The Impact of the 2008 Crisis on Total Insurers’ Investment Portfolio in Europe: Dynamic Panel Approach

Abstract

Economic and financial crises change several balances in countries and affect many different sectors. In 2008, the economic and financial crisis occurred in the west influenced the insurance sector more than the banking sector in European countries. Investment portfolio of insurance companies might be affected by many variables. It is though that the crisis does not direct impacts but it affects these variables and causes changes in insurers’ investment portfolio. In this study, models were formed in order to measure the impacts of the crisis on investment portfolio of insurance companies and results were compared. It was found out that the crisis in 2008 had impacts on total investment portfolio of European insurance companies and work and workplace premium were identified as the most effective variable in terms of increase in investment portfolio of companies.