European Financial and Accounting Journal
European Financial and Accounting Journal
European Financial and Accounting Journal
Faculty of Finance and Accounting, University of Economics, Prague

European Financial and Accounting Journal 2018/4

The Effect of the Media Reporting of Terrorist Attacks on the Czech Travel Insurance Market between 2011–2016


[full text (PDF)]

Petra Budská

Media plays a significant part of our lives and it has the power to provide us with ideas and/or some perspective on the selected topics. Terrorist attacks cause fear which is spread by media. The fact is that during the biggest “terrorist fever” in the Czech Republic between 2015–2016, the number of terrorist attacks was paradoxically declining, and vice versa. The presented paper answers the question of how large is the effect of the media reporting of terrorist attacks on the number of travellers abroad and when – after how many quarters – the travellers´ reaction follows. Based on the quarterly data of the number of travellers abroad and the gross premium written we found out that the media reporting of terrorist attacks is a significant variable and the decline in the number of travellers in some years represents the “loss of one quarter” of travellers. Using the panel data model, we found out that although the number of travellers abroad has declined, the gross premium written has increased. Higher growth as well as significance in terms of the gross premium written was recorded only for the sole specialist on travel insurance in the Czech Republic – the ERV European Insurance Company when compared with the travel insurance market as a whole.

Keywords: Insurance Premium, Media, Panel Data Models, Terrorist Attacks

JEL Classification: C23, C29, G22, M39


Annual Reports of the Czech Insurance Association. Available from: <>. [22 March 2018].

Annual Reports of the ERV European Insurance Company. Available from: <>. [22 March 2018].

Baltagi, B., H., 2005. Econometric Analysis of Panel Data. John Wiley & Sons Inc., Hoboken.

Bonanno, A., G., Galea, S., Bucciarelli, A., Vlahov, A., 20057. What predicts psychological resilience after disaster? The role of demographics, resources and life stress. Journal of Consulting and Clinical Psychology 2007, 75, 671-682. DOI: 10.1037/0022-006x.75.5.671.

Cipra, T., 2008. Finanční ekonometrie. Ekopress, Prague.

Czech Statistical Office (CSU). Available from: <>. [22 March 2018].

European Union Terrorism Situation and Trend Reports. Available from: <>. [22 March 2018].

Fredericson, B., L., Tugade, M., M., Waugh, C., E., Larkin, G., R., 2003. What good are positive emotions in crisis? A prospective study of residence and emotions following the terrorist attacks on the United States on September 11th, 2001. Journal of Personality & Social Psychology 84, 365-376. DOI: 10.1037//0022-3514.84.2.365.

Macroeconomic Outlook of the Ministry of Finance of the Czech Republic. Available from: <>. [22 March 2018].

Novák, P., 2007. Analýza panelových dat. Acta Oeconomica PragensiaActa Oeconomica Pragensia 15, 71-78. DOI: 10.18267/j.aop.40.

Statistics of Insurance Europe. Available from: <>. [22 March 2018].

Yechiam, E., Barron, G., Erev. I., 20015. The role of personal experience in contribution to different patterns of response to rare terrorist attacks. Journal of Conflict Resolution 49, 430-439. DOI: 10.1177/0022002704270847.