Abstract
The objective of this paper is to provide a theorectical and empirical frame work to asses the tradeoffs among three fundamental objectives: profitability, growth, and safety in global general insurance indusry (USA, Japan and Korea). Our financial performance analysis relies on panel data of global general insurance industry for the years from 2010 to 2019 by using key financial variables. A quantitative evaluation of three countries genneral insurers' financial growth, profitability and saferty areas is carried out. The financial evaluation is done in the growth, profitability and safety factors including premium and capital increse ratio, underwriting and investment income, leverage and solvency ratio. The results show that there are no key differences among three impact areas: impact of general insurance growth on profitability, profitability on saferty, safety on growth in three countries. Also, the results suggest that the impact of safety on profitability and growth is a positive and significant relationship and emphasize the need to jointly consider growth, profitability, and safety when evaluating general insurers financial performance. Therefore, global general insurance indusry has to strive to strengthen financial soundness through growth and profitability because underwriting profit and growth depend on the level of safety.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
