Foreign-Owned Insurer Performance in the US Property-Liability Markets

Posted: 18 Jun 2014

See all articles by Byeongyong Paul Choi

Byeongyong Paul Choi

Howard University - School of Business - Department of Finance, International Business, and Insurance

Elyas Elyasiani

Temple University - Department of Finance

Date Written: 2011

Abstract

Foreign-owned property-liability insurers have increased their market share in the US in the recent decades. They may have achieved this by being more efficient, by undercutting prices to attract away business from their domestic rivals, or both. We investigate return, risk, efficiency and determinants of efficiency performance of these insurers relative to their domestic competitors. We find that these firms are less profitable and less efficient in terms of cost scale and revenue X-efficiencies but more efficient in terms of cost X- and revenue scale efficiencies. Overall, the evidence shows that both of the aforementioned factors have contributed to their growth.

Suggested Citation

Choi, Byeongyong Paul and Elyasiani, Elyas, Foreign-Owned Insurer Performance in the US Property-Liability Markets (2011). Applied Economics, Vol. 43, 2011. Available at SSRN: https://ssrn.com/abstract=2451141

Byeongyong Paul Choi

Howard University - School of Business - Department of Finance, International Business, and Insurance ( email )

2600 Sixth St. NW
Washington, DC 20059
United States

Elyas Elyasiani (Contact Author)

Temple University - Department of Finance ( email )

Fox School of Business and Management
Philadelphia, PA 19122
United States
215-204-5881 (Phone)
215-204-5698 (Fax)

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