MARKET STRUCTURE, BROKERS, AND INSURER PERFORMANCE: EVIDENCE FROM THE NON-LIFE INSURANCE MARKET IN NORTH MACEDONIA

Srbinoski, Bojan and Poposki, Klime and Born, Patricia and Kraft, Mirko (2025) MARKET STRUCTURE, BROKERS, AND INSURER PERFORMANCE: EVIDENCE FROM THE NON-LIFE INSURANCE MARKET IN NORTH MACEDONIA. Ekonomska misao i praksa.

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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.

Item Type:	Article
Subjects:	Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions:	Faculty of Tourism and Hospitality
Depositing User:	Prof. d-r Bojan Srbinoski
Date Deposited:	13 Nov 2025 08:38
Last Modified:	13 Nov 2025 08:38
URI:	https://eprints.uklo.edu.mk/id/eprint/11173

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