Insurance intermediaries and bad faith in insurance: The case of the non-life insurance market in North Macedonia

Srbinoski, Bojan and Arrawatia, Rakesh and Kuryłowicz, Łukasz (2025) Insurance intermediaries and bad faith in insurance: The case of the non-life insurance market in North Macedonia. In: EERIA Fourth Annual Conference, 25-27 September 2025, Sarajevo. (Unpublished)

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Abstract

This study aims to examine the effect of different distribution channels on the incidence of bad-faith disputes in the non-life insurance market in North Macedonia. Utilizing firm-level data for the period 2013–2022, the study explores how variations in distribution strategies, particularly the reliance on intermediaries such as agents, bancassurance and brokers, influence insurers' claim settlement behavior and the likelihood of disputes indicative of bad faith. The Macedonian non-life insurance market presents a particularly relevant context for this analysis. First, it is characterized by a relatively competitive structure with limited market entry and exit dynamics, distinguishing it from many other developing markets. Second, the low level of insurance culture restricts underwriting predominantly to mandatory or semi-mandatory lines, especially motor third-party liability (MTPL) insurance, which accounts for the dominant share of the market portfolio. Given that MTPL tariffs are regulated and remained largely unchanged during the observed period, insurers face profitability constraints amidst rising operational costs and intensifying competition (Srbinoski et al., 2025). These conditions have incentivized firms to diversify and intensify their distribution efforts through various channels, making the role of intermediaries a critical factor in shaping insurer conduct and trust-related outcomes.

Item Type:	Conference or Workshop Item (Paper)
Subjects:	Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions:	Faculty of Tourism and Hospitality
Depositing User:	Prof. d-r Bojan Srbinoski
Date Deposited:	03 Oct 2025 09:31
Last Modified:	03 Oct 2025 09:31
URI:	https://eprints.uklo.edu.mk/id/eprint/11118

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