Performance of the Life Insurance Industry Under Pressure: Efficiency, Competition, and Consolidation

Jacob Bikker (jabikker@hotmail.com)

Risk Management and Insurance Review, 2016, vol. 19, issue 1, 73-104

Abstract: This article investigates efficiency and competition in the Dutch life insurance market by estimating unused scale economies and measuring efficiency‐market share dynamics during 1995–2010. Large unused scale economies exist for small‐ and medium‐sized life insurers, indicating that further consolidation would reduce costs. Over time average scale economies decrease but substantial differences between small and large insurers remain. A direct measure of competition confirms that competitive pressure is lower than in other markets. We do not observe any impact of increased competition from banks, the so‐called investment policy crisis or the credit crisis, apart from lower returns in 2008.

Date: 2016
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Citations: View citations in EconPapers (5)

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https://doi.org/10.1111/rmir.12059

Related works:
Chapter: Performance of the life insurance industry under pressure: efficiency, competition and consolidation (2017)
Working Paper: Performance of the life insurance industry under pressure: efficiency, competition and consolidation (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:rmgtin:v:19:y:2016:i:1:p:73-104

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