Uman National University | today: 06/19/2025
| Author(s) |
Bechko P.K., Candidate of Economics, , Uman National University of Horticulture, Ukraine Nepochatenko E.A., Candidate of Economics Sciences, , Uman National University of Horticulture, Ukraine Пономаренко О. В., , , |
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| Category | Economics | ||
| year | 2025 | issue | Випуск 106 Частина 2 |
| pages | 157-168 | index UDK | 368.012:339.137.2 | DOI | 10.32782/2415-8240-2025-106-2-157-168 (Link) |
| Abstract | The article explores the phenomenon of competition in the insurance market through the prism of various theoretical approaches to the essence of insurance. The study is grounded in the premise that insurance is a complex and multifaceted institution whose economic, legal, and social interpretations influence the mechanisms and forms of competitive behavior among market participants. The research systematizes the main scientific approaches to defining the nature of insurance—as a means of risk management, financial protection, economic redistribution, and institutional arrangement—and demonstrates how each of them shapes the typology and structure of competition. The research emphasizes that, unlike general economic markets, competition in insurance is predominantly processual in nature and is primarily manifested as a struggle for policyholders rather than as a static market condition. The authors differentiate between two major forms of competition in insurance: intra-industry (market-based) and inter-industry (cross-sectoral). Particular attention is paid to inter-market competition, which arises either as an alternative choice between different risk management tools or due to the substitution effect among financial services with similar consumer characteristics. The paper also identifies price and non-price mechanisms of competition and assesses their prevalence depending on the theoretical model underlying insurance activities. It is concluded that inter-market competition, unlike market-based competition, may have both positive and negative implications for the development of the insurance sector. The negative effects, especially in terms of regulatory asymmetries and consumer misperception, highlight the need to adapt strategic and policy responses within insurance markets. The findings contribute to the conceptual refinement of competition in the context of institutional evolution and offer a basis for further research on competition policy and market architecture in insurance. | ||
| Key words | insurance; competition; insurance market; economic essence of insurance; institutional approach; inter-market competition; insurance functions; competitive environment; theoretical concepts; financial stability | ||