Market Structure Of Life Insurance Essay
Definition
Market Structure is the interconnected characteristics of a market, such as the number and relative strength of buyers and sellers and degree of collusion among them, level and forms of competition, extent of product differentiation, and ease of entry into and exit from the market .
Market Structure
According to (Baye, 1958) each industry are structured differently. Managers of these industries are faced with the challenging tasks of making sensible or wise decisions. These decisions are affected or are based on how the industry is structured. There are four basic types of market structure:
• Perfect Competition – Also known as Pure Market or Pure Competition. Theoretically in the free-market situation certain conditions are met. These conditions are that buyers and sellers are too numerous to have individual control over prices. Buyers and sellers seek to maximize their prices. They have free entrance and exit of the market. There is access to information regarding availability, prices and quality of goods and lastly
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Of these companies 10 of them covers Life Insurance whilst only 7 of these companies covers General Insurance, which ranges from (Property, Public Liability, Aviation, Marine, Credit Life, Contractor all Risk, Individual Life and Motor Insurances). However our study is focusing on Motor Insurance namely the “3rd Party Act” which falls under the category of General Insurance.
Industry Concentration/Size of firms Atlantic Insurance Company has a total of 14 branch offices countrywide and a total of 70 employees trained to facilitate their customer’s needs. It was audited in 2016 that Atlantic Insurance Company accumulated a total of 7.6 million dollars in sales from Motor Insurance. Also in 2016 the market share for motor insurance is as follows :
• RF& G - 34.41%
• Atlantic Insurance - 25.72%
• Insurance Corporation of Belize -
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