Balancing growth, profitability and safety in the German insurance market

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Etat: Public
Version: Author's accepted manuscript
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ID Serval
serval:BIB_7D1C172C73F0
Type
Actes de conférence (partie): contribution originale à la littérature scientifique, publiée à l'occasion de conférences scientifiques, dans un ouvrage de compte-rendu (proceedings), ou dans l'édition spéciale d'un journal reconnu (conference proceedings).
Collection
Publications
Institution
Titre
Balancing growth, profitability and safety in the German insurance market
Titre de la conférence
Zeitschrift für die gesamte Versicherungswissenschaft, Sonderheft zur Jahrestagung 2019
Auteur⸱e⸱s
Maichel-Guggemoos L., Wagner J.
ISSN
0044-2585
Statut éditorial
Publié
Date de publication
2019
Peer-reviewed
Oui
Volume
108
Pages
421-442
Langue
anglais
Résumé
The contribution of this paper is to provide an improved understanding of the relationship between the three strategic objectives growth, profitability and safety of insurance companies in Germany. Extending on the work by Eling et al. (2017), we introduce measures and provide descriptive statistics for each objective. Our numerical analysis relies on panel data of German insurers for the years from 2001 to 2016 providing almost full market coverage. We apply different statistical tests and multilinear regression models to test how and to what extent the objectives are related. At the same time, we control for the legal status, the size of the insurance business and the calendar year. Regarding the total insurance market, our results suggest a positive and significant relationship between growth and profitability and a negative significant one between the safety level and profitability. Further, mutual and public insurers relate to lower growth and higher safety levels than listed companies. For the business volume, we find that larger companies tend to grow at a lower rate when compared to smaller companies while achieving higher profitability but lower safety levels. The results per business line show that life insurers yield significantly different results from non-life insurers. Thus, we separately analyze and discuss the results for the life and the non-life sectors.
Mots-clé
German insurance market, strategic objectives, growth – profitability – safety, empirical analysis
Création de la notice
14/06/2019 14:00
Dernière modification de la notice
21/11/2022 9:19
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