IDEAS home Printed from https://ideas.repec.org/a/eip/journl/y2013i3p134-144.html
   My bibliography  Save this article

Assessment of the openness level of the reinsurance market on the basis of gravity modeling

Author

Listed:
  • O. Kuzmenko

Abstract

One of the prerequisites for a successful development of the financial services market is the effective functioning of the reinsurance market, which acts as a complex dynamic system. On that ground, the article provides a review of the market as a network structure that allows to get rid of some shortcomings in the management decisions of the market subjects (especially on its segmentation and clustering). The necessity to improve the statistical methods of quantitative estimates of the reinsurance market and increase the range of its comprehensive analysis determines the relevance of the study of market as a social network model. The level of openness of the reinsurance market represents a characteristic of solvency, operation stability and rating of the market participants. As it is based on the formalization of relationships and interdependencies between the parties, the author provides a description and forecasting of the structural functioning of the domestic reinsurance market with the use of gravity modeling. Modeling the openness level of the reinsurance market with the use of gravity modeling provides an opportunity to obtain the following results: to quantify the strength of interaction between the considered and other contractor countries in the context of reinsurance activity; to cluster the directions and sources of reinsurance operations; to determine economically sound strategy and tactics of behavior of the reinsurance market subjects; and to identify priorities for the selection of countries for the reinsurance of own risks and those transmitting part of their insurance premiums to reinsurance based on the insurers' rating.

Suggested Citation

  • O. Kuzmenko, 2013. "Assessment of the openness level of the reinsurance market on the basis of gravity modeling," Economy and Forecasting, Valeriy Heyets, issue 3, pages 134-144.
  • Handle: RePEc:eip:journl:y:2013:i:3:p:134-144
    as

    Download full text from publisher

    File URL: http://eip.org.ua/docs/EP_13_3_134_uk.pdf
    Download Restriction: no

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eip:journl:y:2013:i:3:p:134-144. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Iryna Bazhal). General contact details of provider: http://eip.org.ua/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.