Longitudinal Effects of Sectoral Concentration on the Brazilian Insurance Market Performance

ABSTRACT Objective: to evaluate the concentration in different Brazilian insurance lines of business (LOB) and analyze effects on premium revenues profitability. There is evidence that market holds main characteristics an oligopoly. Theoretical approach: it based Industrial Organization, a field Economics dedicated studying structure, importance, arrangement firms, addition impacts derived from competition. Method: regression models for panel data are used. The official market, arranged monthly between Feb./2003 Dec./2018, totaling 82,443 observations 135 insurers operating 17 segments. For each segment, indices literature were calculated their premiums profits estimated. Results: increases related reductions companies’ revenues, but without reduction profits. However, if insurer among market's largest, part economic group, nullified can generate premiums’ profits, suggesting exercises some power by raising premiums, reinforcing structure-conduct-performance hypothesis. Conclusions: sectorial greater life than non-life LOB, with pointing four largest companies, highest collections 2003 2018, holding 90% share. In addition, collection more 80% average, concomitant drop total number players.