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Research Paper | Economics & Finance | Morocco | Volume 10 Issue 4, April 2021 | Popularity: 6.3 / 10

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Capital and Risk from the Perspective of Solvency Regulation of Moroccan Insurance Companies: Dynamic Estimation by Simultaneous Equations with Panel Data

Lakhdar Karima, Benbachir Saad

Abstract: This research attempts to answer two questions: Has capital and risk management in Moroccan insurance companies malfunctioned over the past ten years. In addition, Could the new regulatory measures significantly improve the management of capital and risk and especially that of underwriting in non-life? The econometric methodology that we have adapted is a comparison between the two regulations in a logic of panel data based on the partial equilibrium model with simultaneous equations concerning four Moroccan insurance companies over the period 2010-2018 estimated by the generalized moments estimator. The results of the study indicate the importance of capital and risk in the determination of insurance solvency while taking into account the effect of different exogenous variables incorporated in the determination of capital and risk.

Keywords: Solvency, dynamic panel, regulation, partial adjustment, generalized moment estimator

Edition: Volume 10 Issue 4, April 2021

Pages: 355 - 367

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