CONCENTRATION LEVEL IN THE INSURANCE INDUSTRY IN THE REPUBLIC OF SERBIA – LORENZ CURVE AND GINI COEFFICIENT
CONCENTRATION LEVEL IN THE INSURANCE INDUSTRY IN THE REPUBLIC OF SERBIA – LORENZ CURVE AND GINI COEFFICIENT

Summary/Abstract: The degree of concentration and market inequality are important structural variables in the financial sector. Various levels of concentration of individual companies in economic branches are the first indicator of potential distortion of market structure and competitiveness. In the paper, the authors present the results of a comparative empirical analysis of the level of concentration in the insurance sector in the Republic of Serbia in two periods: after the economic crisis (2010–2012) and the post-Covid crisis (2020–2022). In order to provide a more realistic representation of the degree of concentration in the insurance industry in the Republic of Serbia, the authors chose a simultaneous analysis of the Lorenz curve and the Gini coefficient. Recent research shows that the Lorenz curve and the Gini coefficient are unjustifiably neglected indicators of market concentration, and that several authors use them as a mechanism for determining market concentration in the insurance sector. In this context, the contribution of this paper is reflected, on the one hand, in the comparative analysis of the level of concentration in the domestic insurance market for the two mentioned periods, as well as in the authors’ attempt to use this research to reduce the lack of domestic literature dealing with this topic

• Details
• Contents