IDEAS home Printed from https://ideas.repec.org/a/eip/journl/y2018i2p76-90.html
   My bibliography  Save this article

Penetration of insurers with foreign capital in the insurance market of Ukraine

Author

Listed:
  • L. Shirinyan
  • A. Shirinyan

Abstract

The purpose of the article is to investigate the degree of penetration of insurance companies with foreign capital (IFC) into the insurance market of Ukraine and to identify trends in the openness indexes of the Ukrainian insurance market in modern conditions. The main argument for the presence of foreign capital is the improvement of the quality of service provision and the impact on GDP change rate. On the other hand, the question correlates with the problem of financial security of the market. The paper deals with the IFCs activities of in 2007-2017 and uses the author's methodology of the complex estimation of market openness based on the coefficients of market openness by the number of IFCs, by the foreign capital, by assets, by the volume of insurance services, by reinsurance operations, by import and export of services; and by the coefficients of concentration and insurance penetration. It is revealed that most IFCs have foreign capital from Cyprus, Austria, the United Kingdom, the Netherlands and they are the leaders in terms of insurance premiums and insurance payments. Data show that the value of gross premiums, volumes of export and import of insurance services, given in US dollars, have been significantly decreasing. It is shown that the numbers of Ukrainian insurance companies and IFCs after 2008 decreased each year. It is estimated that the insurance market after 2014 became open and strongly dependent and in terms of import and export - closed and autonomous. It is obtained that by the number of IFCs, by the share of foreign capital and in terms of reinsurance, Ukraine's insurance market is optimally open when national benefits are secured. A detailed analysis showed that the concentration for the first three IFCs is about 9.22%, which indicates an absence of monopolization by the IFCs, although in recent years the concentration tends to increase. The value of insurance penetration for the IFCs is low, nearly 0.56%, which indicates the actual absence of the influence of the IFCs activities on GDP formation.

Suggested Citation

  • L. Shirinyan & A. Shirinyan, 2018. "Penetration of insurers with foreign capital in the insurance market of Ukraine," Economy and Forecasting, Valeriy Heyets, issue 2, pages 76-90.
    • Handle: RePEc:eip:journl:y:2018:i:2:p:76-90
    as

    Download full text from publisher

    File URL: http://eip.org.ua/docs/EP_18_2_76_uk.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Philip Hardwick & Wen Dou, 1998. "The Competitiveness of EU Insurance Industries," The Service Industries Journal, Taylor & Francis Journals, vol. 18(1), pages 39-53, January.
    2. Yu‐Luen Ma & Nat Pope, 2003. "Determinants of International Insurers’ Participation in Foreign Non‐Life Markets," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 70(2), pages 235-248, June.
    3. J. David Cummins & Bertrand Venard, 2008. "Insurance Market Dynamics: Between Global Developments and Local Contingencies," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 11(2), pages 295-326, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. J. François Outreville, 2013. "The Relationship Between Insurance and Economic Development: 85 Empirical Papers for a Review of the Literature," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 16(1), pages 71-122, March.
    2. De Rosa, Clemente & Luciano, Elisa & Regis, Luca, 2021. "Geographical Diversification And Longevity Risk Mitigation In Annuity Portfolios," ASTIN Bulletin, Cambridge University Press, vol. 51(2), pages 375-410, May.
    3. J. François Outreville, 2021. "Insurance and foreign direct investment: a review (or lack) of evidence," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 46(2), pages 236-247, April.
    4. Focarelli, Dario & Pozzolo, Alberto Franco, 2008. "Cross-border M&As in the financial sector: Is banking different from insurance," Journal of Banking & Finance, Elsevier, vol. 32(1), pages 15-29, January.
    5. Yu‐Luen Ma & Nat Pope, 2008. "Foreign Share, Insurance Density, and Penetration: An Analysis of the International Life Insurance Market," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 11(2), pages 327-347, September.
    6. Stephanie Hussels & Damian Ward & Ralf Zurbruegg, 2005. "Stimulating the Demand for Insurance," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 8(2), pages 257-278, September.
    7. Fuentes-Castro, Hugo Javier. & Reyna-Bernal, Ana María., 2014. "Comparando con las grandes. Retos para las aseguradoras en reducción de costos," Panorama Económico, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 0(19), pages 7-32, segundo s.
    8. Godwin Olasehinde-Williams & Mehmet Balcilar, 2018. "Examining the Causal Relationship between Globalization and Insurance Activities in Large Emerging Market (LEM) Economies: Evidence from Bootstrap Panel Granger Causality," Working Papers 15-40, Eastern Mediterranean University, Department of Economics.
    9. Ming-Sun Horng & Yung-Wang Chang & Ting-Yi Wu, 2012. "Does insurance demand or financial development promote economic growth? Evidence from Taiwan," Applied Economics Letters, Taylor & Francis Journals, vol. 19(2), pages 105-111, February.
    10. Allan Webster & Philip Hardwick, 2005. "International trade in financial services," The Service Industries Journal, Taylor & Francis Journals, vol. 25(6), pages 721-746, September.
    11. Ana María Reyna & Hugo J. Fuentes, 2018. "A cost efficiency analysis of the insurance industry in Mexico," Journal of Productivity Analysis, Springer, vol. 49(1), pages 49-64, February.
    12. Lee, Chien-Chiang & Chiu, Yi-Bin, 2016. "Globalization and insurance activity: Evidence on the industrial and emerging countries," The North American Journal of Economics and Finance, Elsevier, vol. 36(C), pages 328-349.
    13. Hui Shan Lee & Shyue Chuan Chong & Shen Yap & Bik Kai Sia & Ying Xi Chen, 2021. "Does Economic Freedom in Host Countries Lead to Increased Non-Life Insurance Development?," SAGE Open, , vol. 11(4), pages 21582440211, October.
    14. Boris Marović & Vladimir Njegomir & Dragan Marković, 2013. "Competition In Insurance Markets Of The Region Of Former Yugoslavia," Serbian Association of Economists Journal, SAE - Serbian Association of Economists, issue 5-6, pages 354-363, August.
    15. Lee, Chien-Chiang & Chang, Chi-Hung, 2015. "Financial policy and insurance development: Do financial reforms matter and how?," International Review of Economics & Finance, Elsevier, vol. 38(C), pages 258-278.
    16. J. François Outreville, 2011. "The relationship between insurance growth and economic development - 80 empirical papers for a review of the literature," ICER Working Papers 12-2011, ICER - International Centre for Economic Research.
    17. Nicola Ranger & Swenja Surminski, 2011. "A preliminary assessment of the impact of climate change on non-life insurance demand in the BRICS economies," GRI Working Papers 63, Grantham Research Institute on Climate Change and the Environment.
    18. Oswaldo Lorenzo & Paul Esqueda & Janelle Larson, 2010. "Safety and Ethics in the Global Workplace: Asymmetries in Culture and Infrastructure," Journal of Business Ethics, Springer, vol. 92(1), pages 87-106, March.
    19. Oetzel, Jennifer M. & Banerjee, Sudeshna Ghosh, 2008. "A case of the tortoise versus the hare? Deregulation process, timing, and firm performance in emerging markets," International Business Review, Elsevier, vol. 17(1), pages 54-77, February.
    20. Lee, Chien-Chiang & Lin, Chun-Wei, 2016. "Globalization, political institutions, financial liberalization, and performance of the insurance industry," The North American Journal of Economics and Finance, Elsevier, vol. 36(C), pages 244-266.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eip:journl:y:2018:i:2:p:76-90. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iryna Bazhal (email available below). General contact details of provider: http://eip.org.ua/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.