Abstract:

The purpose of this study is to explore the impact of concentration in the life insurance market on market growth by using monthly data in the period 2009-2018. In this study, market concentration was measured using HHI and Entropi index. Johansen’s integration test findings have found a meaningful relationship in the long term between the concentration in the life insurance market and the growth of the market. Also, according to DOLS, FMOLS and CCR forecast findings, there is a negative relationship between HHI and its values and market growth, while there is a positive relationship between Entropic values and market growth. These findings from the analysis confirm the negative relationship between the concentration and market growth suggested in the SCP approach. These findings show that it is necessary to develop competitive policies to improve the effectiveness of the life insurance market.

Abstract:

The aim of this research is to examine the impact of concentration on the market growth in the Turkey life insurance market, benefiting from 2009-2018 monthly data. , HHI and Entropi indices were used in the measurement of market concentration in this research. A significant relationship was found between concentration and market growth in the long term in the analysis of Johansen co-integration test findings. In addition, according to DOLS, FMOLS and CCR estimation findings, there is a negative correlation between HHI and   values with market growth, while there is a positive relationship between entropy values and market growth. These findings obtained from the analysis confirm the hypothesis of the existence of a negative correlation between market growth and the concentration proposed in the Traditional Structure-Behavior-Performance approach. According to these findings, in order to effectiveness in the life insurance market, policies supporting competition should be produced.

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