Tytuł:

Benchmark Ratio of Insurance Penetration (BRIP) as a New Relative Measure of Insurance Development and Benchmarks in Insurance

Tytuł publikacji grupowej:

Financial Sciences. Nauki o Finansach

Tytuł odmienny:

Względna miara rozwoju ubezpieczeń BRIP i benchmarki w ubezpieczeniach

Autor:

Pobłocka, Agnieszka

Temat i słowa kluczowe:

insurance market ; development of the insurance market ; benchmark ; benchmark ratio of insurance penetration ; rynek ubezpieczeń ; rozwój rynku ubezpieczeń ; względny wskaźnik rozwoju ubezpieczeń ; BRIP

Opis:

Financial Sciences. Nauki o Finansach, 2024, vol. 29, no. 1, s. 24-36

Abstrakt:

Aim: In various fields of science, certain patterns are used to describe and compare phenomena and reference points (benchmarks), e.g.: reference rates (benchmark rates), reference ratios (benchmark ratio), or comparative analyses (the benchmarking) (EY, 2021). In insurance, premium, density and penetration, among others, are used to describe market development. To compare insurance markets, the average is usually used, e.g. average premium, average density or penetration rate. However, the measures used are limited – premium and density do not take into account economic development – or have been ‘devalued’ (penetration rate is often with different premium and GDP growth rates). In effect, a new, more robust paradigm is being sought, i.e. a new insurance growth pattern. Methodology: This paper analyses and evaluates the benchmark ratio of insurance penetration (BRIP) proposed by (Zheng et al., 2008 and 2009) as a new measure of insurance development and examined its advantages and disadvantages. The arithmetic mean was also analysed as a benchmark for comparing different insurance markets. Findings: The BRIP indicator should be used with caution, as it strongly depends on the benchmark used for comparison. If it is adopted at the level of the arithmetic mean for the whole market, the analysis results may be incorrect when the distribution of the examined phenomenon does not have a central tendency. Implications: The results of the study are a new contribution to the evaluation and application of the BRIP indicator in insurance theory. Originality/value: Zheng et al. (2008, 2009) proposed the BRIP indicator as a new benchmark for the development of insurance markets, without knowing that it cannot always be applied. The author of this study fills this gap and shows when this indicator cannot be applied (DeepL-assisted translation).

Wydawca:

Publishing House of Wroclaw University of Economics and Business

Miejsce wydania:

Wrocław

Data wydania:

2024

Typ zasobu:

artykuł

Identyfikator zasobu:

doi:10.15611/fins.2024.1.03

Język:

eng

Powiązania:

Financial Sciences. Nauki o Finansach, 2024, vol. 29, no. 1

Prawa:

Pewne prawa zastrzeżone na rzecz Autorów i Wydawcy

Prawa dostępu:

Dla wszystkich zgodnie z licencją

Licencja:

CC BY-SA 4.0

Lokalizacja oryginału:

Uniwersytet Ekonomiczny we Wrocławiu