Volume 28 Number 3, 2023

An Investigation of the Economic Crisis and Financial Stability: Evidence from the Taiwanese Insurance Industry

Chen-Ying Lee
Department of Risk Management and Insurance, Shih Chien University, Taiwan. R.O.C
bean44019@gmail.com

ABSTRACT

This study aims to examine the impact of the economic crisis on the financial stability of property-liability (P-L) insurance industry in Taiwan, and further explores the determinants of financial stability in insurance. The results suggest that the impact of economic crisis is significant negative on the P-L insurer's financial stability, indicating economic crisis decreases insurers' financial stability. My results also show both firm-specific factors and macroeconomic factors play important role, including ROE, business concentration, loss ratio and insurance leverage are important determinant insurer financial stability system. In addition, the study also reveal that firm size has moderating effect on economic crisis between with financial stability. The results have practical implications for supervision and management of the solvency, and can provide reference for the establishment of early warning and stable financial system for P-L insurance companies in developing country.

JEL Classification: C23, G22, G33

Keywords: methodeconomic crisis, property-liability insurance, financial stability

Cite this article: 

Lee, C.-Y., 2023, An Investigation of the Economic Crisis and Financial Stability: Evidence from the Taiwanese Insurance Industry, International Journal of Business, 28(3), 005. https://doi.org/10.55802/IJB.028(3).005