Original scientific paper
https://doi.org/10.1080/1331677X.2018.1424557
Non-life insurance price dynamics: evidence from the Chinese insurance market
Ling Tian
; Department of Insurance and Actuarial Science, Wuhan University, Wuhan, PR China
Shi-Jie Jiang
; Department of Insurance and Actuarial Science, Wuhan University, Wuhan, PR China
Guochen Pan
; Department of Insurance and Actuarial Science, Wuhan University, Wuhan, PR China
Ning Zhang
; Department of Risk Management and Insurance, Hunan University, Changsha, PR China
Abstract
Non-life insurance prices may fluctuate due to economic and/or
institutional factors; occasionally, the changes are cyclical. While the
majority of previous studies relating to insurance price dynamics
adopt data from developed economies, this paper uses data from
China to provide new evidence. This study tests the long-term and
short-term effects of real gross domestic product (GDP), interest
rate and rate of stock market return on the prices of different lines
of non-life insurance, i.e., property-liability insurance and personal
accident insurance. The results indicate that the price dynamics of
property-liability insurance are generally similar to those of developed
countries, except for the effect of GDP, while price determination of
personal accident insurance seems to be affected by a wider range
of economic and institutional variables and has its own features. The
price dynamics of non-life insurance in China have been identified as
being connected to the country-specific economic and institutional
environments.
Keywords
Insurance price; price dynamics; external impacts; non-life insurance; China
Hrčak ID:
200661
URI
Publication date:
3.12.2018.
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