Assessing the impact of the russian invasion on the competitiveness in the Ukrainian insurance market

Abstract

The full-scale russian invasion and war in Ukraine have inflicted substantial damage on the Ukrainian economy across various sectors. During crises, a common phenomenon is a decline in market competitiveness. This paper seeks to investigate whether the war in Ukraine has resulted in a reduction of competitiveness in the Ukrainian insurance market. To assess this, a range of traditional measures of market concentration, as well as various statistical tests, were applied to three crucial indicators from the Ukrainian insurance market, namely, assets, insurance premiums, and insurance payments for the period from January 1, 2022 to July 1, 2023. The findings suggest that, despite substantial losses incurred by the Ukrainian insurance market due to the invasion, the competition in the market did not experience significant degradation. However, the existing trends indicating a propensity for increased market concentration are cause for concern and demand immediate attention from regulators to prevent the deterioration of the market. To prevent market degradation stemming from current trends, regulatory bodies like the National Bank of Ukraine should carefully monitor adverse developments. They ought to integrate commitments to ensure market competitiveness, complemented by specific quantitative metrics for oversight, into their strategic plans and concepts for the development of the insurance market. Given the persistent threat of russian bombing in Ukraine, a viable and promising direction involves the proactive adoption of digital services and products. AcknowledgmentsAlex Plastun gratefully acknowledges financial support from the Ministry of Education and Science of Ukraine (0121U100473).

The Impact of War on the Insurance Market of Ukraine: Analysis of Obstacles and Restructuring of the Financial Landscape

“…Воєнний вплив на страховий ринок України входить до числа найбільш гострих питань в умовах сьогодення. На національному рівні проблемам адаптації страхових компаній до непередбачуваних подій та шляхам їх вирішення присвячували свої праці А. Пластун, С. Лайчук, Л. Руденко, Т. Гузенко, Ю. Машина [1], Д.Тарасенко, О.Тарасенко, С. Мироненко [16], Тарасюк Г. М., Поліщук Д. І., Н. М. Внукова, В. І. Успаленко, Л. В. Временко, Пікус Р. В., Вітлінський В., Ю. Русіна, Калугарь А.В., Кучерівська С.С. [19], Р.Г.…”

Insurance market transparency research trends: Bibliometric analysis

“…Today, as the complexity and scale of insurance markets have sharply increased (Plastun et al, 2023; Babenko-Levada, 2021), transparency has become a key element of fair and efficient market operations (Mursalov et al, 2023;Kolomiiets et al, 2023;Bozhenko et al, 2023;Didenko et al, 2023;Vasilyeva et al, 2022). The insurance market is inherently characterized by asymmetric information (Wein, 1998) and complex financial products, making transparency not just a regulatory requirement but a fundamental necessity for consumer protection and market stability (Lyeonov et al, 2021;Bhandari, 2023;Njegovanović, 2023).…”