The The Economic Impact of Ending a State Monopoly

Marcelo Ayub Monteiro, Felipe Garcia Ribeiro, Regis A. Ely and Guilherme Stein

Revista Brasileira de Economia - RBE, 2025, vol. 79, issue 1

Abstract: This study examines the impact of opening the Brazilian reinsurance market after the enactment of Complementary Law 126/2007 on insurance penetration. Economic theory suggests that breaking the IRB monopoly and the entry of new reinsurers would increase the supply of insurance. The research employs the synthetic control method and, as a robustness check, the factorial and difference-in-differences methods to assess this hypothesis. The results indicate a significant increase in insurance penetration in Brazil between 2008 and 2016, with estimated effects ranging from 42% to 52%, depending on the model used.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:fgv:epgrbe:v:79:y:2025:i:1:a:92676

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