MARKET STRUCTURE, BROKERS, AND INSURER PERFORMANCE: EVIDENCE FROM THE NON-LIFE INSURANCE MARKET IN NORTH MACEDONIA

The existing literature on the relationship between insurance market structure and insurer performance neglects the role of intermediaries in affecting insurers' behavior.This article aims to fill this gap by examining the relationship between brokerage market structure and insurer performance in the non-life insurance market in North Macedonia.Using unique data about bilateral premium flows between insurers and brokers for the period 2013 -2022, we construct an insurer-level measure of competition to encapsulate the variation in the competition considering both types of market players, insurers and brokers.We find that collaboration with more competitive brokers distorts insurers' oligopolistic behavior, enforcing a more competitive environment, improving insurers' efficiency and driving down insurance prices.The findings provide policy implications for EKON.MISAO I PRAKSA DBK.GOD xx.(xx.)BR. xx.