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Impact of Brand Dynamics on Insurance Premiums in Turkey

Author

Listed:
  • Yhlas SOVBETOV

    (Institute of Social Sciences, Istanbul University, Istanbul, Turkey)

Abstract

This paper examines influences of brand dynamics on insurance premium productions in Turkey using a dynamic GMM panel estimation technique sampling 31 insurance firms over 2005-2015. The results reveals that brands trust appears as a chief driving force behind premium production where its unit increase augments premium outputs by 5.32 million Turkish Liras (TL). Moreover, the brand value of firms also appears a statistically significant determinant of premium sales, but its size impact remains limited comparing to brand trust, i.e. a million TL increase in brand value generates only 0.02 million TL increase in sales. On the other hand, the study also documents a strong momentum driven from past years premium production with trade-off magnitude of 1 to 0.85. This might imply a higher loyalty-stickiness of customers in Turkey, as well as a self-feeding "bandwagon effect".

Suggested Citation

  • Yhlas SOVBETOV, 2016. "Impact of Brand Dynamics on Insurance Premiums in Turkey," Turkish Economic Review, KSP Journals, vol. 3(3), pages 453-465, September.
    • Handle: RePEc:ksp:journ2:v:3:y:2016:i:3:p:453-465
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    References listed on IDEAS

    as
    1. Feng Jui Hsu & Tsai Yi Wang & Mu Yen Chen, 2013. "The Impact of Brand Value on Financial Performance," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 3(6), pages 1-9.
    2. Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988. "Estimating Vector Autoregressions with Panel Data," Econometrica, Econometric Society, vol. 56(6), pages 1371-1395, November.
    3. Kazuhiko Hayakawa, 2009. "First Difference or Forward Orthogonal Deviation- Which Transformation Should be Used in Dynamic Panel Data Models?: A Simulation Study," Economics Bulletin, AccessEcon, vol. 29(3), pages 2008-2017.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Brand Value; Intangible Assets; Panel GMM; Insurance Premiums;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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