The demand for reinsurance: Empirical test for the UK life insurance industry

This study is conducted aiming to test for the determinants of the demand for reinsurance. Three new variables, say new business, lines of business and group status are created in this study to test for their impact on life insurers demand for reinsurance. Apart from that, five control variables are...

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Main Author: fan, xue
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2008
Subjects:
Online Access:https://eprints.nottingham.ac.uk/21996/
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author fan, xue
author_facet fan, xue
author_sort fan, xue
building Nottingham Research Data Repository
collection Online Access
description This study is conducted aiming to test for the determinants of the demand for reinsurance. Three new variables, say new business, lines of business and group status are created in this study to test for their impact on life insurers demand for reinsurance. Apart from that, five control variables are also included in this study (firm size, financial strength, business concentration, profitability and organizational form). Tests are performed using data from all the 291 operating UK life insurers for the time period from 1995 to 2007. The data for 2005 to 2007 include information on intra-group reinsurance and external reinsurance. The results for this study indicate that new business has a significant effect on life insurers reinsurance demand, and for life insurers with a large proportion of with-profit insurance business and belonging to a group, their demand for reinsurance, especially intra-group reinsurance is stronger than others. This study also provides evidence on the impact of firm size, financial strength and organizational form, indicating that small proprietary life insurers with pool financial position would demand for reinsurance more than others. For business concentration and profitability, the result for this study is quite weak.
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spelling nottingham-219962018-01-18T08:35:02Z https://eprints.nottingham.ac.uk/21996/ The demand for reinsurance: Empirical test for the UK life insurance industry fan, xue This study is conducted aiming to test for the determinants of the demand for reinsurance. Three new variables, say new business, lines of business and group status are created in this study to test for their impact on life insurers demand for reinsurance. Apart from that, five control variables are also included in this study (firm size, financial strength, business concentration, profitability and organizational form). Tests are performed using data from all the 291 operating UK life insurers for the time period from 1995 to 2007. The data for 2005 to 2007 include information on intra-group reinsurance and external reinsurance. The results for this study indicate that new business has a significant effect on life insurers reinsurance demand, and for life insurers with a large proportion of with-profit insurance business and belonging to a group, their demand for reinsurance, especially intra-group reinsurance is stronger than others. This study also provides evidence on the impact of firm size, financial strength and organizational form, indicating that small proprietary life insurers with pool financial position would demand for reinsurance more than others. For business concentration and profitability, the result for this study is quite weak. 2008 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/21996/1/final.pdf fan, xue (2008) The demand for reinsurance: Empirical test for the UK life insurance industry. [Dissertation (University of Nottingham only)] (Unpublished) reinsurance life insurance risk management
spellingShingle reinsurance
life insurance
risk management
fan, xue
The demand for reinsurance: Empirical test for the UK life insurance industry
title The demand for reinsurance: Empirical test for the UK life insurance industry
title_full The demand for reinsurance: Empirical test for the UK life insurance industry
title_fullStr The demand for reinsurance: Empirical test for the UK life insurance industry
title_full_unstemmed The demand for reinsurance: Empirical test for the UK life insurance industry
title_short The demand for reinsurance: Empirical test for the UK life insurance industry
title_sort demand for reinsurance: empirical test for the uk life insurance industry
topic reinsurance
life insurance
risk management
url https://eprints.nottingham.ac.uk/21996/