The bigger, the better: A robust Philippine non-life insurance industry bolstered by efficient insurer taxation rates

• Main Author: Yuvienco, Ribomapil C.
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Insurance > Philippines; Insurance companies > Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/5520
• Institution: De La Salle University

The study aimed to establish the possible existence of the Supply Leading Hypothesis (SLH) within the context of the ASEAN Non-Life Insurance Industry and the Philippine Non-Life Insurance Industry in order to make a case for the latter in lowering the taxes imposed on local non-life insurance players. By gathering data concerning the Gross Written Premiums (GWP), Insurance Penetration Rates (IPR) and Gross Domestic Product (GDP) and subjecting these variables to different statistical treatment, the study was able to prove a long-run relationship among these variables within the ASEAN setting. When set under the Philippine setting, a short-run relationship was discovered among these variables. The study also presented a break-even analysis in arguing for the possibility of lowering taxes imposed upon the non-life insurance industry by recompensing the government through an increase of non-life insurance policies to be sold by local non-life insurance players.