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

Vineet Upreti, Mike Adams

Research output: Contribution to journalArticle

8 Citations (Scopus)
160 Downloads (Pure)

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.
Original languageEnglish
Pages (from-to)206-219
Number of pages14
JournalJournal of Banking and Finance
Volume61
Early online date25 Sep 2015
DOIs
Publication statusPublished - 1 Dec 2015

Keywords

  • reinsurance
  • insurance
  • strategy
  • United Kingdom

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