%0 Journal Article
%A Moreno, Ignacio
%A Parrado-Martínez, Purificación
%A Trujillo-Ponce, Antonio
%T Economic crisis and determinants of solvency in the insurance sector: new evidence from Spain
%D 2020
%U https://hdl.handle.net/10433/22256
%X This paper analyzes the factors that determine the solvency of the insurance companies operating in Spain. The selected time span, from 2008 to 2015, encompasses a period of economic instability characterized by record low interest rates and low or even negative economic growth. Using a dynamic panel data model, we conclude that actual solvency margins are positively related to profitability, underwriting risk, and a mutual-type organization but inversely related to size, reinsurance use, longer-tailed business, and life insurance specialization. We also find that less concentrated markets and the context of an economic crisis decrease solvency margins.
%K Insurance
%K Solvency
%K Capitalization
%K Economic crisis
%K European financial system
%~