A NEW METHOD FOR DETERMINING THE COMPETITIVE POSITION OF A LIFE INSURANCE COMPANY IN THE INSURANCE SERVICES MARKET

Abstract

The competition among service providers in the life insurance market is defined by market positioning and the relative standing of insurance companies. In Ukraine, the «Law on the Protection of Economic Competition» sets forth rules that dictate the behavior of market participants, evaluating market share with a primary focus on a singular indicator and criterion for monopolization. This highlights the urgent need for a methodology to assess the competitive positions of life insurers that facilitates a comprehensive comparison of their market coverage and performance.
The aim of this study is to develop and validate a novel methodology for evaluating the competitive position of life insurers in the market. This methodology will integrate various indicators, including market coverage, territorial expansion, scope of activity, and performance criteria, to offer a thorough assessment of an insurer’s competitive standing.
A new approach for assessing the competitive positions of life insurers has been formulated, relying on five key indicators of market coverage. It introduces an aggregated indicator of a life insurer’s market position, enabling effective comparisons and rankings among insurers. Factors such as high premiums, a substantial number of life contracts, profitability, and administrative costs are identified as determinants of a strong competitive position in the market. This innovative methodology was applied to a sample of life insurers in the Ukrainian market, demonstrating its practical utility and effectiveness.