The Impact of Solvency Standards on Insurance Penetration "An Applied Study on the Insurance Sector in Libya

Abstract

The study mainly aims  to clarify the impact of solvency standards on the Penetration of insurance in the Libyan insurance sector by knowing the  impact of a set of solvency standards and by using the descriptive and inferential approach in collecting and analyzing data for the financial statements of the insurance sector in Libya  during the period  from 2014 to 2020 and by using the method of estimating the least squares to test the sub-hypotheses, and the correlation matrix to test the main hypothesis. The study also concluded that  there is a statistically significant moral impact of the solvency standards on the Penetration of the Libyan insurance sector. There is also a statistically significant effect of the solvency rate on the gross premiums, the liquidity rate (the rate of technical provisions to liquid assets), and the structural rate (the rate of technical provisions to equity) on the Penetration of insurance in Libya, while there is no statistically significant effect on the retention rate and adequacy of technical provisions and the solvency rate on the net premium on the Penetration of Libyan insurance. One of the most important recommendations of the search is the need to urge researchers to provide more research on the Penetration of insurance and its impact on other variable