The Impact of the Macroeconomic Environment on Insurance Companies
|Author:||Mgr. Lenka Čepeláková|
|Year:||2015 - summer|
|Leaders:|| doc. PhDr. Ing. Ing. Petr Jakubík Ph.D. Ph.D.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||This thesis assesses the impact of economic, institutional and demographic
factors on the life and non-life gross written premiums of insurance companies.
A dynamic panel data regression using the system generalized method of moments
is applied on data of 29 European countries collected by EIOPA covering
the period from 2005 to 2013. The results reveal that economic and institutional
factors drive both life and non-life insurance industry. On the other hand,
we cannot confirm that demographic factors are significant determinants of
the growth in GWPs. Subsequently, the hypothesis that there are substantial
cross-countries differences among the importance of different macroeconomic
determinants on the insurance sector development is explored and confirmed.
This work shines new light on the development of the quantitative macroprudential
framework used to determine different economic scenarios affecting
insurance companies’ balance sheets. Moreover, a broader set of panel data and
more variables explaining the growth in insurance sector bring new contributions
to the current discussion in academic literature