Bìznes Inform (Dec 2021)
The Theoretical and Methodological Aspects of Assessing the Competitiveness Management of Insurance Companies
Abstract
The article is concerned with consideration of the theoretical and methodological aspects of the management of competitiveness of insurance companies. It is specified that insurance activity belongs to the most profitable and risky types of business. Over the past few years, there has been a tendency to reduce the number of insurance companies in the insurance market, which will strengthen the processes of concentration, monopolization and competition between powerful players in the insurance market. Under such conditions, the issue of determining the level of competitiveness management of insurers, as well as their competitive advantages and factors that form a competitive position in the market, acquires special relevance and urgency. The versatility of the concept and the actualization of the study of the competitiveness of insurance companies in the insurance market of Ukraine, along with the significant achievements of Ukrainian scholars in this area, determine the need to apply a comprehensive methodology for assessing these processes. To analyze the state of competition in a certain segment of the market, it is proposed to focus on the concentration coefficients and on the Herfindahl-Hirschman Index. The next stage of the assessment is the study of the factors of influence and their ranking by the weight of the impact on the final result. A characterization of the quantitative, qualitative, matrix and graphic methods that can be used in the course of assessing the competitive position, competitive advantages and competitiveness of the insurance company are carried out. As the final stage, an analysis of the efficiency of the insurer’s competitiveness management process based on the SIX SIGMA concept is proposed. It is concluded that managing the competitiveness of an insurance company is a complex process that is formed under the influence of a number of changing and dynamic factors and components, and also has immense number of manifestation forms. That is why the assessment of the level of competitiveness management of insurance companies should be based both on the use of existing methodologies and on the introduction of innovative approaches to the analysis of the level of competitive advantages of business entities in the insurance market of Ukraine.
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