Financial inclusion, market concentration and underwriting performance: Empirical evidence from Central Eastern and Southeastern European countries

Synergies or trade-offs may arise between financial inclusion and financial stability, depending on the type of financial market and the level of market competition. We focus on the less inclusive and less competitive Central Eastern and Southeastern European non-life insurance markets and examine t...

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Main Authors: Srbinoski Bojan, Kjosevski Jordan, Poposki Klime, Mecheski Stevcho
Format: Article
Language:English
Published: Sciendo 2025-04-01
Series:Economics and Business Review
Subjects:
Online Access:https://doi.org/10.18559/ebr.2025.1.1850
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author Srbinoski Bojan
Kjosevski Jordan
Poposki Klime
Mecheski Stevcho
author_facet Srbinoski Bojan
Kjosevski Jordan
Poposki Klime
Mecheski Stevcho
author_sort Srbinoski Bojan
collection DOAJ
description Synergies or trade-offs may arise between financial inclusion and financial stability, depending on the type of financial market and the level of market competition. We focus on the less inclusive and less competitive Central Eastern and Southeastern European non-life insurance markets and examine the link between financial inclusion and insurers’ underwriting performance and whether the insurance market concentration affects the inclusion-performance nexus. We use two measures of financial inclusion in insurance, one measuring the availability of insurers and the other measuring the aggregate insurance premium volumes. The results suggest that the impact of inclusion on underwriting performance is conditional on how inclusion is measured and on the prevailing market structure. These findings highlight the need for further research but also suggest that policy efforts aimed at fostering more inclusive insurance markets should consider the structural characteristics of insurance markets to ensure effective outcomes for consumers, insurers, and regulators.
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series Economics and Business Review
spelling doaj-art-46fe2853bf0a4ff08f2988b4899112e62025-08-20T03:06:35ZengSciendoEconomics and Business Review2450-00972025-04-0111113315610.18559/ebr.2025.1.1850Financial inclusion, market concentration and underwriting performance: Empirical evidence from Central Eastern and Southeastern European countriesSrbinoski Bojan0Kjosevski Jordan1Poposki Klime2Mecheski Stevcho31University St. Kliment Ohridski, Bitola, Kej Makedonija 95, 6000, Ohrid, North Macedonia2Ohrid, North Macedonia3University St. Kliment Ohridski, Bitola, Kej Makedonija 95, 6000, Ohrid, North Macedonia4University St. Kliment Ohridski, Bitola, Kej Makedonija 95, 6000, Ohrid, North MacedoniaSynergies or trade-offs may arise between financial inclusion and financial stability, depending on the type of financial market and the level of market competition. We focus on the less inclusive and less competitive Central Eastern and Southeastern European non-life insurance markets and examine the link between financial inclusion and insurers’ underwriting performance and whether the insurance market concentration affects the inclusion-performance nexus. We use two measures of financial inclusion in insurance, one measuring the availability of insurers and the other measuring the aggregate insurance premium volumes. The results suggest that the impact of inclusion on underwriting performance is conditional on how inclusion is measured and on the prevailing market structure. These findings highlight the need for further research but also suggest that policy efforts aimed at fostering more inclusive insurance markets should consider the structural characteristics of insurance markets to ensure effective outcomes for consumers, insurers, and regulators.https://doi.org/10.18559/ebr.2025.1.1850insurancefinancial inclusionmarket concentrationunderwriting performanceg22i31l10o52
spellingShingle Srbinoski Bojan
Kjosevski Jordan
Poposki Klime
Mecheski Stevcho
Financial inclusion, market concentration and underwriting performance: Empirical evidence from Central Eastern and Southeastern European countries
Economics and Business Review
insurance
financial inclusion
market concentration
underwriting performance
g22
i31
l10
o52
title Financial inclusion, market concentration and underwriting performance: Empirical evidence from Central Eastern and Southeastern European countries
title_full Financial inclusion, market concentration and underwriting performance: Empirical evidence from Central Eastern and Southeastern European countries
title_fullStr Financial inclusion, market concentration and underwriting performance: Empirical evidence from Central Eastern and Southeastern European countries
title_full_unstemmed Financial inclusion, market concentration and underwriting performance: Empirical evidence from Central Eastern and Southeastern European countries
title_short Financial inclusion, market concentration and underwriting performance: Empirical evidence from Central Eastern and Southeastern European countries
title_sort financial inclusion market concentration and underwriting performance empirical evidence from central eastern and southeastern european countries
topic insurance
financial inclusion
market concentration
underwriting performance
g22
i31
l10
o52
url https://doi.org/10.18559/ebr.2025.1.1850
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AT poposkiklime financialinclusionmarketconcentrationandunderwritingperformanceempiricalevidencefromcentraleasternandsoutheasterneuropeancountries
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