Future developments in financial services: insurance
Article Abstract:
Article discusses considerations the insurance industry will need to address in order to capitalize on advancements in communications and technology. Those considerations include solutions to problems of inflation, adverse selection, moral hazard and catastrophic losses that threaten market viability. Other challenges facing the industry include globalization and consolidation, competition from intermediaries and financial risk management. Additionally, research is need to monitor and understand market structure, profitability and economies of scale and scope.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1993
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Consolidation and efficiency in the US life insurance industry
Article Abstract:
Empirical evidence shows that consolidation improves the efficiency and scale economies of life insurance companies. This observation is supported by a data envelopment analysis of cost and revenue efficiency in the life insurance industry during the period 1988-1995. In particular, acquired companies tend to benefit more in terms of efficiency than their counterparts that have not been involved in acquisitions or mergers. Life insurers with non-decreasing returns to scale and weak financial standing are more prone to acquisitions.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1999
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Measuring cost efficiency in the property-liability insurance industry
Article Abstract:
Article investigates escalating prices and periodic availablity problems in property-liability insurance markets due to insurance company inefficiency and lax claims settlement practices. The study uses stochastic cost frontiers of three size-stratified samples of multiple line insurers to measure efficiency. Results show that efficiency levels for larger insurers are about 90% relative to their cost frontiers. Efficiency levels for small and medium insurers are about 80% and 88%.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1993
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