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Diversification strategies and risk: Does ownership structure matter? Evidence from the Chinese non–life insurance industry

Guan-Chih Chen

International Review of Economics & Finance2026https://doi.org/10.1016/j.iref.2026.104903article
AJG 2ABDC A
Weight
0.37

Abstract

This study uses a quantile regression model augmented with a Fourier expansion to examine the effects of product and geographic diversification on underwriting and asset risks across different ownership structures in the Chinese non–life insurance market. An analysis of the financial data of Chinese- and foreign-funded insurers from 2014 to 2023 (during the regulatory transition from the 12th to the 13th Five Year Plans and into the first 3 years of the 14th Five-Year Plan) reveals that the aforementioned effects vary across ownership structure and risk distribution. Product diversification is associated with lower risk for Chinese-funded insurers with strong operating stability but higher risk for foreign-funded insurers. Moreover, geographic diversification yields limited net benefits in terms of risk reduction, with concurrent product and geographic diversification increasing tail risk. Risk mitigation appears to be strongest when the product scope is broadened while the geographic scope remains restrained.

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https://doi.org/https://doi.org/10.1016/j.iref.2026.104903

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@article{guan-chih2026,
  title        = {{Diversification strategies and risk: Does ownership structure matter? Evidence from the Chinese non–life insurance industry}},
  author       = {Guan-Chih Chen},
  journal      = {International Review of Economics & Finance},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1016/j.iref.2026.104903},
}

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.