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Financial Stability of the Czech Insurance Companies

Author

Listed:
  • Lenka PÅ™eÄ ková

    (Silesian University in Opava, School of Business Administration in Karviná, Department of Finance and Accounting)

  • Iveta PaleÄ ková

    (Silesian University in Opava, School of Business Administration in Karviná, Department of Finance and Accounting)

Abstract

Financial stability has become an important topic, especially in recent years. However, there is no consistent approach for measuring the financial stability of insurance companies. The aim of this paper is to construct the summarized financial stability index for the insurance companies and applied this index on the Czech insurance companies. We construct and applied the financial stability index separately for insurance companies that predominantly provide life insurance and non-life insurance. The financial stability index focuses on five areas. The results show that insurance companies specialised in a particular non-life insurance product are more financially stable. The research suggests that the evolution of insurance companies has been influenced by organisational changes and economic changes. During the period 2004 – 2019, the examined insurance companies did not show any problems in terms of financial stability.

Suggested Citation

  • Lenka PÅ™eÄ ková & Iveta PaleÄ ková, 2023. "Financial Stability of the Czech Insurance Companies," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 71(1), pages 65-86, January.
    • Handle: RePEc:sav:journl:v:71:y:2023:i:1:p:65-86
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    References listed on IDEAS

    as
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    2. Michal Dvorak & Marcela Gronychova & Vaclav Hausenblas & Zlatuse Komarkova, 2016. "Could the Czech Insurance Sector Be a Source of Systemic Risk?," Occasional Publications - Chapters in Edited Volumes, in: CNB Financial Stability Report 2015/2016, chapter 0, pages 116-126, Czech National Bank.
    3. Terence M. Yhip & Bijan M. D. Alagheband, 2020. "Statistical Methods of Predicting Country Debt Crisis," Springer Books, in: The Practice of Lending, chapter 9, pages 383-418, Springer.
    4. Unido, 2020. "World Statistics on Mining and Utilities 2020," Books, Edward Elgar Publishing, number 20171.
    5. W. Jean Kwon & Leigh Wolfrom, 2016. "Analytical tools for the insurance market and macro-prudential surveillance," OECD Journal: Financial Market Trends, OECD Publishing, vol. 2016(1), pages 1-47.
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    More about this item

    Keywords

    financial stability of insurance company; non-life insurance; life insurance; summary index; market share;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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