COMPETITION IN THE NON-LIFE INSURANCE INDUSTRY

Abstract

From 2000 to 2008, the Zimbabwean economy experienced a severe economic crisis. There has been a significant rebound of the financial system following the crisis, with several initiatives being pursued. In light of these post-economic-crisis developments, this study examines the evolution of competition and market structure in the non-life insurance market in Zimbabwe from 2010 to 2022. The study uses the Panzar and Rosse methods and the long-run regression model to measure competition. The research demonstrated that insurance companies operate in long-term equilibrium. The research also revealed that insurance companies operate under monopolistic competition. This is demonstrated by the differentiated products sold by non-life insurance companies. This indicates that insurance companies can generate more revenue due to the uniqueness of their characteristics, such as their trademarks, image, and advertising. Policymakers should continue monitoring sector developments to increase competition in the sector.