Rationale of underwriters’ pricing conduct on competitive insurance market

Vsevolod K. Malinovskii

Insurance: Mathematics and Economics, 2013, vol. 53, issue 2, 325-333

Abstract: Underwriters’ desire to show a good annual review is known to be a rationale of the aggressive pricing conduct. On the competitive insurance market, it impacts the global insurance processes and can lead to the competition-originated underwriting cycles. Applying Lundberg’s model of the annual probability mechanism of insurance, we model the influence of a price reduction on migration and consequently on the company’s annual expansion, revenue and solvency.

Keywords: Manager’s pricing conduct; Competition; Expansion; Revenue; Solvency (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:insuma:v:53:y:2013:i:2:p:325-333

DOI: 10.1016/j.insmatheco.2013.06.006

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