• English (United Kingdom)
  • Russian (CIS)
Development Problems and Prospects of Insurance Relations in Conditions of Increasing Market Concentration

Author: Yelena M. Khitrova, Сand. Sc (Ec.), Associate-Prof. of Insurance & Risk Management Dept.

Abstract: The article looks at the modern trends in the insurance market, first and foremost, its high concentration that has both a positive and a negative impact on its development. The paper identifies the factors contributing to the growth of the Russian market concentration; carries out numerical analysis of this phenomenon using the main indicators of the market; gives the comparison with the markets of developed countries according to the concentration indicators. The paper concludes that the reasons behind high concentration may have various effects on the development of the insurance sector and its role in the economy of a country. Particular attention is paid to the influence of market concentration on pricing of insurance products. It is shown that, along with the major insurers in the market there may be small companies, representing the regions and having a better understanding of the insurance problems locally. The possibilities of the state to regulate the tariff policy of insurance companies in conditions of a high concentration of the market are considered.

Key words: concentration of the insurance market; causes and factors of concentration; demand for insurance services; pricing of insurance services; state regulation of concentration processes; interests of the participants of insurance market.