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THE NATURE AND DEVELOPMENT OF THE GENERAL INSURANCE INDUSTRY IN AUSTRALIA TO 1973
Author(s) -
Keneley Monica,
McDonald Tom
Publication year - 2007
Publication title -
australian economic history review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.493
H-Index - 16
eISSN - 1467-8446
pISSN - 0004-8992
DOI - 10.1111/j.1467-8446.2007.00212.x
Subject(s) - tariff , competition (biology) , collusion , business , industrial organization , insurance industry , market economy , international trade , economics , actuarial science , ecology , biology
The development of the insurance industry in Australia in the twentieth century was fundamentally shaped by a collusive code of conduct called the tariff. This arrangement, established to overcome problems of uncertainty, initially benefited both tariff and non‐tariff firms by enhancing market stability. It also reduced competition. The collusive agreements gradually broke down, however, as new entrants and products entered the market in the 1950s. Self‐regulation gradually gave way as the ‘rules of the game’ changed. The result was a period of instability before new competitive practices, and more direct and specific regulatory requirements emerged in the 1970s.