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Measuring Financial Soundness Of Insurance Companies By Using Caramels Model – Case Of Croatia


  • Nikolina Smajla

    (Ph.D. Candidate, Polytechnic of Karlovac, Republic of Croatia)


Insurance companies are institutions that mobilize risk from individuals and companies through insurance contract making exposure to risk to the whole economy lower. Their financial soundness is a key to their success and stability of this part of financial sector and therefore regulators have developed different kinds of models to evaluate their work. The main purpose of this research is to explain one of the recent models used for analyzing financial soundness of insurance companies, CARAMELS model, and to understand the level of soundness of Croatian insurance companies. Methodology used to control and regulate insurance sector in Croatia is different from presented model, so this work gives a different view of the sector’s soundness. Some conclusions regarding given categories of financial soundness of the sector will be made based on data from global database of insurance companies (ISIS database). At the end of the paper recommendations for further research are made.

Suggested Citation

  • Nikolina Smajla, 2014. "Measuring Financial Soundness Of Insurance Companies By Using Caramels Model – Case Of Croatia," Interdisciplinary Management Research, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 10, pages 600-609.
  • Handle: RePEc:osi:journl:v:10:y:2014:p:600-609

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    References listed on IDEAS

    1. World Bank & International Monetary Fund, 2005. "Financial Sector Assessment : A Handbook," World Bank Publications - Books, The World Bank Group, number 7259, December.
    2. Mr. Udaibir S Das & Richard Podpiera & Nigel Davies, 2003. "Insurance and Issues in Financial Soundness," IMF Working Papers 2003/138, International Monetary Fund.
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    Cited by:

    1. A.V. Larionov, 2020. "Assessing the Financial Stability of Insurance Companies by Analyzing the Dynamics of Cash Flows," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 19(2), pages 208-224.

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    More about this item


    insurance companies; financial indicators; CARAMELS model;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies


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