# **Table of Contents**

|**INTRODUCTION AND MOTIVATION................................................................................................... 3**|
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|**OBSERVATIONS ON THE HERFINDAHL INDEX .............................................................................. 5**|
|**OBSERVATIONS ON MARKET SHARE VALUES............................................................................. 16**|
|**OBSERVATIONS ON NUMBERS OF MARKET PARTICIPANTS .................................................. 18**|
|**SUMMARY, CONCLUDING REMARKS AND NEXT STEPS........................................................... 20**|
|**ANNEX: THE HERFINDAHL INDEX ................................................................................................... 23**|
|**ANNEX: REFERENCES........................................................................................................................... 23**|

# **Tables**

|TABLE1: DATASETHERFINDAHLOBSERVATIONS......................................................................................... 5|
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|TABLE2: STATISTICALSUMMARY OFRESULTS OFREGRESSIONLINESCOMPARINGRATIOS OFHERFINDAHL|
|INDICES............................................................................................................................................... 11|
|TABLE3: STATISTICALSUMMARY OFRESULTS OFREGRESSIONLINESCOMPARINGPENETRATION TO<br>HERFINDAHLINDICES.......................................................................................................................... 12|
|TABLE4: STATISTICALSUMMARY OFRESULTS OFREGRESSIONLINESCOMPARINGPREMIUM TO<br>HERFINDAHLINDICES.......................................................................................................................... 13|
|TABLE5: MULTIPLEFACTORREGRESSIONRESULTS.................................................................................... 15|
|TABLE6: REGRESSIONRESULTS ONMARKETSHARES OFLEADINGCOMPANIES.......................................... 18|

# **Figures**

|FIGURE1: DISTRIBUTION OFNUMBER OFOBSERVEDVALUES FOR THEHERFINDAHLINDEX......................... 5|
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|FIGURE2: PROGRESS OFCOUNTRYDATASERIES WHERE LONGER TRENDS ARE AVAILABLE.......................... 6|
|FIGURE3: NONLIFEHERFINDAL VLIFEHERFINDAHL WITH"ZONE OF NATURAL COMPETITION"................... 9|
|FIGURE4: DIAGRAMMATICVIEW- THENATURALLEVEL FOR THEHERFINDAHLINDEX.............................. 10|
|FIGURE5: COMPARING CHANGE INHERFINDAHL TO ABSOLUTE LEVEL......................................................... 11|
|FIGURE6: VARIATION INHERFINDAHLINDEX TOINSURANCEPENETRATION............................................... 12|
|FIGURE7: VARIATION INHERFINDAHLINDEX ANDTOTALPREMIUM........................................................... 13|
|FIGURE8: VARIATION INHERFINDAHLINDEX COMPARED TOMARKETSHARE OF THELARGERCOMPANIES17|
|FIGURE9: VARIATION INCOMPANYNUMBERS COMPARED TOHERFINDAHLINDEX..................................... 19|
|FIGURE10: VARIATION INCOMPANYNUMBERS COMPARED TOTOPCOMPANYSHARE............................... 19|
|FIGURE11: VARIATION INCOMPANYNUMBERS COMPARED TOINSURANCEPENETRATION......................... 20<br>FIGURE12: VARIATION INCOMPANYNUMBERS COMPARED TOMARKETSIZE............................................. 20|

# **Glossary**

Herfindahl Refer Annex: The Herfindahl Index at page 23 Index Life The insurance of mortality and, in some countries, morbidity (disability and disablement) Insurance risks associated with the existence or continuation of human condition. Non Life Insurance other than life insurance, normally against the loss or damage to property or Insurance the arising of liability to others. It is usual that non life insurance is of a shorter term in nature than life insurance events. Insurance The ratio of written premium compared to the gross domestic product of the same Penetration market.

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