The market-structure performance relationship in the non-life insurance sector of the ASEAN 5 countries from 2008 to 2013

• Main Authors: Calamba, Jude N., Dimpas, Denise Marie G., Herrera, Larisse C., Paredes, Jose Romeo Gabriel P.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Insurance > Southeast Asia
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7553
• Institution: De La Salle University

This study identifies the relationship between the market structure and market conduct variables and profitability. This also tests the applicability of the structure-conduct-performance hypothesis in the non-life insurance sector of the ASEAN 5 countries from the period 2008 to 2013. Using fixed effect panel data regression model to test data, the results show that there is a dynamic relationship between market liberalization, market concentration, and profitability. At low levels of liberalization, then market concentration and profitability will share a positive relationship this is in line with the assumptions of the SCP hypothesis. However, at higher levels of liberalization, this relationship weakens and is sometimes inversed depending on how high the levels of liberalization are, the SCP hypothesis may ultimately be rejected for freer and more concentrated markets.