In the Debt Crisis Axis Income-based Determinants of Insurance Premium Production In Europe

Abstract

In this study, it is analyzed the income based

determinants of premiums that produced by

insurance companies in developed and emerging

economies from the European case. Within the

framework of the debt crisis in Europe, it has also

been investigated how premium production

of insurance companies is affected by crises in

countries where wealth and insurance awareness

are high. The analyzes were performed using

system dynamic panel data models and data from

32 countries. Findings indicate that premium

production of insurance companies is affected by

income-based determinants such as per capita

purchasing power and per capita savings. The

variables such as output gap and unemployment

that indicating volume of the economic activity

have also an impact on the insurance premiums.

In addition, it was determined that the serious

crises that took place behind one after another also

reduced premium production.

Keywords

• Insurance,premium production,financial crisis,system dynamic panel data

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