Assessing the impact of the russian invasion on the competitiveness in the Ukrainian insurance market

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The full-scale russian invasion and war in Ukraine have inflicted substantial damage on the Ukrainian economy across various sectors. During crises, a common phenomenon is a decline in market competitiveness. This paper seeks to investigate whether the war in Ukraine has resulted in a reduction of competitiveness in the Ukrainian insurance market. To assess this, a range of traditional measures of market concentration, as well as various statistical tests, were applied to three crucial indicators from the Ukrainian insurance market, namely, assets, insurance premiums, and insurance payments for the period from January 1, 2022 to July 1, 2023. The findings suggest that, despite substantial losses incurred by the Ukrainian insurance market due to the invasion, the competition in the market did not experience significant degradation. However, the existing trends indicating a propensity for increased market concentration are cause for concern and demand immediate attention from regulators to prevent the deterioration of the market. To prevent market degradation stemming from current trends, regulatory bodies like the National Bank of Ukraine should carefully monitor adverse developments. They ought to integrate commitments to ensure market competitiveness, complemented by specific quantitative metrics for oversight, into their strategic plans and concepts for the development of the insurance market. Given the persistent threat of russian bombing in Ukraine, a viable and promising direction involves the proactive adoption of digital services and products.

Acknowledgments
Alex Plastun gratefully acknowledges financial support from the Ministry of Education and Science of Ukraine (0121U100473).

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    • Figure 1. Dynamics of key indicators of the Ukrainian insurance market over the period January 1, 2022 – July 1, 2023
    • Figure 2. Lorenz curve for the case of assets in the Ukrainian insurance market: pre- and post-invasion data
    • Figure 3. Lorenz curve for the case of Net earned insurance premiums in the Ukrainian insurance market: pre- and post-invasion data
    • Figure 4. Lorenz curve for the case of insurance payments in the Ukrainian insurance market: pre- and post-invasion data
    • Table 1. Key indicators of the Ukrainian insurance market over the period January 1, 2022 – July 1, 2023
    • Table 2. Descriptive statistics for key indicators of the Ukrainian insurance market: the case of pre- and post-invasion data
    • Table 3. ANOVA analysis results: the case of pre- and post-invasion data
    • Table 4. Mann-Whitney tests: the case of pre- and post-invasion data
    • Table 5. Indicators of Ukrainian insurance market concentration for the case of Assets, 2022–2023
    • Table 6. General results of competitiveness analysis in the Ukrainian insurance market for the case of “Assets”
    • Table 7. Indicators of market concentration for the case of Net earned insurance premiums, 2022–2023
    • Table 8. General results of competitiveness analysis in the Ukrainian insurance market for the case of “Insurance premiums”
    • Table 9. Indicators of market concentration for the case of Insurance payments, 2022–2023
    • Table 10. General results of competitiveness analysis in the Ukrainian insurance market for the case of “Insurance payments”
    • Table A1. Indicators to assess competitiveness
    • Conceptualization
      Alex Plastun
    • Project administration
      Alex Plastun
    • Supervision
      Alex Plastun
    • Writing – original draft
      Alex Plastun, Svitlana Laichuk, Liudmyla Rudenko, Tetiana Guzenko
    • Funding acquisition
      Svitlana Laichuk, Liudmyla Rudenko, Yuliia Mashyna
    • Resources
      Svitlana Laichuk, Yuliia Mashyna
    • Visualization
      Svitlana Laichuk
    • Data curation
      Liudmyla Rudenko
    • Formal Analysis
      Liudmyla Rudenko
    • Investigation
      Tetiana Guzenko
    • Methodology
      Tetiana Guzenko, Yuliia Mashyna
    • Validation
      Tetiana Guzenko
    • Writing – review & editing
      Yuliia Mashyna