Efficient Monopolies
The Limits of Competition in the European Property Insurance Market
Ungern-Sternberg, Thomas von Department of Economics, University of Lausanne
Print publication date: 2004 (this edition)
Published to Oxford Scholarship Online: April 2004
Print ISBN-13: 978-0-19-926881-8
doi:10.1093/0199268819.003.0005
Thomas Von Ungern-Sternberg
Compares the premium rate of the state property insurance monopolies in large parts of Switzerland with those of the private insurance companies active in the rest of the country. The state monopolies have a 40% lower premium rate, operate with substantially lower administrative costs, spend considerably more on prevention, and have lower claims rates. Integrating prevention and insurance seems to be a particularly efficient solution.
Keywords: premium rate, prevention, state monopoly, Switzerland,
doi:10.1093/0199268819.003.0005
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