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Does Bancassurance Affect Performance of Non-life Insurance Sector ? Case of EU Countries

Author

Listed:
  • Tomislava Pavic Kramaric

    (University of Split - University Department of Professional Studies)

  • Ivan Pavic

    (University of Split - Faculty of Economics)

  • Marko Miletic

    (University of Split - University Department of Professional Studies)

Abstract

The aim of this paper is to test the influence of bancassurance as a distribution channel on performance of non-life insurance sector in selected European countries. The analysis refers to 2009 ? 2015 period and it is conducted using static panel analysis. Performance measures employed comprise of sales profitability as well as of profitability ratio of technical activity whereas independent variables used in the model include share of bancassurance, market share, gross written premium growth rate, claims growth rate, insurance density, share of premium in GDP, share of reinsurance and number of insurance companies. The results of the analysis in both models reveal that market share prove to be statistically significant determinant of insurance sector performance negatively affecting performance. Furthermore, insurance density has statistically significant and positive influence on performance measured with profitability ratio of technical activity.

Suggested Citation

  • Tomislava Pavic Kramaric & Ivan Pavic & Marko Miletic, 2019. "Does Bancassurance Affect Performance of Non-life Insurance Sector ? Case of EU Countries," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 8(2), pages 96-108, December.
    • Handle: RePEc:sek:jijoes:v:8:y:2019:i:2:p:96-108
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    References listed on IDEAS

    as
    1. Chen-Ying Lee, 2014. "The Effects of Firm Specific Factors and Macroeconomics on Profitability of Property-Liability Insurance Industry in Taiwan," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(5), pages 681-691, May.
    2. Joseph Oscar Akotey & Frank G. Sackey & Lordina Amoah & Richard Frimpong Manso, 2013. "The financial performance of life insurance companies in Ghana," Journal of Risk Finance, Emerald Group Publishing, vol. 14(3), pages 286-302, May.
    3. Chen-Ying Lee, 2014. "The Effects of Firm Specific Factors and Macroeconomics on Profitability of Property-Liability Insurance Industry in Taiwan," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(5), pages 681-691.
    4. Elif Akben-Selcuk, 2016. "Does Firm Age Affect Profitability? Evidence from Turkey," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 5(3), pages 1-9, September.
    5. Tomislava Pavic Kramaric & Marko Miletic & Ivan Pavic, 2017. "Profitability Determinants of Insurance Markets in Selected Central and Eastern European Countries," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 6(2), pages 100-123, November.
    6. repec:eme:jrfpps:v:14:y:2013:i:2:p:286-302 is not listed on IDEAS
    7. William Greene & Dan Segal, 2004. "Profitability and Efficiency in the U.S. Life Insurance Industry," Journal of Productivity Analysis, Springer, vol. 21(3), pages 229-247, May.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Abayomi Oredegbe, 2022. "Competition and Banking Industry Stability: How Do BRICS and G7 Compare?," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 21(1), pages 7-31, March.

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    More about this item

    Keywords

    bancassurance; non-life insurance industry performance; EU countries; static panel analysis;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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