Rationale of underwriters’ pricing conduct on competitive insurance market |
| |
| Authors: | Vsevolod K Malinovskii |
| |
| Institution: | Central Economics and Mathematics Institute (CEMI) of Russian Academy of Science, 117418, Nakhimovskiy prosp., 47, Moscow, Russia |
| |
| Abstract: | Underwriters’ desire to show a good annual review is known to be a rationale of the aggressive pricing conduct. On the competitive insurance market, it impacts the global insurance processes and can lead to the competition-originated underwriting cycles. Applying Lundberg’s model of the annual probability mechanism of insurance, we model the influence of a price reduction on migration and consequently on the company’s annual expansion, revenue and solvency. |
| |
| Keywords: | Manager&rsquo s pricing conduct Competition Expansion Revenue Solvency |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
