Macroeconomic Determinants of Insurance Companies’ Financial Stability: The Case of the Czech Republic-Reference-Cited by-同舟云学术

Macroeconomic Determinants of Insurance Companies’ Financial Stability: The Case of the Czech Republic

Published:2023-04-01 Issue:1 Volume:18 Page:218-230
ISSN:2344-5416
Container-title:Studies in Business and Economics
language:en
Short-container-title:

Author:

Palečková Iveta¹,Přečková Lenka²

Affiliation:

1. 1 Silesian University , Czech Republic

2. 2 Silesian University , Czech Republic

Abstract

Abstract The study assesses the determinants of the financial stability of the Czech commercial insurance companies within the period 2004-2019. The eight macroeconomic determinants of the financial stability of insurance are analysed for both insurers, i.e., with predominated life and non-life insurance. The generalized method of moments is used for empirical analysis. The results show four macroeconomic variables were statistically significant determinants of financial stability in the case of non-life insurers and three determinants influenced the financial stability of life insurers. The study concludes that the determinants of the financial stability of non-life insurers were different that in the case of life insurers. Moreover, the impact of several determinants is also different in case life and non-life insurers in the Czech Republic.

Publisher

Walter de Gruyter GmbH

Subject

Economics, Econometrics and Finance (miscellaneous),Business, Management and Accounting (miscellaneous),Social Psychology

Link

https://www.sciendo.com/pdf/10.2478/sbe-2023-0012

Reference35 articles.

1. Abdelraheem, L., Maroof Mousa, M.M., (2017), The Effect of Inflation and Exchange Rates on Reinsurance, Solvency and Capital of Non-Life Insurance Companies, Paper presented at the Cairo University International Conference on Business Sciences (CUCBS 2017): Roadmaps for Sustainable Businesses.

2. Ahlgrim, K.C., D’Arcy, S.P., (2012), The Effect of Deflation or High Inflation on the Insurance Industry, Causality Actuarial Society, available online at https://www.soa.org/globalassets/assets/files/research/projects/research-2012-02-effect-deflation-report.pdf

3. Baluch, F., Mutenga, S., Parsons, C., (2011), Insurance, systemic risk and the financial crisis, The Geneva Papers on Risk and Insurance - Issues and Practice, Vol. 36 no. 1, pp. 126-163, DOI: 10.1057/GPP.2010.40.

4. Berhe, T., Kaur, P., (2017), Determinants of insurance companies’ profitability Analysis of insurance sector in Ethiopia, International Journal of Research in Finance and Marketing, Vol. 7, no. 4, pp. 124-137.

5. Browne, M.J., Carson, J.M., Hoyt, R.E., (1999), Economic and Market Predictors of Insolvencies in the Life-Health Insurance Industry, The Journal of Risk and Insurance, Vol. 66, no. 4, pp. 643-659, DOI: 10.2307/253868.