Demand for Reinsurance in UK property-casualty insurance industry

WU, RENFENG (2011) Demand for Reinsurance in UK property-casualty insurance industry. [Dissertation (University of Nottingham only)] (Unpublished)

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Reinsurance demand has been one of the most controversial issues in the ground of finance during the past decades. Many researchers have analyzed the relationships between many reinsurers‘ financial factors and their reinsurance purchases. These existing researches give a briefly structure when dealing with reinsurance problems. With the objective to provide an insight look into factors influencing reinsurance levels in insurance companies; this study analyzed the level of reinsurance among 468 UK property-casualty insurance companies within a 25 year time scale. Regression analysis is employed as the basic model in the research. In addition, this study measured the relationships between reinsurance demands and other financial factors through a financial management way, as well as a risk management process, which give another aspect when using reinsurance.

This study demonstrates 9 different regression results, as the complexity of measurement on reinsurances ratios, as well as the complexity of the data sets. 3 different measurements of reinsurance ratios and 3 sample sizes varied with different scales of definitions are used in the research. Company leverage, line of business, solvency, liquidity, forms, profitability, size and tax rates are used as influencing factors of reinsurance purchase. In general, all of our models contain a relatively low explanatory power and some statistically insignificant values. However, the research results do become better and better as our sample size changes. It is also found that reinsurance play a different role in companies which are going to close down or start up, compared to their roles in normal operating companies.

This research shows some analysis tools for insurers and reinsurers, when facing decisions of buying reinsurance or not. However, unavoidable limitations in the research promote further studies.

## Key words: Demand for Reinsurance Property-casualty Reinsurance Market

Item Type: Dissertation (University of Nottingham only)
Keywords: ## Key words: Demand for Reinsurance Property-casualty Reinsurance Market
Depositing User: EP, Services
Date Deposited: 26 Apr 2012 10:25
Last Modified: 19 Sep 2016 21:41

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