Factors Affecting the Performance of Life Insurers in Thailand

DOI: 10.5176/2251-1997_AF-80

Authors: Li Li

Abstract:

This study investigates the possible factors affectingthe performance of 24 life insurance companies in Thailand overthe period 2001 – 2008. The evidence indicates that market shareand technical efficiency are positively related to the life insurer’snet written premium, return on assets and return on equity. Thisresult is consistent with the relative market power hypothesis andefficient-structure hypothesis. Further, it is found that the totaldeposits in the Thai commercial banks are positively related tothe life insurance companies’ performance. However, it seemsthat the real GDP growth is not affecting the performance of lifeinsurers in Thailand.

Keywords: Performance, Life insurance, Thailand