Title: Health public crisis impact on non-life insurance: the case of COVID-19

Authors: Marta Costa; Rui Gonçalves; Renato Lopes da Costa; Leandro Pereira; Álvaro Dias

Addresses: NOVA IMS, Campus de Campolide, 1070-312 Lisboa, Portugal ' LabEST, Piaget, Avenida Jorge Peixinho, No. 30, Quinta da Arreinela, 2805-059 Almada, Portugal ' Business Research Unit – BRU-IUL, ISCTE – Instituto Universitário de Lisboa, Lisbon, Portugal ' BRU – Business Research Unit, ISCTE – Instituto Universitário de Lisboa, Lisbon, Portugal ' Universidade Lusófona de Humanidades e Tecnologias, ISCTE – Instituto Universitário de Lisboa, Lisbon, Portugal

Abstract: The insurance industry plays a crucial role in developing a country's economy, thus becoming one of the main focuses when studying the possible impacts of the current public health crisis. Accordingly, the main objective of this study is to investigate the COVID-19 impact on non-life insurance profitability of the Portuguese insurance sector. This study also intends to assess the explaining factors of insurance companies' profitability on the period between 2004/2020. The methodology implemented was a multiple linear regression, using a panel data model with random effects. The sample consists of a total of 238 observations from 14 non-life insurers over 17 years. The results revealed that COVID-19 positively impacted the profitability of the insurance companies presented. However, this impact was only significant on the return on assets. Furthermore, the results showed an inverse and meaningful relationship between the profitability ratios and the variables leverage and loss ratio.

Keywords: COVID-19; insurance sector; panel data; profitability.

DOI: 10.1504/IJEH.2022.126570

International Journal of Electronic Healthcare, 2022 Vol.12 No.4, pp.338 - 363

Received: 20 Nov 2021
Accepted: 25 May 2022
Published online: 28 Oct 2022 *

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