Summary
The present study examines the relationship between insurer characteristics and economies of scale, using data from Taiwan. This study explores the average cost relationship between life insurers and each of ten insurer characteristics. The data used are drawn from 25 insurers. Evidence shows that the following independent variables are associated with economies of scale; premium income, new business ratio, proportion of whole life business, and size of insurer. Finally, economies of scale prevail in this study.
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Extract
The Relationship Between Insurer Characteristics and Economies of Scale
Introduction
This study seeks evidence of economies of scale for a sample of 25 Taiwan insurers. Data are obtained from the 2004 Life Insurance Report for the Taiwan Insurance Department. The plan of this paper is to present a brief survey of the existing research and literature on this subject, to discuss the implications of estimating cost ...See the full content of this document
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