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The strategic role of reinsurance in the United Kingdom’s (UK) non-life insurance market
Vineet Upreti 
,
Mike Adams
,
Mike Adams
Journal of Banking & Finance, Volume: 61, Pages: 206 - 219
Swansea University Author:
Vineet Upreti
-
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DOI (Published version): 10.1016/j.jbankfin.2015.09.010
Abstract
We demonstrate that by increasing the level of reinsurance, primary insurers increase their product-market share at the expense of rivals with lower reinsurance coverage in five main lines of insurance in the United Kingdom’s (UK) non-life insurance market. We use panel data drawn from statutory fil...
| Published in: | Journal of Banking & Finance |
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| Published: |
2015
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| URI: | https://cronfa.swan.ac.uk/Record/cronfa23363 |
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| Abstract: |
We demonstrate that by increasing the level of reinsurance, primary insurers increase their product-market share at the expense of rivals with lower reinsurance coverage in five main lines of insurance in the United Kingdom’s (UK) non-life insurance market. We use panel data drawn from statutory filings made by non-life insurers to the then UK regulator (FSA) over 1985 to 2010 period. We find that the influence of reinsurance and other financial variables on insurers’ growth in product-market share varies across lines of insurance business. Since reinsurance impacts on product-market outcomes in competitive non-life insurance industry, we conclude that reinsurance performs an important strategic function in insurance markets. |
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| Keywords: |
Reinsurance; Insurance; Strategy; United Kingdom |
| College: |
Faculty of Humanities and Social Sciences |
| Start Page: |
206 |
| End Page: |
219 |