Performance determinants of non-life insurance firms: a systematic review of the literature
- Zinyoro, Tafadzwanash, Aziakpono, Meshach J
- Authors: Zinyoro, Tafadzwanash , Aziakpono, Meshach J
- Date: 2024
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/469919 , vital:77307 , https://doi.org/10.1080/23311975.2024.2345045
- Description: The performance of non-life insurers is essential to the economy because of their role in mitigating the risks firms and households face. This study provides a comprehensive overview of studies examining factors affecting non-life insurers’ performance. Based on 235 studies published between 1990 and 2021, the review demonstrates that firm-level factors such as size, organisational form, diversification, capital structure, risk, reinsurance, corporate governance, distribution system, and group affiliation, and external factors such as market structure, macroeconomic, financial, and institutional development are the major determinants of non-life insurers’ performance. Although the empirical evidence on the effect of these factors is generally mixed, firm size, capitalisation, risk, macroeconomic conditions, and, to some extent, corporate governance and market structure issues show a clear relationship with insurer performance. One of the implications of this study is that there may be a need for increased solvency surveillance, especially for smaller insurers, which appear to have a higher risk of insolvency than their larger counterparts.
- Full Text:
- Date Issued: 2024
- Authors: Zinyoro, Tafadzwanash , Aziakpono, Meshach J
- Date: 2024
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/469919 , vital:77307 , https://doi.org/10.1080/23311975.2024.2345045
- Description: The performance of non-life insurers is essential to the economy because of their role in mitigating the risks firms and households face. This study provides a comprehensive overview of studies examining factors affecting non-life insurers’ performance. Based on 235 studies published between 1990 and 2021, the review demonstrates that firm-level factors such as size, organisational form, diversification, capital structure, risk, reinsurance, corporate governance, distribution system, and group affiliation, and external factors such as market structure, macroeconomic, financial, and institutional development are the major determinants of non-life insurers’ performance. Although the empirical evidence on the effect of these factors is generally mixed, firm size, capitalisation, risk, macroeconomic conditions, and, to some extent, corporate governance and market structure issues show a clear relationship with insurer performance. One of the implications of this study is that there may be a need for increased solvency surveillance, especially for smaller insurers, which appear to have a higher risk of insolvency than their larger counterparts.
- Full Text:
- Date Issued: 2024
Performance determinants of life insurers: A systematic review of the literature
- Zinyoro, Tafadzwanash, Aziakpono, Meshach J
- Authors: Zinyoro, Tafadzwanash , Aziakpono, Meshach J
- Date: 2023
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/469908 , vital:77306 , https://doi.org/10.1080/23322039.2023.2266915
- Description: The life insurance industry plays a crucial role in the economy as it serves as one of the channels through which countries mobilize long-term savings, promote the development of capital markets, foster efficient capital allocation, and substitute and complement government security programs. Therefore, the performance of this sector is imperative. Since the early 1990s, researchers have been paying particular attention to the performance of life insurance firms, with a specific emphasis on identifying the key determinants of their performance. The objective of this study is to synthesize the studies that have explored this topic. Using a systematic literature review approach, the study reviews 129 studies published between 1990 and 2021. The analysis reveals that the literature primarily examines factors such as size, organizational structure, capital composition, diversification, distribution systems, risk management practices, and reinsurance strategies as key firm-specific drivers of life insurer performance. Additionally, the study underscores the importance of competition and macroeconomic conditions as commonly discussed external determinants. While a clear relationship between performance and factors like firm size, organizational structure, and risk management practices is evident, the impact of other factors remains inconclusive. One of the implications of this study is that policymakers should enact laws that promote competition in the insurance industry. The study also reveals several research gaps, including methodological gaps.
- Full Text:
- Date Issued: 2023
- Authors: Zinyoro, Tafadzwanash , Aziakpono, Meshach J
- Date: 2023
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/469908 , vital:77306 , https://doi.org/10.1080/23322039.2023.2266915
- Description: The life insurance industry plays a crucial role in the economy as it serves as one of the channels through which countries mobilize long-term savings, promote the development of capital markets, foster efficient capital allocation, and substitute and complement government security programs. Therefore, the performance of this sector is imperative. Since the early 1990s, researchers have been paying particular attention to the performance of life insurance firms, with a specific emphasis on identifying the key determinants of their performance. The objective of this study is to synthesize the studies that have explored this topic. Using a systematic literature review approach, the study reviews 129 studies published between 1990 and 2021. The analysis reveals that the literature primarily examines factors such as size, organizational structure, capital composition, diversification, distribution systems, risk management practices, and reinsurance strategies as key firm-specific drivers of life insurer performance. Additionally, the study underscores the importance of competition and macroeconomic conditions as commonly discussed external determinants. While a clear relationship between performance and factors like firm size, organizational structure, and risk management practices is evident, the impact of other factors remains inconclusive. One of the implications of this study is that policymakers should enact laws that promote competition in the insurance industry. The study also reveals several research gaps, including methodological gaps.
- Full Text:
- Date Issued: 2023
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