Impact of Brand Dynamics on Insurance Premiums in Turkey

Abstract. This paper examines influences of brand dynamics on insurance premium productions in Turkey using a dynamic GMM panel estimation technique sampling 31 insurance firms over 2005-2015. The results reveals that brands trust appears as a chief driving force behind premium production where its unit increase augments premium outputs by 5.32 million Turkish Liras (TL). Moreover, the brand value of firms also appears a statistically significant determinant of premium sales, but its size impact remains limited comparing to brand trust, i.e. a million TL increase in brand value generates only 0.02 million TL increase in sales. On the other hand, the study also documents a strong momentum driven from past years premium production with trade-off magnitude of 1 to 0.85. This might imply a higher loyalty-stickiness of customers in Turkey, as well as a self-feeding "bandwagon effect".Keywords. Brand Value; Intangible Assets; Panel GMM; Insurance Premiums.JEL. G12, G22, M30, L60