Abstract
This article investigates efficiency and competition in the Dutch life insurance market by estimating unused scale economies and measuring efficiency-market share dynamics during 1995-2010. Large unused scale economies exist for small- and medium-sized life insurers, indicating that further consolidation would reduce costs. Over time average scale economies decrease but substantial differences between small and large insurers remain. A direct measure of competition confirms that competitive pressure is lower than in other markets. We do not observe any impact of increased competition from banks, the so-called investment policy crisis or the credit crisis, apart from lower returns in 2008.
| Original language | English |
|---|---|
| Pages (from-to) | 73-104 |
| Number of pages | 32 |
| Journal | Risk Management and Insurance Review |
| Volume | 19 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 1 Mar 2016 |