The Underwriting Cycle in Thai Fire Insurance Industry

Sukkhawadee, Jarut (2005) The Underwriting Cycle in Thai Fire Insurance Industry. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Even though the Asian insurance industry has grown significantly in the past decade, the fluctuation in operating results of insurance companies or the underwriting cycle could be observed in many countries, including Thailand. To the extent that the underwriting cycle generates the fluctuation in operating results, profits and loss ratio in insurance industry, this phenomenon is considered to be a major threat that all insurers need to be aware of and develop some measures to mitigate its adverse effects.

This dissertation is aiming to develop a study regarding the underwriting cycle in Thai fire insurance industry by exploring the existence, causes and solutions to this phenomenon from both academic and empirical perspectives. The combination of industry secondary data collection and conducting telephone interviews are utilised as methodologies of this study.

After all study methodologies and relevant analyses have been conducted, the author concluded that the underwriting cycle exists in Thai fire insurance industry with an average cycle length of six and a half years. This finding is strongly supported by empirical evidences derived from telephone interviews.

The empirical finding shows that the most influential hypotheses regarding the causes of underwriting cycle in Thai fire insurance industry, which are partly consistent with academic findings, are capital or capacity constraint and market structure fluctuation or competitor-driven pricing hypotheses. In terms of solutions to the underwriting cycle, an empirical finding shows that a combination of riding the cycle and countercyclical strategies, which is consistent with the academic finding, seems to be the most influential way to manage the underwriting cycle.

Item Type: Dissertation (University of Nottingham only)
Keywords: underwriting cycle, underwriting profit, fluctuation in profit, fire insurance industry
Depositing User: EP, Services
Date Deposited: 08 Dec 2005
Last Modified: 25 Oct 2016 00:08
URI: http://eprints.nottingham.ac.uk/id/eprint/20062

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