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Competition and optimal structure in the insurance branch

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Abstract

In this article the author analyses insurance markets. Insurance business is in many countries a very regulated branch. The reason for a strict regulation of the insurance market is the risk of bankruptcy. The risk of bancruptcy increases as a result of harsh competition. In the article the problems of imperfect information and adverse selection on insurance markets is also dealt with. Moreover, the author outlines some specific problems concerning the Finnish insurance markets. Insurance is typically a ''local business''. In Finland the geographical structure, i.e. large distances and a small population, causes problems on the insurance market

Topics: HC
Publisher: EKON SAMFUNDETS TIDSKRIFT
OAI identifier: oai:wrap.warwick.ac.uk:18805
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