Financial inclusion, market concentration and underwriting performance: Empirical evidence from Central Eastern and Southeastern European countries

Srbinoski, Bojan and Kjosevski, Jordan and Poposki, Klime and Mecheski, Stevcho (2025) Financial inclusion, market concentration and underwriting performance: Empirical evidence from Central Eastern and Southeastern European countries. Economics and Business Review, 11 (1). pp. 133-156. ISSN 2392-1641

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Abstract

Synergies or trade-offs may arise between financial inclusion and financial stability conditional on the type of financial market and the level of market competition. The growing systemic relevance of insurers brings forward the question whether financial inclusion has impact on insurance markets. We focus on the less inclusive and less competitive Eastern European (EE) and former Soviet Union (FSU) non-life insurance markets and examine firstly, the link between financial inclusion and insurers’ underwriting performance, and secondly, whether the insurance market concentration affects the inclusion-performance nexus. We find that more inclusive markets have better aggregate underwriting performance. The positive effects of financial inclusion on insurers’ performance are stronger in more competitive insurance markets. The results suggest that the policy efforts for more inclusive insurance markets would generate improved outcomes for consumers, insurers, and regulators.

Item Type:	Article
Uncontrolled Keywords:	insurance, financial inclusion, market concentration, underwriting performance
Subjects:	Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions:	Faculty of Tourism and Hospitality
Depositing User:	Prof. d-r Bojan Srbinoski
Date Deposited:	07 Apr 2025 09:35
Last Modified:	07 Apr 2025 09:35
URI:	https://eprints.uklo.edu.mk/id/eprint/10870

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