What Do We Know About Market Discipline in Insurance?

39 Pages Posted: 22 Sep 2012

See all articles by Martin Eling

Martin Eling

University of St. Gallen - Institute of Insurance Economics; University of Saint Gallen - School of Finance (SoF)

Date Written: Fall 2012

Abstract

The aim of this article is to summarize the knowledge on market discipline in insurance and other financial service sectors. Market discipline can be defined as the ability of customers, investors, intermediaries (agents, brokers), and evaluators (analysts, auditors, rating agencies) to monitor and influence a company's management. Looking at banking is especially interesting, since market discipline in this field has been studied extensively. Based on existing knowledge, we develop a framework for researching market discipline in insurance that includes its most important drivers and impediments. The results highlight a significant need for continuing research. The findings are of relevance not only for European insurers and regulators, but for institutions outside Europe.

Suggested Citation

Eling, Martin, What Do We Know About Market Discipline in Insurance? (Fall 2012). Risk Management and Insurance Review, Vol. 15, Issue 2, pp. 185-223, 2012. Available at SSRN: https://ssrn.com/abstract=2150500 or http://dx.doi.org/10.1111/j.1540-6296.2012.01217.x

Martin Eling (Contact Author)

University of St. Gallen - Institute of Insurance Economics ( email )

Kirchlistrasse 2
St. Gallen, 9010
Switzerland

University of Saint Gallen - School of Finance (SoF) ( email )

Unterer Graben 21
St.Gallen, CH-9000
Switzerland

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