Economic crisis and determinants of solvency in the insurance sector: new evidence from Spain

Moreno, Ignacio; Parrado-Martínez, Purificación; Trujillo‐Ponce, Antonio

doi:10.1111/acfi.12422

Cited by 17 publications

(15 citation statements)

References 54 publications

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“…Based on past study in many countries that revealed various findings, the determination of factors is likely to have an impact on the solvency of Sharia Life Insurance. According to Srivastava & Ray's (2013) research, company size had a strong influence on the solvency of insurance companies in India, as did research by Abduh & Zein Isma (2017) and Abera & Yirsaw (2020), but size companies were not significant to the solvency of insurance companies in Spain, contrary to Moreno et al, (2020). Contribution growth affected the solvency of Sharia businesses in Malaysia, (Abduh & Zein Isma (2017), but Abera & Yirsaw's (2020) research suggested that contribution growth had no influence on insurance companies in Ethiopia.…”

Section: Introductionmentioning

confidence: 94%

“…The size of a corporation is determined by its total assets. Because the average loss of big firms is easier to forecast, large insurance companies have a low likelihood of default with the same amount of capital as small insurance companies (Moreno et al, 2020). Based on this explanation, the following hypothesis is proposed: H1: The size of a company has a major impact on its solvency.…”

Section: Theoretical Basis and Hypothesis Developmentmentioning

confidence: 99%

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The Determinant Factors of Solvency on Sharia Life Insurance in Indonesia

Afiqah

Laila

2021

JESTT

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ABSTRAKPenelitian bertujuan untuk menilai ada tidaknya pengaruh ukuran perusahaan, pertumbuhan kontribusi, hasil investasi, dan likuiditas terhadap solvabilitas yang diproksikan dengan Risk Based Capital pada Asuransi Jiwa Syariah di Indonesia secara parsial ataupun simultan. Penentuan sampel dengan metode purposive sampling dan ditemukan 10 perusahaan sampel. Dengan bantuan aplikasi Eviews9 melalui uji regresi data panel didapatkan persamaan RBC = -563.8638 + 44.05145 Ukuran + 1.922926 Kontribusi - 0.333289 Investasi + 0.911149 Likuiditas + e. Hasil penelitian menunjukkan keempat variabel bersama-sama memengaruhi solvabilitas. Ukuran perusahaan memiliki pengaruh positif signifikan sementara itu pertumbuhan kontribusi, hasil investasi, dan likuiditas menunjukkan tidak adanya pengaruh terhadap solvabilitas Asuransi Jiwa Syariah di Indonesia periode 2015-2019.Kata Kunci: Ukuran Perusahaan, Pertumbuhan Kontribusi, Hasil Investasi, Likuiditas, Solvabilitas, Asuransi Jiwa Syariah. ABSTRACTThe purpose of this study isto determine whether there is an effect of company size, premium growth, investment returns, and liquidity on solvency as proxied by Risk Based Capital on sharia life insurance in Indonesia partially or simultaneously. Determination of the sample by purposive sampling method found 10 sample companies. With the help of Eviews9 application through the panel data regression test, it is obtained the equation RBC = -563.8638 + 44.05145 Size + 1.922926 Contribution - 0.333289 Investment + 0.911149 Liquidity + e. The results showed that the four variables together affect solvency. Company size has a significant positive effect meanwhile the premium growth, investment returns, and liquidity shows no influence on the solvency of sharia life insurance in Indonesia period 2015-2019.Keywords: Company Size, Premium Growth, Investment Return, Liquidity, Solvency, Sharia Life Insurance.

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Section: Introductionmentioning

confidence: 94%

Section: Theoretical Basis and Hypothesis Developmentmentioning

confidence: 99%

The Determinant Factors of Solvency on Sharia Life Insurance in Indonesia

Afiqah

Laila

2021

JESTT

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“…Building on the results of previous research, [1][2][3][4][5][6] the "inno-diversification approach technique [7][8] with the utilization of the methods of economic interpretation of findings, functional, comparative and static analysis" [6] became the basis of the prospective analysis.…”

Section: Research Techniquementioning

confidence: 99%

“…Problems of financial stability assessment in insurance organisations attract stable scientific and practical interest. Scientists discover various connections between the statutory regulation of the sector and insurers' financial soundness [2], between the capital structure and financial stability [3], between financial stability and risks [4], between risks and digitisation [5], between capital and risks [6], etc.…”

Section: Introductionmentioning

confidence: 99%

Forecasting the Agricultural Risk Insurance System Parameters

Chernyakov

Chernyakova

et al. 2021

SHS Web Conf.

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The current insurance market situation is characterised by a high degree of instability. Many factors influence insurance company premiums, including the number of contracts, the claim repayment ratio, capital structure, underwriting profitability and risk. The insurance sector serves as a protective barrier for the country’s economy, defending it from various risks. At the same time, insurance company premiums are influenced by risks too. The number of research articles testifies to a stable interest in this problem. However, there is no technique for establishing the connection between the insurance premium and the many factors it is sensitive to. The article is devoted to the development of new models and, based on them, some digital technologies for forecasting agricultural insurance risk parameters. Based on a paradoxical theory of regulation and inno-diversification approach, an author’s model was developed for forecasting activity. It was used to do calculations of the main indicators of the agiructural risk insurance system. As a result, it became possible to trace the main patterns and tendencies in the development of the agricultural risk insurance system in Russia. Special attention was paid to the period after 2017 when it started to stabilise and recover after the crises as a consequence of nonoptimal managerial solution as refers to the inclusion of the agricultural risk insurance system in the “single subsidy”.

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“…In another study in Spain (Moreno, et al, 2018) to analyze the factors determining the solvency of insurance companies operating from 2008-2015, using a dynamic panel data model. The study found that actual solvency margins were positively correlated with profitability, underwriting risk, and mutual-type organization, and inversely with company size, reinsurance use, and life insurance specialization.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of the Solvency of Insurance Companies in Palestine

Jawad

Ayyash

2019

IJFR

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The study aimed to investigate the factors that affect the solvency of the insurance companies in Palestine and to highlight the nature and strength of the relationship between liquidity, investment, leverage, claims and the solvency of the insurance companies in Palestine.To achieve the objectives of the study, the descriptive and quantitative analysis methods were used in the study. Based on the data of the financial statements of seven insurance companies (out of 9 companies) and by using regression of fixed effects of panel data for 2010-2017, the study found that the claims have a positive effect on the financial solvency and leverage has a negative effect on the solvency of insurance companies in Palestine, while investment and liquidity have an insignificant effect on financial solvency.

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Economic crisis and determinants of solvency in the insurance sector: new evidence from Spain

Cited by 17 publications

References 54 publications

The Determinant Factors of Solvency on Sharia Life Insurance in Indonesia

The Determinant Factors of Solvency on Sharia Life Insurance in Indonesia

Forecasting the Agricultural Risk Insurance System Parameters

Determinants of the Solvency of Insurance Companies in Palestine

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