Purpose:The objective of the article is to invistigate how market structure influenced the financial effectiveness of life insurance companies (Branch I). Design/Methodology/Approach: A critical review of literaturę is undertaken, contens of factors which influence financial effectiveness of insurance companies are analysed, and econometric methods are applied. A panel model is constructed and results of its estimation are analysed. Findings: The research assumed the existence of a relationship between the share in the insurance market and the financial efficiency of life insurance companies. ROE (Return On Equity) was adopted as the dependent variable (explained feature) measuring the financial efficiency of insurance companies. The share in the insurance market, measured by gross written premium, was considered one of the explanatory variables. The results of model's estimation indicated that all independent variables are statistically significant and the signs are in accordance with theory and hypothesis. The main variable which influence the variability of ROE is share in the market measured by gross written premium. Practical Implications: The results may be taken advantage of life insurance companies. They indicate factors of financial effectiveness life insurance companies. Origiality/Value: The paper contains the authors' original research into a representative group of life insurace companies, that can be generalised to the entite population. The study will contribute to the developmet of theories concerning factors of the financial effectiveness of insurance companies.
Purpose:The aim of the article is to examine the impact of the business model on the financial efficiency of insurance companies. Design/Methodology/Approach: A critical review of literaturę is undertaken, contents of factors which influence business models of insurance companies are analysed, and econometric methods are applied. A panel model is constructed and results of its estimation are analysed. Insurance companies have been shared according to their business models into life insurance companies and non-life insurance companies. ROE (Return On Equity) was adopted as the dependent variable (explained feature) measuring the financial efficiency of insurance companies. The models explain efficiency of insurance companies measures by ROE as dependent on thirteen independent variables.
Findings: The research assumed the existence of a relationship between the business model of insurance companies and its financial efficiency. The results indicated that the variability of ROE is dependent by business model of insurance company. Factors of financial efficiency are different for life insurance companies and for non-life insurance companies.Practical Implications: The results may be taken advantage of insurance companies. They indicated factors of financial efficiency of insurance companies in sharing into life insurance companies and non-life insurance companies. Originality/Value: The paper contains the authors' original research into a representative group of insurance companies, which can be generalised to the entity population. The study will contribute to the development of theories concerning factors of the financial efficiency of insurance companies.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.