Abstract

Journal of Actuarial Practice

Volume 8, Numbers 1 and 2, 2000


Concentration in the Property and Liability Insurance Market by Line of Insurance

Edward Nissan and Regina Caveny

Abstract

This paper uses an National Association of Insurance Commissioners (NAIC) 1995 data set to examine the concentration of property and liability insurance by line of insurance in the U.S. The primary measure of concentration used  is the Herfindahl index. The largest 100 affiliates are divided into three largest sets of 20, 30, and 50. We find that the homeowners line is the most concentrated line and commercial auto physical damage is the least concentrated line, with the top 20 affiliates commanding the largest between-set and within-set contributions.

Key words and phrases: Herfindahl index, coefficient of variation, variance decomposition, between-set and within-set contributions, numbers equivalent.

Edward Nissan

Dept of Economics and International Business

University of Southern Mississippi

PO Box 5072

Hattiesburg MS 39406-5072

 

Regina Caveny

Dept of Economics and International Business

University of Southern Mississippi

PO Box 5072

Hattiesburg MS 39406-5072


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