Insurance Markets with Loss-Prevention Activity: Profits, Market Structure, and Consumer Welfare

1986 ◽  
Vol 17 (2) ◽  
pp. 227 ◽  
Author(s):  
Harris Schlesinger ◽  
Emilio Venezian
Keyword(s):  
Market Structure ◽  
Consumer Welfare ◽  
Insurance Markets ◽  
Loss Prevention ◽  
Prevention Activity

Market structure, efficiency and profitability of insurance companies in Ghana

2015 ◽  
Vol 10 (4) ◽  
pp. 648-669 ◽  
Author(s):  
Abdul Latif Alhassan ◽  
George Kojo Addisson ◽  
Michael E. Asamoah
Keyword(s):  
Market Structure ◽  
Life Insurance ◽  
Insurance Industry ◽  
Consumer Welfare ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Markets ◽  
Ample Evidence ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of the regulatory-driven market structure on firm pricing behaviour by testing the structure-conduct-performance (S-C-P) hypothesis for both life and non-life insurance markets in Ghana. Design/methodology/approach – Using a panel data on 14 life and 22 non-life insurers from 2007 to 2011, the authors employed the Herfindahl Hirschman Index and concentration ratio as proxies for the S-C-P hypothesis while efficiency scores were estimated using the data envelopment analysis technique to proxy for the efficient structure (ES) hypothesis. The dependent variable, profitability was measured as return on assets while controlling for size, underwriting risk, leverage, GDP growth rate and inflation. The models were estimated using the panel corrected standard errors of Beck and Katz (1995) and random effects estimations. Findings – The results from the empirical estimation provide ample evidence in support for ES hypothesis for both life and non-life insurance markets. While conflicting results was found for SCP hypothesis in the non-life insurance market, it was rejected in the life insurance market. The findings also point to an increasing level of competition in both life and non-life insurance industry in Ghana though they still remain concentrated with the life insurance sector having high levels of efficiency compared to the non-life sector. Practical implications – The findings of the study will enhance the understanding of firm behaviour in the new markets created to shape regulatory and competition policies of the regulator to promote consumer welfare while ensuring a stable industry to enhance its role in economic development. Originality/value – This is the first study to test the market power and efficient hypotheses on the insurance industry in Ghana. To the best of the author’s knowledge, this study is the first to examine the determinants of profitability in the non-life insurance market.

Ensuring Competition in the Telecommunication Business Environment in Ghana

2014 ◽  
pp. 73-87
Author(s):  
Stephen E. Armah
Keyword(s):  
Market Structure ◽  
Relevant Literature ◽  
Secondary Data ◽  
Consumer Welfare ◽  
Business Environment ◽  
Primary Data ◽  
Regulatory Body ◽  
Telecommunication Sector ◽  
Price Collusion ◽  
The Impact

This chapter investigates the possibility of anti-competitive behavior in the Ghana telecommunication sector and determines exploratorily if there is a need for the enactment of anti-trust laws to protect social welfare. The chapter first evaluates the available relevant literature on the subject, assesses the current situation, evaluates the current market structure, and identifies how market power is affecting consumer welfare. Reviews of available literature and secondary data were conducted to establish the relevant conditions for the applicability of such a law. Next, primary data was collected from stakeholders to solicit views on the impact of market structure on pricing and the need for anti-trust laws. Results suggest the Ghana telecommunication sector is open to “cartelization,” which can result in different forms of price collusion despite the existence of a state regulatory body (The National Communications Authority, NCA). The study highlights the Ghanaian consumers' susceptibility to unfair marketing practices due to the possible absence of pertinent anti-trust legislation.

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