<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper deals with the influence of competition on soundness of Croatian insurers using the Boone indicator when measuring competition. The authors analyse Croatian insurers that operated over the pre-EU accession period 2008 – 2012 as well as in the period 2013 – 2017, i.e. after the accession to the EU. Several firm-level, industry-level and macroeconomic variables are used in the research. The findings of the analysis are twofold. Specifically, the Boone indicator reveals the impact of competition on the performance of efficient insurers in post-EU accession period only accounting for the reallocation effects proving that efficient insurers make higher profits. Regarding the determinants of the insurers’ soundness, premium to surplus ratio and inflation rate play significant role in pre - EU accession period whereas reinsurance and GDP growth rate are statistically significant after EU accession. Moreover, the competition increased in the years after the EU accession. Robustness check provides similar results.</p></abstract>

This paper deals with the influence of competition on soundness of Croatian insurers using the Boone indicator when measuring competition. The authors analyse Croatian insurers that operated over the pre-EU accession period 2008 – 2012 as well as in the period 2013 – 2017, i.e. after the accession to the EU. Several firm-level, industry-level and macroeconomic variables are used in the research. The findings of the analysis are twofold. Specifically, the Boone indicator reveals the impact of competition on the performance of efficient insurers in post-EU accession period only accounting for the reallocation effects proving that efficient insurers make higher profits. Regarding the determinants of the insurers’ soundness, premium to surplus ratio and inflation rate play significant role in pre - EU accession period whereas reinsurance and GDP growth rate are statistically significant after EU accession. Moreover, the competition increased in the years after the EU accession. Robustness check provides similar results.

The Boone Indicator as Determinant of Croatian Insurance Market Soundness

University Department of Professional Studies

South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"The Boone Indicator as Determinant of Croatian Insurance Market Soundness"}

This paper deals with the influence of competition on soundness of Croatian insurers using the Boone indicator when measuring competition. The authors analyse...

The Boone Indicator as Determinant of Croatian Insurance Market Soundness

Published Online: Dec 30, 2019

Page range: 1 - 12

DOI: https://doi.org/10.2478/jeb-2019-0009

Keywords
soundness, Boone indicator, Croatian insurers

© 2019 South East European Journal of Economics and Business, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The Boone Indicator as Determinant of Croatian Insurance Market Soundness

Published Online: Dec 30, 2019

Page range: 1 - 12

DOI: https://doi.org/10.2478/jeb-2019-0009

Keywordssoundness, Boone indicator, Croatian insurers

© 2019 South East European Journal of Economics and Business, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
soundness, Boone indicator, Croatian insurers