The correlation between financial deepening and insurance sector in developing countries: The Turkish market analysis

In this study, we analyzed the correlation between financial deepening and insurance business with quantitative and qualitative inquiries. In the first chapter of the study, the conceptual definitions of financial deepening, insurance industry and their relations with each other were examined with their theoretical and practical backgrounds. Furthermore, in the second chapter the first chapter's theoretical and practical studies were examined for the Turkish insurance market. With this concept, the current picture of financial deepening in our markets and the role of the insurance sector within this process were analyzed. Last but not least in the third chapter, the theoretical relationship between financial deepening and the development of the insurance industry was tested with econometric analysis with respect to the quantitative and qualitative inputs that already specified in the first and the second chapters. In accordance with the results, the null hypothesis, there is not any meaningful relationship between the development of insurance sector and level of financial deepening of the economy, was rejected and it has been clarified that level of insurance sector's development is a key contributor to the financial deepening journey of an economy.