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Market Structure, Brokers, And Insurer Performance: Evidence From The Non-Life Insurance Market In North Macedonia

Author

Listed:
  • Bojan Srbinoski

    (University St. Kliment Ohridski Bitola, Bitola, North Macedonia)

  • Klime Poposki

    (University St. Kliment Ohridski Bitola, Bitola, North Macedonia)

  • Patricia Born

    (Florida State University, Tallahassee, Florida, USA)

  • Mirko Kraft

    (Coburg University, Coburg, Germany)

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.

Suggested Citation

  • Bojan Srbinoski & Klime Poposki & Patricia Born & Mirko Kraft, 2025. "Market Structure, Brokers, And Insurer Performance: Evidence From The Non-Life Insurance Market In North Macedonia," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 34(2), pages 395-412, november.
    • Handle: RePEc:avo:emipdu:v:34:y:2025:i:2:p:395-412
    DOI: 10.17818/EMIP/2025/21
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    References listed on IDEAS

    as
    1. Rhoades, Stephen A., 1985. "Market share as a source of market power: Implications and some evidence," Journal of Economics and Business, Elsevier, vol. 37(4), pages 343-363, December.
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    Keywords

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    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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