LONG-RUN EQUILIBRIUM RELATIONSHIPS AMONG INSURANCE PREMIUM PRODUCTION WITH INCOME AND PURCHASING POWER

Although demand for insurance products is commonly analysis, the studies on premium production that is main funding sources of insurance companies is not more. Most of the studies carried out to date have addressed the insurance industry of a single country. In this study, long-run relationships have been investigated among income per capita and purchaising power per capita with total premium production of insurance companies in 32 European countries. In analysis conducted with annual data during 1992-2012 period were used alternative panel cointegrations tests. The findings showed that variables are cointegrated and indicate the presence of long-term equilibrium relationships among them.