Factors Influencing Underwriting Performance of the Life and Non-Life Insurance Markets in South Africa
Exploring for Complementarities, Nonlinearities, and Thresholds
Bibliographic Data
| ID | 21737619 |
|---|---|
| Authors | Sylvester Senyo Horvey (0000-0002-7801-3149, University of the Witwatersrand, corresponding author), Jones Odei‐Mensah (0000-0002-7086-0298, University of the Witwatersrand) |
| Year | 2025 |
| Volume | 26 |
| Issue | 1 |
| Pages | 164-192 |
| Publication date | 2025-01-02 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of African Business (JOURNAL) |
| Journal identifiers | ISSN: 1522-8916 • E-ISSN: 1522-9076 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/15228916.2024.2348435 |
| OpenAlex | W4396698527 |
| Language | EN |
| Citations received | 1 |
| References cited | 51 |
Underwriting is crucial for insurers’ performance and sustainability, yet empirical evidence on factors influencing its performance has received limited attention. Therefore, this study investigates this phenomenon considering South Africa’s life and non-life insurance sectors between 2013–2019. Using the generalized method of moments and the bootstrap quantile regression techniques for analysis, the findings show that insurance size, market share, and investment income significantly and positively impact underwriting performance. However, premium growth weakens the underwriting performance of both sectors. Also, non-life insurance shows a positive relationship for reinsurance, while life insurers present an inverse relationship. Underwriting risk negatively impacts non-life performance across quantiles, while life insurer risk was negative in higher quantiles. More so, initial solvency levels weaken underwriting performance, while extreme increase improves it, implying a direct U-shaped relationship. Hence, highly solvent insurers are more likely to succeed in underwriting operations. Additionally, market share complements return on assets in promoting underwriting performance. Policy recommendations are discussed
Actuarial science · Business · Economics · Life insurance · Underwriting · finance, banking, and market dynamics · Insurance and Financial Risk Management · Insurance, Mortality, Demography, Risk Management
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| Unique citing works | 1 |
|---|---|
| Citations per year | 1 |
| Citation span | 2025 - 2025 (1) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 1 |