STATE OF CONCENTRATION AND MONOPOLIZATION OF THE INSURANCE MARKET OF UKRAINE

Abstract

The intensity and quality of insurance market development are directly related to the level of competition, concentration
and monopolization between insurance companies. Although the insurance market of Ukraine is insignificant in terms of key
indicators in comparison with foreign ones, the competitiveness of its insurers is very important to ensure proper insurance
protection of policyholders. The article is devoted to the assessment of the processes of concentration and monopolization
of the insurance market of Ukraine. The study analyzed the structure of the insurance market by segments, concentration
indicators and the Herfindahl-Hirschman index for the market as a whole and for individual types of insurance, gradation
of insurance companies by the amount of collected insurance premiums. Based on the assessment, it was determined that
the insurance market of Ukraine is generally low concentrated, as well as the sector of risky types of insurance. Among the
selected segments of the insurance market, the most concentrated is the CASCO insurance. In the field of health insurance
there is a slightly lower level of concentration and monopolization as in the OTSPVVNTZ segment. The market of classical
property insurance is the least concentrated. The life insurance segment is characterized by moderate concentration and
monopolization. The most powerful insurance companies in the relevant sectors of the insurance market of Ukraine are
outlined. Since 2015, the top three leaders of the life insurance market are PJSC “MetLife”, PJSC “Insurance Group TAS”
and PJSC “IC UNIСA LIFE”. Virtually unchanged leaders in the field of risk insurance during 2018-2020 were PJSC “IC ARX”, PJSC “IC UNICA” and PJSC “Insurance Group TAS”, which are members of financial groups that include leaders of
the life insurance market. In general, the national insurance market is becoming more concentrated, which will be appropriate
and accepted benefits while strong market players will not involve their residents, and the state controls these processes.