Financial integration within the European Union: Towards a single market for insurance

Beckmann, Rainer and Eppendorfer, Carsten and Neimke, Markus (2002): Financial integration within the European Union: Towards a single market for insurance. Published in: IEW Diskussionsbeiträge No. 40 (2002)

Abstract

Our study analyses the extent of integration of the EU market for life and non-life insurance. The main integration indicator used is the market share (premium based) of foreign companies in domestic markets. For the calculation of this indicator, three different kinds of foreign presence are taken into account: foreign presence through merger and acquisitions, through branches and agencies and direct cross-border sales without physical presence. Whereas the static view reveals a high degree of national fragmentation the dynamic view indicates advancing integration. The results also show that integration is even less advanced for life than for non-life insurance and that mergers and acquisitions are the dominant strategy to access a foreign market. Besides summarising the liberalisation history of the European insurance sector and discussing consumer benefits from further integration, the study contributes to a better understanding of obstacles to insurance market integration.

• Item Type: MPRA Paper
• Institution: Ruhr-Universität Bochum
• Language: English
• Keywords: European Financial Integration; Insurance Sector; Internal Market
• Subjects: K - Law and Economics > K2 - Regulation and Business Law > K23 - Regulated Industries and Administrative Law; G - Financial Economics > G2 - Financial Institutions and Services > G22 - Insurance ; Insurance Companies ; Actuarial Studies; G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance