Profit and Concentration in Commercial Automobile Insurance Losses

Vickie L. Bajtelsmit and Raja Bouzouita

Journal of Insurance Issues, 1998, vol. 21, issue 2, 172-182

Abstract: Pricing of commercial insurance has generally been thought to be more competitive than that of personal insurance. For this reason, there has been little academic interest in the impact of market structure on insurer profitability for these lines, despite findings of such a relationship in other lines. This study examines whether such a relationship exists for commercial automobile insurance and finds that states with higher levels of concentration have higher average profit margins. This is consistent with the results of Bajtelsmit and Bouzouita (1998) on market structure and performance in personal auto lines. Other variables that are important determinants of profitability include the direct writers’ share of the market, state-wide productivity growth, and lagged interest.

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.insuranceissues.org/PDFs/212BB.pdf (application/pdf)

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:wri:journl:v:21:y:1998:i:2:p:172-182

Access Statistics for this article

Journal of Insurance Issues is currently edited by James Barrese

More articles in Journal of Insurance Issues from Western Risk and Insurance Association
Bibliographic data for series maintained by James Barrese ().