A Effect of Macroeconomic Factors on the Insolvencies of the Life-Health Insurance Industry in Taiwan

• Main Authors: Hui-Yan Chen, 陳惠燕
• Other Authors: Pen-Tui Lai
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/5wky5n

碩士 === 朝陽科技大學 === 保險金融管理系碩士班 === 93 === The purpose of this study is to analyze the effect of macroeconomic factors on the insolvencies of the life-health insurance industry in Taiwan. The financial security of insurance industry involves public benefits; and it is also quite important for policy-holders, investors, and even insurance company. However, most of the prior studies which related to the insolvency of the life-health insurance industry in Taiwan focus on financial ratio and firm-specific characteristics in insolvency risk, but seldom took the macroeconomic factors into consideration. For this reason, the empirical analysis of this study is based on yearly data from 1994 to 2002, and the macroeconomic factors are interest rate, consumer price Index (CPI), per capita income (DPI), economic growth rate, competition and exchange rate. Therefore, the purpose is to attempt to explore the relationship between macroeconomic factors and insolvency of the life-health insurance industry in Taiwan. Results indicate that insolvencies are positively related to the increases of interest rates, economic growth rate, competition, exchange rate; whereas which negatively related to consumer price Index (CPI), per capita income (DPI). In conclusion, the most important influential macroeconomic factors are interest rate, consumer price Index (CPI), and economic growth rate.