Analyzing the determinants of operational efficiency of the non-life insurance companies in the Philippines

• Main Author: Bautista, Annalene M.
• Format: text
• Language: English
• Published: Animo Repository 2019
• Subjects: Insurance companies—Philippines; Insurance—Finance; Finance and Financial Management; Insurance
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/6380; https://animorepository.dlsu.edu.ph/context/etd_masteral/article/13441/viewcontent/Annalene_M_Bautista_Thesis_November_2019_2.pdf
• Institution: De La Salle University

According to the Philippine Insurers and Reinsurers Association, there will be a lot of mergers and acquisitions that will happen in the future as the Paid Up Capital (PUC) will continue to increase until 2022. The possibility of mergers and acquisitions will lead to market concentration. However, Quiet-life hypothesis further argues that as the market concentration increases, the efficiency of the company decreases. The general objective of he study is to find out the determinants of the efficiency of non-life insurance companies in the Philippines. Secondary data on financial performance were collected from insurance companies from the period 2013 to 2017. The study will be a causal-predictive study and ill be focusing on the breadth of the factors affecting efficiency. The formulation of the variables was suggested by the Quiet-life hypothesis (QLH) which is an extension of the classical Industrial Organization theory, Structure-Conduct-Performance (SCP) theory. Another theory will be utilized to suggest for the micro-level financial variables named institutional theory.