Insurance Expenditures and Gross Domestic Product Variables Effect on Insurance Market Share

Abstract

Purpose – The insurance sector is one of the most important sectors in the economy with its fund reputation and risk transfer system. The insurance sector has a structure that is highly related to the development of the economy and consumption. The aim of the study is to investigate Turkey’s insurance spending and the effect of the variables of gross domestic product to the insurance market share in 1990-2019. Design/methodology/approach – In the study, cointegration coefficients were found by using cointegrated regression analysis and with the help of Dynamic Least Squares, Fully Modified OLS and Canonical Cointegration Regression models. In this way, the direction of the relationship between variables was determined. Findings – In the study, it is found that the increase in the gross domestic product and insurance spending between 1990 and 2019, positively effects the insurance market share and contributes to the rise in the insurance market share. Discussion – It was concluded that all three cointegrated regression models yielded very close results and the results of the three models overlapped with each other. The efforts to increase the Gross Domestic Product will also contribute to the increase of the insurance market share and insurance expenditures. Efforts to increase insurance expenditures will also contribute to the increase in insurance market share.