Work

Market Structure, Brokers, and Insurer Performance: Evidence From the Non-life Insurance Market in North Macedonia

Year: 2025

Type: article

Abstract: The existing literature on the relationship between insurance market structure and insurer performance neglects the role of intermediaries in affecting insurers' behavior.This article aims to fill this gap by examining the relationship between brokerage market structure and insurer performance in the non-life insurance market in North Macedonia.Using unique data about bilateral premium flows between insurers and brokers for the period 2013 -2022, we construct an insurer-level measure of competition to encapsulate the variation in the competition considering both types of market players, insurers and brokers.We find that collaboration with more competitive brokers distorts insurers' oligopolistic behavior, enforcing a more competitive environment, improving insurers' efficiency and driving down insurance prices.The findings provide policy implications for regulators and policymakers regarding how a less restrictive regulatory environment for intermediaries may impact insurers' behavior in more concentrated markets.

Source: Ekonomska misao i praksa

DOI: 10.17818/emip/2025/21

Authors: Bojan Srbinoski, Klime Poposki, Patricia Born, Mirko Kraft

Institutions: University "St. Kliment Ohridski" - Bitola, Florida State University, Coburg University of Applied Sciences

Language: English

Topic: Insurance and Financial Risk Management

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W4409775492

FWCI: 0.947

Cites: 35

Cited by: 1

Related to: 10