration and Competition Measures |
| title_full_unstemmed |
Insurers : Too Many, Too Few, or "Just Right"? Initial Observations on a Cross-Country Dataset of Concentration and Competition Measures |
| title_sort |
insurers : too many, too few, or "just right"? initial observations on a cross-country dataset of concentration and competition measures |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/03/9251341/insurers-too-many-too-few-or-just-right-initial-observations-cross-country-dataset-concentration-competition-measures http://hdl.handle.net/10986/6510 |
| _version_ |
1764400432051912704 |