IDEAS home Printed from https://ideas.repec.org/a/taf/ijecbs/v27y2020i2p269-289.html
   My bibliography  Save this article

Stability, Competition, and Concentration in the Turkish Insurance Sector

Author

Listed:
  • Adnan Kasman
  • Saadet Kasman
  • Gamze Gökalp

Abstract

This paper examines the impact of competition and concentration on stability in the Turkish insurance sector over the period 2002–2014. The main results indicate that non–life insurers are more stable in a less competitive and highly concentrated environment. This finding provides support for the competition–fragility view in the Turkish non–life insurance sector. In contrast, life/pension insurers are more stable in a highly competitive and more concentrated market. Hence, our findings provide support for the competition–stability view for Turkish life/pension insurers. The results further indicate that higher market power decreases (increases) earnings volatility in the non–life (life/pension) insurance sector. A quadratic term of the competition measures was also used in this study to capture a possible nonlinear relationship between competition and risk. The results suggest an inverse U-shaped pattern for the non–life insurer’s case. That is, market power increases insurer stability until a threshold level. As for the life/pension insurer’s case, the results also support a U-shaped relationship between market power and stability. The results further show that there is no nonlinear relationship between competition and stability.

Suggested Citation

  • Adnan Kasman & Saadet Kasman & Gamze Gökalp, 2020. "Stability, Competition, and Concentration in the Turkish Insurance Sector," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 27(2), pages 269-289, May.
    • Handle: RePEc:taf:ijecbs:v:27:y:2020:i:2:p:269-289
    DOI: 10.1080/13571516.2019.1664835
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13571516.2019.1664835
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13571516.2019.1664835?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saeed, Asif & Alnori, Faisal & Yaqoob, Gohar, 2023. "Corporate social responsibility, industry concentration, and firm performance: Evidence from emerging Asian economies," Research in International Business and Finance, Elsevier, vol. 64(C).
    2. María Rubio-Misas, 2024. "Supervisory power and insurer financial stability: the role of institutional quality," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 49(4), pages 804-830, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ijecbs:v:27:y:2020:i:2:p:269-289. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CIJB20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.