Competition reduces profitability: the case of the Indian life microinsurance industry

Abstract We aim to understand the effect of market and firm-level concentration on return equity in Indian life microinsurance industry (LMI). This research is one first attempts empirically test structure–performance issues India. Using data 14 companies that remained active LMI during 2009–2019, we demonstrate firms scored better profitability measures whenever competitive pressures were lower. calculate Herfindahl–Hirschman indexes (HHI), share entropy use panel techniques find a positive negative share. conclude LMI-specialised insurers India perform than diversified insurers.