competition effects on policyholder's welfare and insurer's risk

In this study, the index of market competition, consumer welfare lost, underwriting risk and the relationship between them and the process of privatization in the insurance industry, is studied. The results show that with the privatization in the insurance industry, the insurance market has lost the monopoly, lost welfare during the last ten years, but dropped sharply increased underwriting risk.
In view of the increasing competition in the market, has increased the need for effective monitoring. Regression calculations show that a strong and significant relationship is between privatization (increasing the number of insurance companies), competition, market risks and consumer welfare.