The strategic role of reinsurance in the United Kingdom’s (UK) non-life insurance market

Vineet Upreti and Mike Adams

Journal of Banking & Finance, 2015, vol. 61, issue C, 206-219

Abstract: Using panel data for five main lines of insurance in the United Kingdom’s (UK) non-life insurance market we demonstrate that by increasing the level of reinsurance, primary insurers increase their product-market share at the expense of less reinsured rivals. We also observe that the influence of reinsurance and other financial variables on insurers’ growth in product-market share differs across lines of insurance business. We conclude that reinsurance performs an important strategic function in insurance markets through its impact on product-market outcomes in competitive insurance markets. Additionally, we find that leverage is the most important factor affecting product-market share at the aggregate business level of the insurance firm.

Keywords: Reinsurance; Insurance; Strategy; United Kingdom (search for similar items in EconPapers)
JEL-codes: G22 G32 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:61:y:2015:i:c:p:206-219

DOI: 10.1016/j.jbankfin.2015.09.010

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