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

Abstract

In this study, it is analyzed the income baseddeterminants of premiums that produced byinsurance companies in developed and emergingeconomies from the European case. Within theframework of the debt crisis in Europe, it has alsobeen investigated how premium productionof insurance companies is affected by crises incountries where wealth and insurance awarenessare high. The analyzes were performed usingsystem dynamic panel data models and data from32 countries. Findings indicate that premiumproduction of insurance companies is affected byincome-based determinants such as per capitapurchasing power and per capita savings. Thevariables such as output gap and unemploymentthat indicating volume of the economic activityhave also an impact on the insurance premiums.In addition, it was determined that the seriouscrises that took place behind one after another alsoreduced premium production.