New study

Co-Insurance Pools are efficient

According to a study commissioned by GDV, co-insurance pools lead to efficiencies in the production and distribution of insurance.

GDV has commissioned a study from the renowned economist Prof. Dr. Roman Inderst (University of Frankfurt/Main) on the economic effects of co-insurance pools. For the first time, this study explores the efficiencies achievable by various structures and methods of risk sharing and risk transfer. The study can be downloaded for free under the link at the end of this text.

The study comes to the conclusion that co-insurance pools generally lead to sizable efficiency gains, which tend to increase with a stronger level of cooperation within a co-insurance pool. Other methods of risk sharing (e.g. broker-led pools) or of risk transfer, which typically only allow for a lower level of cooperation, therefore usually generate fewer efficiencies than co-insurance pools.

The European Commission is currently examining whether to prolong the Insurance Block Exemption Regulation (IBER), which provides an exemption for co(re-)insurance pools and joint statistics under certain circumstances. The IBER expires on 31 March 2017. Within this context, GDV sees the study as a constructive contribution to the discussion.

Efficiencies of Coinsurance Pools


* Introduction
* The Economics and Business of Insurance
* Economic Efficiencies: Background
* Efficiency Gains of Co-insurance Pools
* Conclusion


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