Researchers at Begum Rokeya University Publish New Study Findings on Finance (Impacts of Insurers’ Financial Insolvency on Non-Life Insurance Companies’ Profitability: Evidence from Bangladesh): Business – Finance

Health Policy and Law Daily

2022 OCT 10 (NewsRx) -- By a News Reporter-Staff News Editor at Health Policy and Law Daily -- Investigators publish new report on finance. According to news reporting out of Rangpur, Bangladesh, by NewsRx editors, research stated, “A stable and healthy insurance industry plays a vital role in sustaining an economy resistant to economic shocks by providing an efficient risk-transition mechanism.”

The news correspondents obtained a quote from the research from Begum Rokeya University: “There is a relative scarcity of research inspecting the impact of insurers’ financial insolvency on the profitability of insurance firms. Employing 2011-2019 panel data of 16 non-life insurance companies operating in Bangladesh, this research endeavors to examine the impacts of insurers’ financial insolvency on the profitability of insurance companies measured by return ratios, return on assets (ROA), and return on equity (ROE). Fixed-effect regression outcome implies that insurers’ financial insolvency has a significant adverse influence on non-life insurance companies’ profitability. Further findings indicate that financial leverage, technical provision, age, and inflation have a noteworthy adverse influence on profitability. The outcomes of this research are of greater significance for policymakers in tackling insolvency and formulating policies to boost the growth of insurance profitability.”

According to the news reporters, the research concluded: “In addition, this study aims to serve as a benchmark for other countries’ insurance industries to emulate recovery strategies from financial insolvency.”

For more information on this research see: Impacts of Insurers’ Financial Insolvency on Non-Life Insurance Companies’ Profitability: Evidence from Bangladesh. International Journal of Financial Studies, 2022,10(80):80. (International Journal of Financial Studies - http://www.mdpi.com/journal/ijfs). The publisher for International Journal of Financial Studies is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/ijfs10030080.

Our news editors report that more information may be obtained by contacting Md. Nur Alam Siddik, Department of Finance and Banking, Begum Rokeya University, Rangpur 5404, Bangladesh. Additional authors for this research include Md. Emran Hosen, Md. Firoze Miah, Sajal Kabiraj, Shanmugan Joghee, Swamynathan Ramakrishnan.