The impact of deregulation on the German and UK life insurance markets: an analysis of efficiency and productivity between 1991-2002

This paper provides an intra and inter-country assessment of deregulation and industry efficiency in the European insurance industry. The impact of deregulation is expected to be magnified within an analysis of the Continental maximal regulated German industry and the Anglo minimal regulated UK industry. Results suggest that while increased competition in the UK is reflected in higher intra-industry cost efficiency; an inter-industry analysis indicates that the German industry dominates UK cost efficiency both before and after deregulation. These results maybe explained by the efficiency enhancing nature of German regulation.