Researchers from Stellenbosch University Report Recent Findings in Cogent Economics and Finance (Performance determinants of life insurers: A systematic review of the literature): Economics – Cogent Economics and Finance

NewsRx Policy and Law Daily

2023 OCT 31 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- Investigators publish new report on cogent economics and finance. According to news reporting from Western Cape, South Africa, by NewsRx journalists, research stated, “AbstractThe life insurance industry plays a crucial role in the economy as it serves as one of the channels through which countries mobilize long-term savings, promote the development of capital markets, foster efficient capital allocation, and substitute and complement government security programs. Therefore, the performance of this sector is imperative.”

The news correspondents obtained a quote from the research from Stellenbosch University: “Since the early 1990s, researchers have been paying particular attention to the performance of life insurance firms, with a specific emphasis on identifying the key determinants of their performance. The objective of this study is to synthesize the studies that have explored this topic. Using a systematic literature review approach, the study reviews 129 studies published between 1990 and 2021. The analysis reveals that the literature primarily examines factors such as size, organizational structure, capital composition, diversification, distribution systems, risk management practices, and reinsurance strategies as key firm-specific drivers of life insurer performance. Additionally, the study underscores the importance of competition and macroeconomic conditions as commonly discussed external determinants. While a clear relationship between performance and factors like firm size, organizational structure, and risk management practices is evident, the impact of other factors remains inconclusive.”

According to the news reporters, the research concluded: “One of the implications of this study is that policymakers should enact laws that promote competition in the insurance industry. The study also reveals several research gaps, including methodological gaps.”

For more information on this research see: Performance determinants of life insurers: A systematic review of the literature. Cogent Economics & Finance, 2023,11(2). (Cogent Economics & Finance - http://cogentoa.tandfonline.com/journal/oaef20). The publisher for Cogent Economics & Finance is Taylor & Francis Group.

A free version of this journal article is available at https://doi.org/10.1080/23322039.2023.2266915.

Our news editors report that more information may be obtained by contacting Tafadzwanashe Zinyoro, Stellenbosch Business School, Stellenbosch University, Bellville Park, Western Cape, South Africa. Additional authors for this research include Meshach Jesse Aziakpono.