Abstract:
This research study is focused on the influence of firm-specific competitive conditions on
competitors' actions. Because only a few empirical studies have examined factors
shaping patterns of inter-firm rivalry within the general insurance industry field and the
subsequent effects on profit margins, there have been even fewer attempts made to link
patterns of inter-firm rivalry to firm-specific competitive conditions as well. There is,
however, a great interest in the dynamics of non-life insurance firms' strategic behaviour
and the evolution of competitive advantage over time. This strategic interaction will
typically be studied at given points in time and an attempt will be made to model it
dynamically.
New insights into why the strategies of some firms lead to competitive superiority over
time but those of others do not may, therefore, be gained by examining how firms'
market domain overlap and multi-market contact influence the dynamics of the inter-firm
rivalry of the general insurance industry. General insurance firms whose market entries
and exits are key among strategic moves will also be studied. Such competitive and
counter-competitive actions represent clear, offensive challenges that invite competitor
responses on the one hand, and obvious signals of retreat or acquiescence on the other.
