The Limits of Competition: Housing Insurance in Switzerland

Details

Serval ID
serval:BIB_2699DD1A611E
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
The Limits of Competition: Housing Insurance in Switzerland
Journal
European Economic Review
Author(s)
Von Ungern-Sternberg T.
ISSN
0014-2921
Publication state
Published
Issued date
1996
Peer-reviewed
Oui
Volume
40
Number
3-5
Pages
1111-1121
Language
english
Abstract
In Switzerland there are seven cantons where the housing insurance market is competitive, while in the 19 others there are local state monopolies. This paper compares the price/performance relationship of these different market forms. It is shown that for a very similar product the state monopolies charge 70% lower prices, that they spend substantially more on fire prevention, and that they have much lower damage rates. One of the main reasons for the higher prices of the private insurance companies is the fact that they spend considerably more on sales and administrative costs. The housing insurance market is thus a classic example of a situation where state monopoly outperforms private sector competition.
Keywords
Housing insurance, Competition, Public enterprise
Web of science
Create date
19/11/2007 9:53
Last modification date
20/08/2019 13:05
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