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The Impact of Macroeconomic Variables on the Financial Solvency of the Country's Insurance Industry with the Panel-VAR Model
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Elnaz Hasani Parsa1   , Meysam Mosae2 , Mohsen Mehrara3 |
1- phd student, University of Tehran (Responsible author) , elnazparsa.1368@gmail.com
2- Professor at Tehran University
3- Professor of the Faculty of Economics, University of Tehran |
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Abstract: (188 Views) |
The insurance market is considered one of the most important financial markets in any country, and its prosperity plays a significant role in the growth and development of any country. In addition, the bankruptcy of insurance companies can have much more destructive economic effects on the customers of this industry and on society compared to the bankruptcy of other companies; therefore, monitoring the insurance market is important and necessary. Achieving economic development requires tools, the most important of which are the dynamics, evolution, and development of financial markets, including the money market, capital, and the insurance industry. Due to the nature of their activities, insurance companies are important channels of savings and, as a result, important and pivotal financial institutions. They help in providing and allocating capital and helping to finance economic units. The aim of this article was to investigate the effects of shocks of macroeconomic variables on the financial solvency of insurance in Iran. For this purpose, statistical information for the period 1380-1402 has been used based on the frequency of annual data. The approach used in this paper was the Panel Vector Autoregression Model (Panel VAR). Based on the results obtained, it can be stated that the growth in the inflation rate and exchange rate led to a decrease in the financial solvency of the insured industry and the improvement in economic growth led to an increase in the financial solvency of the insurance industry.
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Article number: 20 |
| Keywords: Financial solvency, insurance industry, exchange rate, inflation rate, panel vector autoregression model. |
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Full-Text [PDF 880 kb]
(42 Downloads)
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Article type: Research |
Subject:
Special
Received: 2023/04/24 | Accepted: 2023/07/20 | Published: 2023/10/2
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