Examining the Relationship between Bankassurance and Profitability in Banks with High Premium Production: The Case of Türkiye

Hakan Ozcan, Ali Celik and Tayfun Timuray

Journal of BRSA Banking and Financial Markets, 2023, vol. 17, issue 2, 153-164

Abstract: Approximately ¼ of the premium production made by insurance companies in Turkey originates from banks. In today's banking system, profit consists not only of loans granted but also of commission income from other banking activities. In this study, it is aimed to determine to what extent selected insurance variables such as life, motor insurance and personal accident premium production affect the net profit margin of the 5 banks with the highest insurance premium production in Turkey, within the scope of the years between 2013 and 2023. According to the robust panel estimation results obtained in this direction, while other factors are constant, it is concluded that a 1% increase in motor insurance premium production will increase the net profit of banks by 0.65%, while a 1% increase in life premium production will increase the net profit of banks by 0.53% has been reached.

Keywords: Insurance; Banking; Profitability; Panel Data Analysis (search for similar items in EconPapers)
JEL-codes: C33 G21 G22 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:bdd:journl:v:17:y:2023:i:2:p:153-164

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