Date of Award

5-2026

Document Type

Thesis

Degree Name

Bachelor of Arts (BA)

Department

Social Sciences

First Advisor

Khemraj, Tarron

Area of Concentration

Financial Economics

Abstract

This thesis applies the Structure-Conduct-Performance (SCP) model to conduct an industry analysis of the United States life insurance sector, integrating foundational economic theory to explain observed market behavior. The U.S. Life Insurance Industry exhibits oligopolistic characteristics, high regulatory barriers to entry, moderate product differentiation, and disciplined pricing behavior. Market share data is drawn from NAIC reports, supplemented by surveys conducted through LIMRA, and company-level financial data. The analysis examines seven key areas: the definition of the industry, the structure of the industry, the conduct of firms within the industry, the performance of the industry, the linkage of SCP constructs to one another, external environment variables affecting performance, and policy and strategic implications. The study further applies five economic theories, which are: the SCP framework, game theory, adverse selection, moral hazard, and imperfect information. Each of these theoretical models has been developed by scholars such as Bain (1959), Von Neumann & Morgenstern (1944), Akerlof (1970), Arrow (1963), and Stiglitz (2000). The final section evaluates the limitations of the SCP framework and introduces the New Industrial Organization (NIO) approach as a complementary perspective. Findings indicate that while structural concentration supports stable profitability and strategic profitability, emerging InsurTech competitors and changing interest rates are reshaping the competitive environment.

Rights

The author has granted New College of Florida the nonexclusive right to archive, make accessible, and distribute for educational purposes this work in whole or in part in all forms of media, now or hereafter known. The copyright of this work remains with the author.

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