AN EVALUATION ON THE PREMIUM/LOSS RELATIONSHIP OF AIRCRAFT INSURANCE IN TURKEY FOR 2019-2023

Özet

The insurance system cannot prevent losscausing events, but it protects the insured against these damages by paying for their financial loss. The same is true for aircraft. The study aims to determine whether there is causality between aviation insurance premium production and claims, total insurance premium production and claims for the period 2019-2023 in Türkiye. For this purpose, 5 insurance companies with high aviation insurance premium production were selected. In order to analyze the variables in the study, unit root tests were applied first. ADF and PP tests were applied for unit root tests. VAR analysis was performed to determine the appropriate lag and Granger Causality Test analysis was used to evaluate the short-run relationship. According to the results obtained, it is concluded that aircraft outstanding claims are the cause of total paid claims, aircraft insurance premium is the cause of total outstanding claims, and aircraft outstanding claims are the cause of total outstanding claims and a short-run relationship between the variables has been identified.

Abstract

The insurance system cannot prevent losscausing events, but it protects the insured against these damages by paying for their financial loss. The same is true for aircraft. The study aims to determine whether there is causality between aviation insurance premium production and claims, total insurance premium production and claims for the period 2019-2023 in Türkiye. For this purpose, 5 insurance companies with high aviation insurance premium production were selected. In order to analyze the variables in the study, unit root tests were applied first. ADF and PP tests were applied for unit root tests. VAR analysis was performed to determine the appropriate lag and Granger Causality Test analysis was used to evaluate the short-run relationship. According to the results obtained, it is concluded that aircraft outstanding claims are the cause of total paid claims, aircraft insurance premium is the cause of total outstanding claims, and aircraft outstanding claims are the cause of total outstanding claims and a short-run relationship between the variables has been identified.

Yazarlar

Hakan ÖZCAN

Anahtar Kelimeler

Insurance, Air Vehicles, Premium, Claim

JEL Codes

G22, E64, L93, E42

Yayın Bilgileri

Cilt 5, Sayı 1, 2025 · Sayfa 1-10

DOI: 10.52898/ijif.2025.1

Dosyalar