CONCENTRATION OF NON-LIFE INSURANCE MARKET OF UKRAINE (2019)

Different economy sectors are defined by different degrees of market concentration in the influence field of an individual or several economic entities. In order to resolve conflicting economic relations that arise in imperfect competition, it is accepted to use a number of market concentration indicators and market concentration classification types. The article calculates two indicators of concentration for Ukraine's non-life insurance market for ten and twenty largest non-life insurance companies, namely CR10 and CR20 concentration indexes and Herfindahl–Hirschman Indexes HHI10 and HHI20, the concentration level of this insurance market and dynamics of market concentration were researched, a weak point in the existing classification of markets was identified and improvement of this classification by the criterion of their concentration was proposed, supplementing the range of markets with a moderate degree of concentration and arguing the main indicator of concentration of the two present in the classification. After processing statistical data, the results were obtained, which can be interpreted contradictory, since different indicators of the concentration of the insurance market showed affiliation to different types of market. Whereas the digital limits of different ranges were not revised. The approach for developing concentration indicators was justified and removal of such indicators usage, that contradict the approach known as «Occam's razor», was proposed. The method by which it is expedient to choose the main indicator in the classification of market concentration in the future was justified. Indicated, that with the increase of the market monopolization, the most influential economic entities are increasingly abusing trust in general and economic trust in particular from counterparties. Trust, or distrust, affects very different areas of the human psyche that is why a decline in trust will have negative consequences in economic, social and psychological spheres of human and social life, which in the distant future will restrain positive changes in the market. The results of the article are based on an actual data of insurance companies, insurance markets and research done by other scientists.