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Resilience Analysis of the European Insurance Industry

Author

Listed:
  • Vintilă Alexandra

    (Bucharest University of Economic Studies, Romania)

  • Roman Mihai Daniel

    (Bucharest University of Economic Studies, Romania)

Abstract

The insurance market does not generate only a risk dispersion tool, but constitutes a complex system that contributes to the efficient and effective functioning of the economy. In order to guarantee the fundamental role of this market in sustainable economic growth, insurers must prove resilience in the face of risk and uncertainty generated by the complexity of the system of interdependencies in which they operate. The purpose of the article is to analyze the resilience of the European insurance market, its adaptability to changes and the recovery of delays caused by recent health (especially the COVID-19 pandemic). The data used include variables that define the European insurance system (such as gross written premiums, gross claims incurred, total technical expenses, total assets, total liabilities and number of entities) from EIOPA’s annual statistics from 2017 to2023. Analysis tools include cluster analysis to evaluate the dissimilarity and similarity of European Union countries. The resilience of the insurance industry to shocks was also analyzed from the perspective of financial performance by using a clusterization analysis in order to group countries based on Euclidean distance. The results indicate a grouping of countries in two clusters whose composition remained relatively stable to shocks.

Suggested Citation

  • Vintilă Alexandra & Roman Mihai Daniel, 2024. "Resilience Analysis of the European Insurance Industry," Journal of Social and Economic Statistics, Sciendo, vol. 13(2), pages 58-81.
    • Handle: RePEc:vrs:jsesro:v:13:y:2024:i:2:p:58-81:n:1004
    DOI: 10.2478/jses-2024-0009
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    References listed on IDEAS

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    More about this item

    Keywords

    resilience; European insurance market; unsupervised learning; clustering; uncertainty;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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