Claims' estimation in multiproduct life insurance firms: preliminary United Kingdom results

Philip Hardwick and Michael Adams

Applied Economics Letters, 1996, vol. 3, issue 11, 715-718

Abstract: In the insurance industry, claims tend to constitute the major proportion of the total annual outgoings across almost all product lines. This preliminary study develops a cost function of insurance claims and applies the model to 1988-93 data from the UK life insurance industry. In general, the results support the hypothesis that larger life insurance firms on average face bigger claims-to-premium ratios than smaller firms. There is also evidence of a positive relationship between claims and the degree of specialization in the provision of life insurance products. Finally, there is clear support for the view that stock firms have a less severe claims experience than mutuals. We conclude that the model provides intuitive insights into the determinants of insurance claims which could help to stimulate and direct further research.

Date: 1996
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:3:y:1996:i:11:p:715-718

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/135048596355727

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().