Assessing the level of competitiveness of the insurance sector during economic crises: The example of Ukraine
-
DOIhttp://dx.doi.org/10.21511/ins.12(1).2021.07
-
Article InfoVolume 12 2021, Issue #1, pp. 72-82
- Cited by
- 441 Views
-
142 Downloads
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.
- Keywords
-
JEL Classification (Paper profile tab)G01, G22
-
References34
-
Tables4
-
Figures2
-
- 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
-
- Ashraf, B., Zheng, C., Jiang, C., & Qian, N. (2020). Capital regulation, deposit insurance and bank risk: International evidence from normal and crisis periods. Research in International Business and Finance, 52, 101188.
- Berzon, S. (2020). Teoretychni zasady formuvannia poniattia “sotsialno-ekonomichna kryza” [Theoretical principles of forming the concept of “socio-economic crisis”]. Nobelivskyi visnyk – Nobel Bulletin, 1, 6-14. (In Ukrainian).
- Boiko, L. (2012). Problemni pytannia rozvytku strakhovoho rynku Ukrainy [Problematic issues of development of the insurance market of Ukraine]. Visnyk Sotsialno-Ekonomichnykh Doslidzhen – Bulletin of Socio-Economic Research, 3(2), 137-143. (In Ukrainian).
- Borysova, T. M. (2011). Konkurentospromozhnist haluzi: determinanty formuvannia ta suchasni metody otsiniuvannia [Competitiveness of the industry: determinants of formation and modern evaluation methods]. Visnyk Khmelnytskoho Natsionalnoho Universytetu – Bulletin of Khmelnytsky National University, 6(1), 56-60. (In Ukrainian).
- Davymuka, S., & Fedulova, L. (2020). Ekonomichna kryza, obumovlena pandemiieiu COVID-19: peredbachennia, prohnozy, zakhody pom’iakshennia [The economic crisis caused by the COVID-19 pandemic: predictions, forecasts, mitigation measures]. Rehionalna Ekonomika – Regional Economy, 4, 93-105. (In Ukrainian).
- Ekonomichna Pravda. (2017). Vtraty ekonomiky vid bankivskoi kryzy v 2014–2016 rr. – 38% VVP [Economic losses from the banking crisis in 2014–2016 – 38% of GDP]. (In Ukrainian).
- Fernández, J., Martínez, J., & Martín, J. (2021). An analysis of the competitiveness of the tourism industry in a context of economic recovery following the COVID19 pandemic. Technological Forecasting and Social Change, 174, 121301.
- Fu, Y., He, W., & Hao, R. (2019). Comparative Analysis of Financial Industry Competitiveness of Regions in China. Journal of Scientific and Industrial Research (JSIR), 78(1), 11-14.
- Kuznichenko, P., Frolov, S., Orlov, V., & Boiko, O. (2021). European Deposit Insurance Scheme implementation: pros and cons. Banks and Bank Systems, 16(1), 116-126.
- Legislation of Ukraine. (2015). Kompleksna prohrama rozvytku finansovoho sektoru Ukrainy do 2020 roku: Postanova Pravlinnia Natsionalnoho banku Ukrainy vid 18.06. 2015. № 391. [Comprehensive program for the development of the financial sector of Ukraine until 2020: Resolution of the Board of the National Bank of Ukraine of 18.06. 2015]. (In Ukrainian).
- Melnyk, A. (2014). The global economic crisis in the Ukrainian economy and their consequences. Hlobalni ta Natsionalni Problemy Ekonomiky – Global and National Economic Problems, 2, 108-113. (In Ukrainian).
- Nalukova, N. (2016). Konkurentsiia yak zaporuka uspishnoho rozvytku strakhovoho rynku. [Competition as a guarantee of successful development of the insurance market]. Svit finansiv – The World of Finance, 3(48), 102-112. (In Ukrainian).
- National Bank of Ukraine. (2020). Bila knyha Maibutnie rehuliuvannia rynku strakhuvannia v Ukraini [White Paper on Insurance Market Regulation Prospects in Ukraine]. (In Ukrainian).
- Orlov, P. A. (2020). Svitova ekonomichna kryza i pandemiia COVID-19 ta yikh uroky dlia uriadu krain [The global economic crisis and the COVID-19 pandemic and their lessons for governments]. Biznes Inform – Business Inform, 6, 30-40. (In Ukrainian).
- Panchuk, D., & Kostetskyi, V. (2018). Problemy mainovoho strakhuvannia v Ukraini [Problems of property insurance in Ukraine]. Aktualni problemy korporatyvnykh finansiv ta finansovykh rynkiv: zbirnyk studentskykh naukovykh prats [Current issues of corporate finance and financial markets: a collection of student research papers] (pp. 100-104). (In Ukrainian).
- Pavlikha, N., & Humeniuk, D. (2010). Problemy ekonomiky Ukrainy v umovakh svitovoi finansovoi kryzy [Problems of Ukraine’s economy in the global financial crisis]. Aktualni problemy finansovoi systemy Ukrainy – Current problems of the financial system of Ukraine: Collection of abstracts, 2, 30-32. Cherkasy: ChSTU. (In Ukrainian).
- Pavlikha, N., & Humeniuk, D. (2010). Vplyv svitovoi finansovoi kryzy na rozvytok ekonomiky Ukrainy [The impact of the global financial crisis on the development of Ukraine’s economy]. Aktualni problemy mizhnarodnykh ekonomichnykh vidnosyn ta turystychnoho biznesu: Materialy VI naukovo-praktychnoi konferentsii molodykh vchenykh – Current issues of international economic relations and tourism business: Proceedings of the VI scientific-practical conference of young scientists. Kharkiv. (In Ukrainian).
- Pavlikha, N., & Ius, I. (2012). Osoblyvosti proiavu svitovoi bankivskoi kryzy ta instrumenty yii zapobihannia [Features of the global banking crisis and tools to prevent it]. Visnyk Lvivskoho universytetu – Bulletin of Lviv University, 31, 309-315. (In Ukrainian).
- Pavlikha, N., Dedeliuk, K., & Shokol, V. (2009). Ekonomisty-mizhnarodnyky pro svitovu finansovu kryzu [International economists on the global financial crisis]. Naukovyi visnyk VNU imeni Lesi Ukrainky. Mizhnarodni vidnosyny – Scientific Bulletin of Lesya Ukrainka University. International relations, 11, 47-50. (In Ukrainian).
- Pavlikha, N., & Kytsiuk, I. (2014). Upravlinnia konkurentospromozhnistiu natsionalnoi ekonomiky: rehionalnyi vymir [Managing the competitiveness of the national economy: a regional dimension]. Vezha-Druk. (In Ukrainian).
- Ponomarova, O., Alieksieieva, L., & Trystan, V. (2017). Konkurentospromozhnist strakhovykh kompanii v suchasnykh umovakh ekonomichnykh peretvoren [Competitiveness of insurance companies in modern conditions of economic transformations]. Ekonomika. Finansy. Pravo – Economy. Finances. Law, 12, 18-21. (In Ukrainian).
- Prokopjeva, E., Tankov, E., Shibaeva, T., & Perekhozheva, E. (2021). Behavioral models in insurance risk management. Investment Management and Financial Innovations, 18(4), 80-94.
- Rekunenko, I., & Vidmenko, Yu. (2019). Rozvytok strakhovoho rynku v umovakh minlyvosti ekonomichnoho seredovyshcha Ukrainy [Development of the insurance market in the conditions of variability of the economic environment of Ukraine]. Infrastruktura rynku – Market infrastructure, 29, 485. (In Ukrainian).
- Ruda, O. (2020). Insurance market development in Ukraine. Efektyvna ekonomika – Effective economics, 2. (In Ukrainian).
- Salameh, H. M. (2021). Failure threats of insurance companies: A case study of financial environments of Jordan. Investment Management and Financial Innovations, 18(3), 113-126.
- Shatailo, O. (2019). Kryzy sotsialno-ekonomichnykh system: proiavy ta oznaky [Crises of socio-economic systems: manifestations and signs]. Visnyk Kyivskoho natsionalnoho torhovelno-ekonomichnoho universytetu – Bulletin of the Kyiv National University of Trade and Economics, 2, 91-102. (In Ukrainian).
- Shevchuk, O., Kondrat, I., & Stanienda, J. (2020). Pandemic as an accelerator of digital transformation in the insurance industry: evidence from Ukraine. Insurance Markets and Companies, 11(1), 30-41.
- Singh, R., & Kumar, R. (2020) A case-based analysis of the competitiveness of the North Indian sugar industry. Global Business and Organizational Exellence, 40(1), 6-18.
- State Statistics Service of Ukraine. (2021). Official site. (In Ukrainian).
- Stojkoski, V., Jolakoski, P., & Ivanovski, I. (2021). The short-run impact of COVID-19 on the activity in the insurance industry in the Republic of North Macedonia. Risk Management and Insurance Review, 24(3), 221-242.
- Tryhuba, A., Pavlikha, N., Rudynets, M., Tryhuba, I., Grabovets, V., Skalyga, M., Tsymbaliuk, I., Khomiuk, N., & Fedorchuk-Moroz, V. (2019). Studying the influence of production conditions on the content of operations in logistic systems of milk collection. Eastern-European Journal of Enterprise Technologies, 3(99), 50-63.
- Vnukova, N., & Mamedova, E. (2020). Teoretychni aspekty vyznachennia sutnosti konkurentospromozhnosti strakhovykh kompanii [Theoretical aspects of determining the essence of the competitiveness of insurance companies]. Efektyvna ekonomika – Efficient economy, 4.
- Volosovych, S., Zelenitsa, I., Kondratenko, D., Szymla, W., & Mamchur, R. (2021). Transformation of insurance technologies in the context of a pandemic. Insurance Markets and Companies, 12(1), 1-13.
- Yakubiv, V., Sodoma, R. Hrytsyna, O. Pavlikha, N. Shmatkovska, T. Tsymbaliuk, I. Marcus, O., & Brodska, I. (2019). Development of electronic banking: a case study of Ukraine. Entrepreneurship and Sustainability, 7(1), 219-232. (In Ukrainian).