Non-life insurance price dynamics: evidence from the Chinese insurance market
Journal Title: Economic Research-Ekonomska Istraživanja - Year 2018, Vol 31, Issue 1
Abstract
Non-life insurance prices may fluctuate due to economic and/or institutional factors; occasionally, the changes are cyclical. While the majority of previous studies relating to insurance price dynamics adopt data from developed economies, this paper uses data from China to provide new evidence. This study tests the long-term and short-term effects of real gross domestic product (GDP), interest rate and rate of stock market return on the prices of different lines of non-life insurance, i.e., property-liability insurance and personal accident insurance. The results indicate that the price dynamics of property-liability insurance are generally similar to those of developed countries, except for the effect of GDP, while price determination of personal accident insurance seems to be affected by a wider range of economic and institutional variables and has its own features. The price dynamics of non-life insurance in China have been identified as being connected to the country-specific economic and institutional environments.
Authors and Affiliations
Ling Tian, Shi-Jie Jiang, Guochen Pan, Ning Zhang
The links between firm-level productivity and modes of international expansion of firms from the Lodz Voivodeship
The paper investigates the link between firm-level productivity and internationalisation (through exports, imports and foreign direct investment (F.D.I.)) in the Lodz Voivodeship, Poland. The Olley–Pakes algorithm was us...
A nonparametric data mining approach for risk prediction in car insurance: a case study from the Montenegrin market
For prediction of risk in car insurance we used the nonparametric data mining techniques such as clustering, support vector regression (SVR) and kernel logistic regression (KLR). The goal of these techniques is to classi...
Corruption and shadow economy in transition economies of European Union countries: a panel cointegration and causality analysis
Corruption and shadow economy are two critical problems which feed each other and pose an obstacle against the economic development of countries, especially those with weak fundamentals. Central and Eastern European coun...
Estimation of market prices of risks in the G.A.R.C.H. diffusion model
In this paper we propose an estimation procedure which uses joint data on the underlying asset and option prices to extract market prices of return and volatility risks in the context of the G.A.R.C.H. diffusion model. T...
Financial leverage and stock returns: evidence from an emerging economy
The aim of this research was to examine the propositions of Campbell et al. and Mirza et al. on pricing of leverage in stock returns using a comprehensive set of firms listed on the Karachi Stock Exchange (KSE) over a pe...