DOES BANCASSURANCE AFFECT PERFORMANCE OF NON-LIFE INSURANCE SECTOR – CASE OF EU COUNTRIES

Tomislava Pavic Kramaric; Marko Miletic; Ivan Pavic

doi:10.20472/ES.2019.8.2.007

Authors

Tomislava Pavic Kramaric University of Split, University Department of Forensic Sciences, Croatia Author
Marko Miletic University of Split - University Department of Professional Studies, Croatia Author
Ivan Pavic University of Split - Faculty of Economics, Croatia Author

DOI:

https://doi.org/10.20472/ES.2019.8.2.007

Keywords:

Bancassurance, Non-life insurance industry performance, EU countries, Static panel analysis

Abstract

The aim of this paper is to test the influence of bancassurance as a distribution channel on the performance of the non-life insurance sector in selected European countries. The analysis covers the period 2009–2015 and is conducted using static panel analysis. Performance measures include sales profitability and the profitability ratio of technical activity, while independent variables comprise the share of bancassurance, market share, growth rate of gross written premiums, claims growth rate, insurance density, premium-to-GDP ratio, share of reinsurance, and the number of insurance companies. The results from both models indicate that market share is a statistically significant determinant of insurance sector performance, negatively affecting it. Furthermore, insurance density has a statistically significant and positive impact on performance measured by the profitability ratio of technical activity.

Data:
Received: 23 Sep 2019
Revised: 14 Nov 2019
Accepted: 6 Dec 2019
Published: 20 Dec 2019