Competition, efficiency and soundness in European life insurance markets
This paper provides cross-country evidence on the association between soundness and competition in the life insurance industry, where competition is measured by the Boone indicator. We analyze 10 European Union (EU) life insurance markets over the post-deregulation period 1999-2011. The results indi...
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| Format: | Article |
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Elsevier
2017
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| Online Access: | https://eprints.nottingham.ac.uk/41334/ |
| _version_ | 1848796251185741824 |
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| author | Cummins, J. David Rubio-Misas, María Vencappa, Dev |
| author_facet | Cummins, J. David Rubio-Misas, María Vencappa, Dev |
| author_sort | Cummins, J. David |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper provides cross-country evidence on the association between soundness and competition in the life insurance industry, where competition is measured by the Boone indicator. We analyze 10 European Union (EU) life insurance markets over the post-deregulation period 1999-2011. The results indicate that competition increases the soundness of the EU life insurance markets. Since the Boone indicator measures competition based on the reallocation of profits from inefficient insurers to efficient ones, our results suggest that efficiency is the mechanism through which competition contributes to insurer solvency. The soundness-enhancing effect of competition is greater for weak insurers than for healthy ones. |
| first_indexed | 2025-11-14T19:45:00Z |
| format | Article |
| id | nottingham-41334 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:45:00Z |
| publishDate | 2017 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-413342020-05-04T18:33:05Z https://eprints.nottingham.ac.uk/41334/ Competition, efficiency and soundness in European life insurance markets Cummins, J. David Rubio-Misas, María Vencappa, Dev This paper provides cross-country evidence on the association between soundness and competition in the life insurance industry, where competition is measured by the Boone indicator. We analyze 10 European Union (EU) life insurance markets over the post-deregulation period 1999-2011. The results indicate that competition increases the soundness of the EU life insurance markets. Since the Boone indicator measures competition based on the reallocation of profits from inefficient insurers to efficient ones, our results suggest that efficiency is the mechanism through which competition contributes to insurer solvency. The soundness-enhancing effect of competition is greater for weak insurers than for healthy ones. Elsevier 2017-02-28 Article PeerReviewed Cummins, J. David, Rubio-Misas, María and Vencappa, Dev (2017) Competition, efficiency and soundness in European life insurance markets. Journal of Financial Stability, 28 . pp. 66-78. ISSN 1572-3089 Competition Soundness Boone indicator European life insurers Financial crisis http://www.sciencedirect.com/science/article/pii/S1572308916301760 doi:10.1016/j.jfs.2016.11.007 doi:10.1016/j.jfs.2016.11.007 |
| spellingShingle | Competition Soundness Boone indicator European life insurers Financial crisis Cummins, J. David Rubio-Misas, María Vencappa, Dev Competition, efficiency and soundness in European life insurance markets |
| title | Competition, efficiency and soundness in European life insurance markets |
| title_full | Competition, efficiency and soundness in European life insurance markets |
| title_fullStr | Competition, efficiency and soundness in European life insurance markets |
| title_full_unstemmed | Competition, efficiency and soundness in European life insurance markets |
| title_short | Competition, efficiency and soundness in European life insurance markets |
| title_sort | competition, efficiency and soundness in european life insurance markets |
| topic | Competition Soundness Boone indicator European life insurers Financial crisis |
| url | https://eprints.nottingham.ac.uk/41334/ https://eprints.nottingham.ac.uk/41334/ https://eprints.nottingham.ac.uk/41334/ |