The effects of increases in institutional quality on the insurance sector: An empirical study on Türkiye

This study analyzes the effects of institutional quality on the insurance sector in Turkey through empirical methods. In the model developed within the framework of institutional economics theory, the relationship between indicators such as rule of law, real exchange rate and inflation and insurance and financial services is analyzed. The time series analysis using Turkey's data for the period 1993-2023 reveals that the improvement in institutional quality factors directly affects the insurance sector, which in turn makes a significant contribution to economic growth. The findings show that insurance penetration and financial stability are higher in countries with strong institutional infrastructure. The study also emphasizes that increasing regulatory transparency, property security and economic freedom will improve the investment climate and accelerate the integration of insurance with financial markets. The policy recommendations for Turkey emphasize the driving force of institutional reforms in economic development and aim to strengthen the strategic role of the insurance sector in this process.