Original scientific paper
https://doi.org/10.17818/EMIP/2025/21
MARKET STRUCTURE, BROKERS, AND INSURER PERFORMANCE: EVIDENCE FROM THE NON-LIFE INSURANCE MARKET IN NORTH MACEDONIA
Bojan Srbinoski
orcid.org/0000-0003-4815-3762
; University St. Kliment Ohridski Bitola, Bitola, North Macedonia
*
Klime Poposki
orcid.org/0000-0002-7497-5826
; University St. Kliment Ohridski Bitola, Bitola, North Macedonia
Patricia Born
; Florida State University, Tallahassee, Florida, USA
Mirko Kraft
; Coburg University, Coburg, Germany
* Corresponding author.
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.
Keywords
non-life insurance; market structure; brokerage markets; performance; North Macedonia
Hrčak ID:
339603
URI
Publication date:
25.11.2025.
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