Assessing the level of competitiveness of the insurance sector during economic crises: The example of Ukraine

  • Received October 5, 2021;
    Accepted December 23, 2021;
    Published December 28, 2021
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/ins.12(1).2021.07
  • Article Info
    Volume 12 2021, Issue #1, pp. 72-82
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This work is licensed under a Creative Commons Attribution 4.0 International License

In the context of the crisis in Ukraine, it is important to increase the competitiveness of the insurance sector as a measure of its stability and dynamism under various scenarios of economic development. The purpose of this paper is to assess the competitiveness of the insurance sector and determine the impact on its level of factors caused by economic crises. Using the method of integrated analysis, the index of competitiveness of the insurance industry is built, which considers the number of businesses, employment, sales, capital investment in the industry, insurance sector performance, share of profitable enterprises, and profitability of the insurance sector in Ukraine for 2012–2020. The results showed that the impact of the 2014–2015 crisis due to endogenous factors, namely political instability in the country and the devaluation of the hryvnia, led to a significant reduction in the competitiveness index of the insurance sector. At the same time, during the pandemic, the insurance sector is stabilized, as evidenced by the growth of sales and the share of profitable enterprises, as well as increasing profitability of insurance activities. The competitiveness index did not change significantly during the pandemic. To analyze the dependence of the integrated indicator of the competitiveness of the insurance sector on economic fluctuations during the crisis, regression equations are constructed. It is proved that the greatest impact on the competitiveness index of the insurance sector in times of crisis is exerted by changes in employment and the amount of capital investment.

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    • Figure 1. Dynamics of the competitiveness level of insurance in Ukraine in crisis
    • Figure 2. Correlation of the main economic crises indicators and the competitiveness index of insurance activities
    • Table 1. Chaddock’s scale
    • Table 2. Main indicators of the competitiveness of the insurance sector in Ukraine
    • Table 3. Integral index and factors of competitiveness of the insurance sector in Ukraine
    • Table 4. Influence of economic factors on the competitiveness of the insurance sector
    • Conceptualization
      Iryna Tsymbaliuk
    • Investigation
      Iryna Tsymbaliuk, Nataliia Pavlikha, Olena Zelinska, Alisa Ventsuryk, Anna Radko
    • Methodology
      Iryna Tsymbaliuk, Nataliia Pavlikha
    • Project administration
      Iryna Tsymbaliuk, Nataliia Pavlikha
    • Supervision
      Iryna Tsymbaliuk
    • Validation
      Iryna Tsymbaliuk, Nataliia Pavlikha, Olena Zelinska, Alisa Ventsuryk, Anna Radko
    • Writing – original draft
      Iryna Tsymbaliuk, Nataliia Pavlikha, Alisa Ventsuryk, Anna Radko
    • Writing – review & editing
      Nataliia Pavlikha
    • Data curation
      Olena Zelinska
    • Formal Analysis
      Olena Zelinska, Alisa Ventsuryk, Anna Radko
    • Visualization
      Olena Zelinska, Alisa Ventsuryk, Anna Radko