Assessing the Efficiency of an Insurance Provider. A Measurement Error Approach

Détails

ID Serval
serval:BIB_BFBD069484A9
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Titre
Assessing the Efficiency of an Insurance Provider. A Measurement Error Approach
Périodique
The Geneva Risk and Insurance Review
Auteur(s)
Jametti M., Von Ungern-Sternberg T.
ISSN
1554-964X
Statut éditorial
Publié
Date de publication
2005
Peer-reviewed
Oui
Volume
30
Numéro
1
Pages
15-34
Langue
anglais
Résumé
The purpose of this paper is to compare the cost efficiency of private and public property insurance providers in Switzerland. The most commonly used measure for this kind of exercise is the claims-premium ratio. We argue that this measure may give strongly biased results. We develop a simple model to test whether the elasticity of premiums with respect to claims is less than unity. We address the fact that premium income is relatively stable across time, while claims are not, using estimation techniques that correct for measurement error. We develop tools to cope with heteroskedasticity in such measurement errors and apply the model to a data set on 19 firms in housing insurance markets in Switzerland. We show that the public insurance providers are about 20% more cost efficient than their private counterparts.
Mots-clé
Insurance, Public and private, Cost efficiency, C/P ratio, Measurement error, CALS
Web of science
Open Access
Oui
Création de la notice
19/11/2007 11:46
Dernière modification de la notice
09/05/2019 0:40
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