Previous empirical studies, such as Mayers and Smith (1990), Tufano (1996), Dionne and Garand (2003) and Cole and McCullough (2006) focus their attention on financial considerations, such as agency cost, tax, firm size, costs of external financing, financial distress, organization form and the reinsurance market conditions. This study considers the existing literature by exploring frictions from the competition and the market structure that influence underwriting risk management in the property and liability insurance industry.