This paper explores the relation between capital and risk in the life insurance industry in the period after the adoption of life risk-based capital (RBC) regulation. To examine this issue, we use a simultaneous-equation partial-adjustment model. Three equations express the interrelations among capital and two measures of risk: product risk and asset risk. The asset-risk measure used in this pa...

OBJECTIVES To contribute to current discussions about budget impact modeling, two different approaches for the impact of a new pharmaceutical product were analyzed: firstly considering the impact on annual healthcare expenditures only, and secondly additional inclusion of lost insurance premiums due to possible early retirement in patients with chronic diseases. METHODS The dynamic model calc...

The study at hand explores the influence of value-added services offered in addition to a motor insurance product on the customer's preference structure. It addresses the need of insurance companies to extend their core business with different types of supplementary services. A choice-based conjoint analysis is conducted which considers the price for the insurance product, the insurance franchi...

In the changing market scenario, insurance companies have realized the inherent value of brands and consider them ‘valuable assets’. Brand equity is the value buildup in a brand due to the positive perception of customers. The value of brand equity is the expected future revenue from the branded product as compare to unbranded product as there is proliferation of brands in the market place; ins...

The Product line approach promises productivity and flexibility gains through reuse. In order to achieve higher levels of productivity and flexibility, companies may need to adopt run-time variability realization techniques. However, such an approach can raise issues that companies need to face in order to fully implement run-time variability in their product lines. This is the case of I2S; a P...

This paper examines the impact of the concentration of the property insurance industry on economic growth in China. We first compute the Herfindahl-Hirschman Index (HHI) for the Chinese property insurance industry and establish a two-step system of generalized methods of moments (Two-Step SYS-GMM) estimation to compute the economic effect using a unique data set from the years 1980 to 2014. The...

This research investigates scale efficiency in the Canadian Insurance Industry using an intertemporal product differentiation oligopoly model estimated on a panel of federally chartered insurance companies for the period 1988 through 1991. Significant short-run scale economies are found with respect to both the output of new policies and the stock of policies issued in previous periods. An anal...

In 2013 health spending growth is expected to have remained slow, at 3.6 percent, as a result of the sluggish economic recovery, the effects of sequestration, and continued increases in private health insurance cost-sharing requirements. The combined effects of the Affordable Care Act's coverage expansions, faster economic growth, and population aging are expected to fuel health spending growth...

International Integration, Risk and the Welfare State How does international integration affect the welfare state? Does it call for a leaner or an expanded welfare state? International integration may affect the distortions caused by welfare state activities but also the risks motivating social insurance mechanisms. This paper addresses these potentially counteracting effects in a fully specifi...

In this paper we analyze the levels of technical efficiency and productivity growth attained by Spanish insurance companies during a period of deregulation. We compute Malmquist productivity indexes using the estimates of parametric distance function for several specialized insurance branches. In this way, we show that branch specialization matters a great deal and that firms combining two or t...