Journal of Commerce and Accounting Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

De-Tariffication and Market Concentration in Non Life Insurance in India


Affiliations
1 Assistant Professor, Shaheed Bhagat Singh College, University of Delhi, Delhi, India
2 Professor, Department of Commerce, Maharishi Dayanand University, Rohtak, Haryana, India
     

   Subscribe/Renew Journal


The historical step of de-tariffication has brought in various significant changes in Indian general insurance sector and change in concentration in the market is among one of them. Market concentration is used to study the dominance of major players in the market and about the level and nature of competition in the market. Present study measures the concentration in general insurance sector in India over the period 2002-2003 to 2012-2013 with an aim to examine the change in the market concentration level during the pre and post full de-tariffication period by using HHI concentration index and concentration ratios based on the gross direct premium of the insurance firms. Our study finds a decline in concentration during the post full de-tariffication period. The result also suggests that decline in the concentration level during post full de-tariffication is directly attributable to significant rise in entry of new firms.

Keywords

De-Tariffication, Concentration, IRDAI, Non Life Insurance, HHI, Concentration Ratios.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Acharya, D. (2012). Competition in insurance sector: Issues and evidences. UGC Major Research Project Report, New Delhi.

  • Bajo, O., & Salas, R. (2002). Inequality foundations of concentration measures: An application to the Hannah-Kay indices. Spanish Economic Review, 4, 311-316.

  • Bikker, J., & Propescu, A. (2014). Efficiency and competition in the Dutch non-life insurance industry: Effects of the 2006 health care reform. DNB Working Paper No. 438/September 2014.

  • Insurance Regulatory Development Authority. (2006). Annual report 2005-06, Hyderabad. Retrieved from https://www.irdai.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo114&flag=1 Insurance

  • Regulatory Development Authority. (2007). Annual report 2006-07, Hyderabad. Retrieved from https://www.irdai.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo315&flag=1 Insurance

  • Regulatory Development Authority. (2008). Annual reports 2007-08, Hyderabad. Retrieved from https://www.irdai.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo462&flag=1 Insurance

  • Regulatory Development Authority (2016). Handbook on Indian Insurance Statistics, 2014-15, Retrieved from https://www.irdai.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo2807&flag=1

  • Kozlowski, R. T., & Perrin, T. (2009). Detariffication in non-life Insurance: Observations and opportunities, 11th Global Conference of Actuaries, Mumbai, India: Institute of Acturies of India. Retrieved from http://www.actuariesindia.org/downloads/gcadata/11thGCA/Detariffing%20Presentation.pdf

  • Kramaric, T. P., & Kitic, M. (2012). Comparative analysis of concentration in insurance markets in new EU member states. International Journal of Social, Behavioural, Educational, Economic, Business and Industrial Engineering, 6(6), 1322-1326.

  • Murat, G., Tonkin, R. S., & Jüttner, D. J. (2002). Competition in the general insurance industry. Zeitschrift für die gesamte Versicherungswissenschaft, 91(3), 453-481. Retrieved from https://doi.org/10.1007/BF03190772

  • Parida, T. K., & Acharya, D. (2016). Competition in Indian life insurance industry: Post liberalisation evidence. International Journal of Business Competition and Growth, 5(1-3), 110-135.

  • Post-Detariffing Pricing Strategy. (2007, Feb., 12). The Financial Express. Retrieved from http://www.financialexpress.com/archive post-detariffing-pricing-strategy/47129/

  • Sankaranarayanan, K. (2006). Transition to non-tariff regime-issues before Indian insurance industry, 8th Global Conference of Actuaries, Mumbai, India : Institute of Acturies of India. Retrieved from https://www.actuariesindia.org/downloads/gcadata/8thGCA/Transition%20To%20Non-tariff%20Regime_Karpagam%20Sanka.PDF

  • Sastry, D. V. S. (2012). Concentration and Indian insurance. Journal of Quantitative Economics, 10(2), 42-58.

  • Sathe, A. (2009). General Insurance Industry in India, 2009 Casualty Loss Reserve Seminar September 14, 2009, Chicago, U. S. A.: Causualty Acturial Society, (power point presentation). Retrieved from https://www.casact.org/education/clrs/2009/handouts/intnl1sathe.pdf

  • Sharku, G., & Shehu, S. (2016). Concentration of Albanian insurance market. Ekonomika a Management, 2016(3). Retrieved from https://econpapers.repec.org/RePEc:prg:jnleam:v:2016:y:2016:i:3:id:279

  • Stich, A. (1995). Insurance and concentration: The change of concentration in the Swedish and Finnish insurance market 1989-1993, Discussion paper in statistics and econometrics. Seminar of economic and social statistics. University of Cologne. Retrieved from http://hdl.handle.net/10419/45477


Abstract Views: 212

PDF Views: 1




  • De-Tariffication and Market Concentration in Non Life Insurance in India

Abstract Views: 212  |  PDF Views: 1

Authors

Gunjan
Assistant Professor, Shaheed Bhagat Singh College, University of Delhi, Delhi, India
Narender Kumar Garg
Professor, Department of Commerce, Maharishi Dayanand University, Rohtak, Haryana, India

Abstract


The historical step of de-tariffication has brought in various significant changes in Indian general insurance sector and change in concentration in the market is among one of them. Market concentration is used to study the dominance of major players in the market and about the level and nature of competition in the market. Present study measures the concentration in general insurance sector in India over the period 2002-2003 to 2012-2013 with an aim to examine the change in the market concentration level during the pre and post full de-tariffication period by using HHI concentration index and concentration ratios based on the gross direct premium of the insurance firms. Our study finds a decline in concentration during the post full de-tariffication period. The result also suggests that decline in the concentration level during post full de-tariffication is directly attributable to significant rise in entry of new firms.

Keywords


De-Tariffication, Concentration, IRDAI, Non Life Insurance, HHI, Concentration Ratios.

References