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The Austrian Insurance Industry: A Structure, Conduct and Performance Analysis

Author

Listed:
  • Jedlicka, Lorenz

    (Department of Economics, BWZ, University of Vienna)

  • Jumah, Adusei

    (Department of Economics, BWZ, University of Vienna and Department of Economics and Finance, Institute for Advanced Studies, Vienna, Austria)

Abstract

There exist a vast number of studies on the banking industry. However, the insurance industry remains relatively unexplored. Increasingly, Austrian insurance institutions are becoming important as financial intermediaries in the domestic market, and – based on proximity advantage – also in the Central and Eastern European markets. This paper applies the structure, conduct and performance (SCP) approach to a sample of 52 Austrian insurance firms. The main finding is that the standard SCP hypothesis of highly concentrated markets, which create incentives to engage in collusive behaviour and which in turn leads to higher industry profit rates, cannot be supported by the Austrian insurance industry leads to higher industry profit rates, cannot be supported by the Austrian insurance industry.

Suggested Citation

  • Jedlicka, Lorenz & Jumah, Adusei, 2006. "The Austrian Insurance Industry: A Structure, Conduct and Performance Analysis," Economics Series 189, Institute for Advanced Studies.
  • Handle: RePEc:ihs:ihsesp:189
    as

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    File URL: http://www.ihs.ac.at/publications/eco/es-189.pdf
    File Function: First version, 2006
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    References listed on IDEAS

    as
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    5. Fama, Eugene F., 1980. "Banking in the theory of finance," Journal of Monetary Economics, Elsevier, vol. 6(1), pages 39-57, January.
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    7. Lloyd-Williams, D. M. & Molyneux, Phil & Thornton, John, 1994. "Market structure and performance in Spanish banking," Journal of Banking & Finance, Elsevier, vol. 18(3), pages 433-443, May.
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    Cited by:

    1. Gentiana Sharku & Sali Shehu, 2016. "Concentration of Albanian Insurance Market," Ekonomika a Management, University of Economics, Prague, vol. 2016(3).

    More about this item

    Keywords

    Insurance industry; Market structure; Conduct and performance; Industrial organisation;

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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