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Determinants of the Solvency of Insurance Companies in Palestine

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  • Yousef Abdel Latif Abdel Jawad
  • Issam Ayyash

Abstract

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.

Suggested Citation

  • Yousef Abdel Latif Abdel Jawad & Issam Ayyash, 2019. "Determinants of the Solvency of Insurance Companies in Palestine," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(6), pages 188-195, October.
    • Handle: RePEc:jfr:ijfr11:v:10:y:2019:i:6:p:188-195
    DOI: 10.5430/ijfr.v10n6p188
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    References listed on IDEAS

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    2. Caporale, Guglielmo Maria & Cerrato, Mario & Zhang, Xuan, 2017. "Analysing the determinants of insolvency risk for general insurance firms in the UK," Journal of Banking & Finance, Elsevier, vol. 84(C), pages 107-122.
    3. Yakob Rubayah & Yusop Zulkornain & Radam Alias & Ismail Noriszura, 2012. "Solvency Determinants of Conventional Life Insurers and Takaful Operators," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 6(2), pages 1-25, June.
    4. Jannes Rauch & Sabine Wende, 2015. "Solvency Prediction for Property-Liability Insurance Companies: Evidence from the Financial Crisis," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 40(1), pages 47-65, January.
    5. Yung-Ming Shiu, 2005. "The determinants of solvency in the United Kingdom life insurance market," Applied Economics Letters, Taylor & Francis Journals, vol. 12(6), pages 339-344.
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    Cited by:

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