Limitations In The App Lication Of Concentration Indicators – Example Of Insurance Market In Serbia, Croatia, Slovenia, Romania And Austria

Contemporary competition policy is characterized by the application of economic principles and economic analysis in its legal framework in order to measure companies’ anti-competitive behavior. The aim of the paper is to show the possibilities and limitations of indicator application as an instrument for the assessment of companies’ non-competitive behavior concentration on the example of the insurance market of the selected countries (Serbia, Croatia, Slovenia, Romania and Austria). The paper analyses the following indicators: Concentration ratio of the four largest companies, Herfindahl-Hirschman index, Lorenz curve, Gini coefficient and Entropy index. The analysis showed that independent application of indicator concentration is not sufficient and should be supplemented with qualitative data on: market characteristics, industry tradition, the height of entry barriers, manager behavior and the like. Only then one can expect that the market concentration analysis is complete and useful for the implementation of anti-monopolistic measures.