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http://dx.doi.org/10.15207/JKCS.2016.7.5.201

Competition in the Life Insurance Market: Evidence from Korea using the Panzar - Rosse Model  

Choi, Sungho (College of Business Administration, Chonnam National University)
Publication Information
Journal of the Korea Convergence Society / v.7, no.5, 2016 , pp. 201-211 More about this Journal
Abstract
This paper uses the Panzar Rosse model to investigate the competitive conditions in the Korean life insurance companies over the period of 1999 2012. We break down the entire sample period into four distinctive groups and analyze the competitiveness of each period. The results indicate that for the pre-introduction of Bancassurance period, the H-statistic is -1.3984 and the life insurance market is found to be in monopoly or cartel. However, for the post-introduction of Bancassurance period, the H-statistic is 0.9107 and the life insurance market appears to be in monopolistic competition. The results from the introduction of retirement pension system are very similar to those of the introduction of Bancassurance. Overall, the findings indicate that the Korean life insurance market is in long-run equilibrium before the new system introduction, but make adjustments to the new equilibrium.
Keywords
Life Insurance; Competition; Panzar-Rosse; H-statistic; Bancassurance; Retirement;
Citations & Related Records
Times Cited By KSCI : 8  (Citation Analysis)
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