The Demand for Reinsurance in U.K. Non-Life Insurance Industry: Theory and Empirical Tests

This study is aimed to investigate the determinants of reinsurance purchasing in the U.K. non-life insurance industry. By using the data on 276 U.K. non-life insurers during the period of 1989-2010, it empirically tests the 11 theoretical potential firm-special factors that affecting the demand for...

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Main Author: ZHANG, YU
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2013
Online Access:https://eprints.nottingham.ac.uk/26686/
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author ZHANG, YU
author_facet ZHANG, YU
author_sort ZHANG, YU
building Nottingham Research Data Repository
collection Online Access
description This study is aimed to investigate the determinants of reinsurance purchasing in the U.K. non-life insurance industry. By using the data on 276 U.K. non-life insurers during the period of 1989-2010, it empirically tests the 11 theoretical potential firm-special factors that affecting the demand for reinsurance. Based on fixed effect model and binary regression model, it indicates underwriting risk, profitability, size, earning volatility, and product concentration have a strong impact on reinsurance purchasing for the U.K. non-life insurance firms, which suggest reinsurance enable insurers to mitigate underwriting risk, bankruptcy risk and probability in raising new external funds, to increase the underwriting capability and flexibility, and to access professional and relatively cheap services. In contact, tax related factors and organization form are found to have no significant impact on the reinsurance purchasing, and there also no support is found for the theoretically expected effect of leverage, growth opportunity, and liquidity on reinsurance demand.
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spelling nottingham-266862017-10-19T13:34:35Z https://eprints.nottingham.ac.uk/26686/ The Demand for Reinsurance in U.K. Non-Life Insurance Industry: Theory and Empirical Tests ZHANG, YU This study is aimed to investigate the determinants of reinsurance purchasing in the U.K. non-life insurance industry. By using the data on 276 U.K. non-life insurers during the period of 1989-2010, it empirically tests the 11 theoretical potential firm-special factors that affecting the demand for reinsurance. Based on fixed effect model and binary regression model, it indicates underwriting risk, profitability, size, earning volatility, and product concentration have a strong impact on reinsurance purchasing for the U.K. non-life insurance firms, which suggest reinsurance enable insurers to mitigate underwriting risk, bankruptcy risk and probability in raising new external funds, to increase the underwriting capability and flexibility, and to access professional and relatively cheap services. In contact, tax related factors and organization form are found to have no significant impact on the reinsurance purchasing, and there also no support is found for the theoretically expected effect of leverage, growth opportunity, and liquidity on reinsurance demand. 2013-09-21 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26686/1/DISSERTATION_YUZHANG.pdf ZHANG, YU (2013) The Demand for Reinsurance in U.K. Non-Life Insurance Industry: Theory and Empirical Tests. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle ZHANG, YU
The Demand for Reinsurance in U.K. Non-Life Insurance Industry: Theory and Empirical Tests
title The Demand for Reinsurance in U.K. Non-Life Insurance Industry: Theory and Empirical Tests
title_full The Demand for Reinsurance in U.K. Non-Life Insurance Industry: Theory and Empirical Tests
title_fullStr The Demand for Reinsurance in U.K. Non-Life Insurance Industry: Theory and Empirical Tests
title_full_unstemmed The Demand for Reinsurance in U.K. Non-Life Insurance Industry: Theory and Empirical Tests
title_short The Demand for Reinsurance in U.K. Non-Life Insurance Industry: Theory and Empirical Tests
title_sort demand for reinsurance in u.k. non-life insurance industry: theory and empirical tests
url https://eprints.nottingham.ac.uk/26686/