The market share of voluntary auto insurance in Taiwan has always been the highest. The average rate is about 33 percent for the past five years. Such a high market share in terms of operating results is bound to vastly affect the company''s overall operating results. The goals of this study are designed to explore the voluntary auto insurance market structure and the relationship between business performances of liability-insurance companies.
At the aspect of market structure under voluntary auto insurance industry in Taiwan is going to become larger and larger while the trend is consortium. The market share of large enterprises also increases year by year, so as the degree of market concentration. At the conduct of manufacturers, the competitive behavior of manufacturers will help improve the market structure, and the investment in research and development with the performance mutually influence.
The aspect of individual companies, which use profit ratio of within10 years (1997-2006), researches its performance. The variables of market structure are market share, the proportion of auto insurance business, growth rate of premium, the rate of compulsory automobile liability business, the number of employees, Capital, and branch. The significant variables are market share, the proportion of auto insurance business, Capital, and branch.
In whole industry, this study uses the profit ratio of 20 years’ data (1987-2006) to discuss its operating performance. There are 12 variables that relate to market structure: the rate of compensation (loss of vehicle insurance, theft insurance, third party liability Insurance), the concentration of insured rate (loss of vehicle insurance, third party liability insurance), the adjusting premium rate (previous year, current year), the ratio of passenger cars business
(premiums, insured number), interest rates, and economic growth rate. Findings the significant variables are the rate of compensation, concentration, the adjusting premium rate of previous year and the ratio of passenger cars business.