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The Austrian Insurance Industry: A Structure, Conduct and Performance Analysis

Author

Listed:
  • Jedlicka, Lorenz

    (Department of Economics, BWZ, University of Vienna)

  • Jumah, Adusei

    (Department of Economics, BWZ, University of Vienna and Department of Economics and Finance, Institute for Advanced Studies, Vienna, Austria)

Abstract
There exist a vast number of studies on the banking industry. However, the insurance industry remains relatively unexplored. Increasingly, Austrian insurance institutions are becoming important as financial intermediaries in the domestic market, and – based on proximity advantage – also in the Central and Eastern European markets. This paper applies the structure, conduct and performance (SCP) approach to a sample of 52 Austrian insurance firms. The main finding is that the standard SCP hypothesis of highly concentrated markets, which create incentives to engage in collusive behaviour and which in turn leads to higher industry profit rates, cannot be supported by the Austrian insurance industry leads to higher industry profit rates, cannot be supported by the Austrian insurance industry.

Suggested Citation

  • Jedlicka, Lorenz & Jumah, Adusei, 2006. "The Austrian Insurance Industry: A Structure, Conduct and Performance Analysis," Economics Series 189, Institute for Advanced Studies.
    • Handle: RePEc:ihs:ihsesp:189
    as

    Download full text from publisher

    File URL: https://irihs.ihs.ac.at/id/eprint/1707
    File Function: First version, 2006
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    References listed on IDEAS

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    Cited by:

    1. Gentiana Sharku & Sali Shehu, 2016. "Concentration of Albanian Insurance Market," Ekonomika a Management, Prague University of Economics and Business, vol. 2016(3).

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    More about this item

    Keywords

    Insurance industry; Market structure; Conduct and performance; Industrial organisation;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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