IDEAS home Printed from https://ideas.repec.org/a/auv/jipbud/v26y2022i4p93-122.html
   My bibliography  Save this article

The Impact of Market Concentration on Insurance Penetration Rate: Panel Data Approach (in Persian)

Author

Listed:
  • Niakan, Leili

    (Insurance Research Center, Tehran, Iran)

  • Rajaee Harandi, Saeedeh

    (Department of Management, Faculty of Social Sciences and Economics, Al-Zahra University, Tehran, Iran.)

Abstract

The insurance industry is considered as one of the indicators of development, and as a major economic institution that supports the activities of other institutions. Therefore, the structure, operation, and efficiency of the country's insurance market play a significant role in the growth and development of the industry as well as the growth and development of the economy. Considering the importance and impact of market structure on the performance of the insurance industry, this study examines the degree of concentration in the Iranian and selected countries’ insurance market, and its impact on insurance penetration rate for the period 2011-2018. The Herfindahl-Hirschman index is used to measure the concentration and determine the structure of the insurance market. Then, the indicators of economic freedom, per capita income, and financial development are used as mediating variables. The relationships between variables are examined by the method of analysis of integrated patterns and using a combination of cross-sectional data and time series. The results show that the market concentration index has a negative and significant relationship with the insurance penetration rate in the selected countries. In addition, the positive and significant impact of per capita income and financial development on insurance penetration is confirmed. However, the results do not show a significant relationship between the index of economic freedom and insurance penetration in the selected countries.

Suggested Citation

  • Niakan, Leili & Rajaee Harandi, Saeedeh, 2022. "The Impact of Market Concentration on Insurance Penetration Rate: Panel Data Approach (in Persian)," The Journal of Planning and Budgeting (٠صلنامه برنامه ریزی Ùˆ بودجه), Institute for Management and Planning studies, vol. 26(4), pages 93-122, March.
    • Handle: RePEc:auv:jipbud:v:26:y:2022:i:4:p:93-122
    as

    Download full text from publisher

    File URL: http://jpbud.ir/article-1-2020-en.pdf
    Download Restriction: no
    File URL: http://jpbud.ir/article-1-2020-en.html
    Download Restriction: no
    File URL: http://jpbud.ir/article-1-2020-fa.html
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Market Structure; Market Concentration; Insurance Penetration; Economic Freedom Index; Per Capita Income.;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:auv:jipbud:v:26:y:2022:i:4:p:93-122. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nahid Jebeli (email available below). General contact details of provider: https://edirc.repec.org/data/irpdair.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.