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Vol. 8 No. 3 (2020)
September 2020

Articles

Foreign capital impact on insurance market development in EU-15 countries

https://doi.org/10.15678/EBER.2020.080312

Published 2020-08-26

  • Sławomir I. Bukowski
    • ,
  • Marzanna Lament

Sławomir I. Bukowski
Kazimierz Pulaski University of Technologies and Humanities in Radom

Marzanna Lament
Kazimierz Pulaski University of Technologies and Humanities in Radom

Abstract

Objective: The objective of the article is to investigate how foreign capital influenced the development of insurance markets in EU-15 countries.

Research Design & Methods: A critical review of literature is undertaken, contents of factors which influence development of insurance markets are analysed, and econometric methods are applied. A panel model is constructed and results of its estimation are analysed.

Findings: Insurance markets in particular countries develop under the influence of many factors. The share of foreign insurance companies is treated as a structural factor. There is previous research into this subject was conducted, whose results do not confirm a clear impact of foreign capital on the insurance market’s development. The study indicates that the development of insurance markets – measured with the penetration rate and with the ratio of insurance density – is affected by shares of foreign capital in life insurance companies.

Implications & Recommendations: To verify the hypothesis concerning the impact of foreign capital on the development of insurance markets, scholarship requires further studies of another group of countries (insurance markets).

Contribution & Value Added: This study will contribute to the development of theories concerning factors of the development of insurance markets.

Keywords

international finance, insurance market, insurance companies, foreign capital, panel data model, random estimation.

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