Abstract
Drawing on a framework from the organizational economics literature, we utilize a panel data design to examine empirically the effect of motor insurance and liability insurance business on the overall underwriting performance of insurers operating in the United Kingdom’s (UK) property–casualty insurance market. We find that participation in liability insurance contributes positively to underwriting performance, whereas motor insurance is associated with inferior underwriting performance. Additionally, we find that higher reinsurance ratio is associated with better underwriting performance, but reduced profit margins. Our results show that higher leverage too is associated with better underwriting performance. We conclude that our results could have potentially important commercial and/or policy implications.
| Original language | English |
|---|---|
| Pages (from-to) | 1012-1031 |
| Number of pages | 20 |
| Journal | The European Journal of Finance |
| Volume | 25 |
| Issue number | 11 |
| DOIs | |
| Publication status | Published - 24 Jul 2019 |
Keywords
- Underwriting performance
- United Kingdom
- insurance
ASJC Scopus subject areas
- Economics, Econometrics and Finance (miscellaneous)
Cite this
Product-market strategy and underwriting performance in the United Kingdom’s property–casualty insurance market. / Adams, Michael; Upreti, Vineet; Chen, Jing.
In: The European Journal of Finance, Vol. 25, No. 11, 24.07.2019, p. 1012-1031.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Product-market strategy and underwriting performance in the United Kingdom’s property–casualty insurance market
AU - Adams, Michael
AU - Upreti, Vineet
AU - Chen, Jing
PY - 2019/7/24
Y1 - 2019/7/24
N2 - Drawing on a framework from the organizational economics literature, we utilize a panel data design to examine empirically the effect of motor insurance and liability insurance business on the overall underwriting performance of insurers operating in the United Kingdom’s (UK) property–casualty insurance market. We find that participation in liability insurance contributes positively to underwriting performance, whereas motor insurance is associated with inferior underwriting performance. Additionally, we find that higher reinsurance ratio is associated with better underwriting performance, but reduced profit margins. Our results show that higher leverage too is associated with better underwriting performance. We conclude that our results could have potentially important commercial and/or policy implications.
AB - Drawing on a framework from the organizational economics literature, we utilize a panel data design to examine empirically the effect of motor insurance and liability insurance business on the overall underwriting performance of insurers operating in the United Kingdom’s (UK) property–casualty insurance market. We find that participation in liability insurance contributes positively to underwriting performance, whereas motor insurance is associated with inferior underwriting performance. Additionally, we find that higher reinsurance ratio is associated with better underwriting performance, but reduced profit margins. Our results show that higher leverage too is associated with better underwriting performance. We conclude that our results could have potentially important commercial and/or policy implications.
KW - Underwriting performance
KW - United Kingdom
KW - insurance
UR - http://www.scopus.com/inward/record.url?scp=85064896586&partnerID=8YFLogxK
U2 - 10.1080/1351847X.2019.1578676
DO - 10.1080/1351847X.2019.1578676
M3 - Article
VL - 25
SP - 1012
EP - 1031
JO - The European Journal of Finance
JF - The European Journal of Finance
SN - 1351-847X
IS - 11
ER -