Abstract:

Insurance is one of the cornerstones of modern life. Without insurance, today's society and economy can become inoperable in many ways. The insurance sector can be affected by political, economic, technological, climatic, etc. that may occur in daily life. protects individuals or companies against risks. The share of the insurance sector in the financing of investments and the development of financial services in developing economies is increasing day by day. Insurance companies contribute to economic growth by transferring the premiums they collect to the capital market. In Turkey, the insurance rate and the premiums collected are increasing every year. The share of the insurance sector in the Turkish financial sector is around 4%. When we compare this rate with the world insurance sector, it is seen that it is not sufficient. However, the growth dynamics of the sector is quite high in terms of the young population and new insurance branches in Turkey. This study examines the relationships between the insurance sector and economic growth in Turkey. The relationship between economic growth and the insurance sector was analyzed with the VAR model and the Granger Causality Test. The analysis was made using quarterly data between 2013:06-2021:06. The variables of Gross Domestic Product and premium production of the life insurance branch, premium production of the non-life insurance branch and total premium production were used in the analysis. GDP variables used in the analysis were obtained from the Central Bank of the Republic of Turkey EVEDS, and the variables H-PRIM, HD-PRIM and T-PRIM were obtained from the Insurance Association of Turkey (TSB). A positive and unidirectional relationship was determined between the insurance sector premium production and economic growth. Economic growth positively affects the premium production in the insurance sector, likewise, the premium production in the insurance sector is the cause of economic growth.

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