An Analysis of Factors Affecting the Performance of Insurance Companies in Zimbabwe
Анализ факторов, влияющих на деятельность страховых компаний в Зимбабве
2017-03-01
SCID: 54.1/uftrrpjd
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Expense ratio and claims ratioFactor analysisInsurance company performanceMultiple linear regressionZimbabwe insurance industry
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Abstract (AI)
The study sought to examine factors affecting the performance of insurance<br> companies in Zimbabwe. We utilized secondary data from twenty short-term<br> insurance companies. The data was for the period from 2010 to 2014. We used<br> factor analysis and multiple linear regression models to determine the factors<br> affecting performance and identifying their impact. Our findings revealed that<br> expense ratio, claims ratio and the size of a company significantly affect insurance<br> companies’ performance negatively. Whilst leverage and liquidity affect<br> performance positively. We recommend that insurance companies should<br> introduce mechanisms that reduces operational costs such as automated systems.
Key Findings
1
Expense ratio, claims ratio, and company size significantly negatively affect insurance company performance.
2
Factor analysis and multiple linear regression identify expense ratio, claims ratio, company size, leverage, and liquidity as performance-related factors.
3
Leverage and liquidity positively affect insurance company performance.
4
The study analyzes secondary data from 20 short-term insurance companies in Zimbabwe covering 2010–2014.
5
The study recommends mechanisms such as automated systems to reduce operational costs and improve performance.
Research Object
Short-term insurance companies in Zimbabwe
Research Subject
the effects of expense ratio, claims ratio, company size, leverage, and liquidity on insurance company performance
Publication Details
Publication Date
2017-03-01
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