The Effect of the 2004 EU Enlargement on the Development and Similarity of the Insurance Sectors in the EU

The enlargement of the European Union to new countries in 2004 introduced mechanisms to support the development of various social and economic areas, while also aiming to level the differences between the member states. The primary purpose of this study is to analyse the development and similarities of the insurance markets in the old and new member states of the EU after the enlargement in 2004. We examine the insurance sector of both groups of countries, i.e., those that were members before 2004 and those that joined in 2004, using Hellwig’s development measure, which takes into account several characteristics. Additionally, we analyse the similarity of these countries using three statistical methods of unsupervised classification: Ward’s method, the k-means method, and the Partitioning Among Medoids. Our results indicate that there was a significant variation in the insurance characteristics of these compared groups of EU members after 2004. In general, the insurance markets of the old and new EU countries developed differently. Since the enlargement in 2004, the insurance markets of the old and new EU countries have not yet aligned.