IDEAS home Printed from https://ideas.repec.org/a/pkp/ijomas/v14y2025i2p417-431id4194.html
   My bibliography  Save this article

The practice of "Solvency-II" for pension fund and non-life insurance sustainability business towards government debt

Author

Listed:
  • Djuminah
  • Alfiansyah Deviar

Abstract

This research was conducted to find out how insurance companies with business sustainability insure government-run pension funds, which are vulnerable to the risk of default. The research focuses on the 18 OECD countries in the period 2011 to 2022 with the Path Analysis approach. The data are retrieved from World Bank Data and OECD website database; furthermore, the data quality is guaranteed. Although this study is conducted at the end of 2024, the research data for 2023 was incomplete, so it did not fulfil the balanced panel requirement. Hypothesis testing results show that pension funds affect non-life premiums. Then pension funds have a significant effect on both government debt and non-life insurance undertakings. Furthermore, pension funds affect government debt through non-life premiums. Similarly, pension funds affect non-life undertakings through non-life premiums. If the loss value is too large, the insurance company, jointly with other insurance companies, will share the risk of compensation. This collection of insurance companies is called the Insurance Undertaking. With Solvency-II, we will be able to bridge between non-life insurance companies and the government in risk prevention. Therefore, non-life insurance companies everywhere should strictly implement risk mitigation guidelines in accordance with the provisions in their respective countries.

Suggested Citation

  • Djuminah & Alfiansyah Deviar, 2025. "The practice of "Solvency-II" for pension fund and non-life insurance sustainability business towards government debt," International Journal of Management and Sustainability, Conscientia Beam, vol. 14(2), pages 417-431.
    • Handle: RePEc:pkp:ijomas:v:14:y:2025:i:2:p:417-431:id:4194
    as

    Download full text from publisher

    File URL: https://archive.conscientiabeam.com/index.php/11/article/view/4194/8545
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pkp:ijomas:v:14:y:2025:i:2:p:417-431:id:4194. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dim Michael (email available below). General contact details of provider: https://archive.conscientiabeam.com/index.php/11/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.