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Financial integration within the European Union: Towards a single market for insurance

Author

Listed:
  • Beckmann, Rainer
  • Eppendorfer, Carsten
  • Neimke, Markus

Abstract

Our study analyses the extent of integration of the EU market for life and non-life insurance. The main integration indicator used is the market share (premium based) of foreign companies in domestic markets. For the calculation of this indicator, three different kinds of foreign presence are taken into account: foreign presence through merger and acquisitions, through branches and agencies and direct cross-border sales without physical presence. Whereas the static view reveals a high degree of national fragmentation the dynamic view indicates advancing integration. The results also show that integration is even less advanced for life than for non-life insurance and that mergers and acquisitions are the dominant strategy to access a foreign market. Besides summarising the liberalisation history of the European insurance sector and discussing consumer benefits from further integration, the study contributes to a better understanding of obstacles to insurance market integration.

Suggested Citation

  • Beckmann, Rainer & Eppendorfer, Carsten & Neimke, Markus, 2002. "Financial integration within the European Union: Towards a single market for insurance," MPRA Paper 5280, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:5280
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    References listed on IDEAS

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    4. Beckmann, Rainer & Hebler, Martin & Kösters, Wim & Neimke, Markus, 2000. "Theoretische Konzepte zum Europäischen Integrationsprozeß: Ein aktueller Überblick [Theoretical concepts for the process of European integration: A current overview]," MPRA Paper 35703, University Library of Munich, Germany.
    5. Ansgar Belke & Carsten Eppendorfer & Jens Michael Heine, 2002. "Zur Bedeutung unterschiedlicher Finanzmarktstrukturen für den geldpolitischen Transmissionsmechanismus in der EWU," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 200/2002, Department of Economics, University of Hohenheim, Germany.
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    7. Belke, Ansgar, 2002. "Towards a Balanced Policy Mix under EMU: Co-ordination of Macroeconomic Policies and ‘Economic Government’?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 17, pages 21-53.
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    9. Beckmann, Rainer & Eppendorfer, Carsten & Neimke, Markus, 2002. "Market Access Strategies in the EU Banking Sector - Obstacles and Benefits towards an integrated European Retail Market," MPRA Paper 5273, University Library of Munich, Germany.
    10. Belke, A. & Gros, D., 1998. "Evidence on the Costs of Intra-European Exchange Rate Variability," Other publications TiSEM 4158e24b-7a19-4a4b-9fb8-4, Tilburg University, School of Economics and Management.
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    12. Ansgar Belke, 2001. "Too Big to Fail: Bankenkonkurs, "Bailout" und Wählerstimmenkalkül," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 192/2001, Department of Economics, University of Hohenheim, Germany.
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    Citations

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    Cited by:

    1. Trigo Gamarra, Lucinda, 2008. "The effects of liberalization and deregulation on the performance of financial institutions: The case of the German life insurance market," Thuenen-Series of Applied Economic Theory 93, University of Rostock, Institute of Economics.
    2. Gheorghe MOROÅžAN, 2015. "INTEGRATION OF ROMANIAN INSURANCES MARKET IN EU Abstract : One of the most important phenomena of the last decade has been the convergence of the financial services industry, especially the capital an," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 4(Special I), pages 1-35, august.
    3. Dimitrios G. Giantsios & Athanasios G. Noulas, 2020. "Cost Efficiency and Convergence in the European Nonlife Insurance Industry," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(6), pages 1-6.
    4. Maudos, Joaquin & Pérez, Francisco, 2004. "Convergencia, integración y competencia en los mercados financieros europeos [Convergence, integration and competition in the European financial markets]," MPRA Paper 15889, University Library of Munich, Germany, revised 2004.

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    More about this item

    Keywords

    European Financial Integration; Insurance Sector; Internal Market;
    All these keywords.

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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