IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v39y2018i7p805-813.html
   My bibliography  Save this article

Loss reserving behaviour in insurance markets: Evidence from Mauritius

Author

Listed:
  • Abdul Latif Alhassan

Abstract

This study examines determinants of loss reserves among a sample of 14 general insurance companies in Mauritius from 2008 to 2015. The paper documents evidence that on average, technical reserves account for 45.41% of total assets, made of 19.79% in unearned premiums and 25.62% in outstanding claims. Using panel regression techniques, the findings suggest that general insurers manipulate their earnings through reserve provisions to smooth income and tax considerations. In addition, underwriting risk and reinsurance increases technical reserves, whereas market concentration induces high provisioning for outstanding claims. Policy recommendations for industry regulations are discussed.

Suggested Citation

  • Abdul Latif Alhassan, 2018. "Loss reserving behaviour in insurance markets: Evidence from Mauritius," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 39(7), pages 805-813, October.
    • Handle: RePEc:wly:mgtdec:v:39:y:2018:i:7:p:805-813
    DOI: 10.1002/mde.2963
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.2963
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.2963?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jan Hájek, 2020. "Effect of tax deductibility on technical reserves recognized by Czech and Slovak insurance companies [Vliv daňové uznatelnosti na výši technických rezerv tvořených českými a slovenskými pojišťovnam," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2020(3-4).
    2. Jan Hájek, 2020. "Effect of tax deductibility on technical reserves recognized by Czech and Slovak insurance companies [Vliv daňové uznatelnosti na výši technických rezerv tvořených českými a slovenskými pojišťovnam," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2020(3-4), pages 25-37.
    3. Alhassan, Abdul Latif, 2023. "Financial Health of Medical Schemes in South Africa," Finance Research Letters, Elsevier, vol. 51(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:39:y:2018:i:7:p:805-813. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.