EconPapers    
Economics at your fingertips  
 

Business environment, political risk, governance, Shariah compliance and efficiency in insurance companies in the MENA region

Ali Shaddady ()
Additional contact information
Ali Shaddady: King Abdulaziz University

The Geneva Papers on Risk and Insurance - Issues and Practice, 2022, vol. 47, issue 4, No 5, 904 pages

Abstract: Abstract Widespread political and economic changes over the past several decades have influenced MENA insurance firms’ business environment fundamentally. This study investigates the influence of business environment, political risk, governance and Shariah compliance on efficiency in the insurance market from 2007 to 2017 using unbalanced panel data from 125 listed insurance firms across MENA countries. The study emphasises that a less favourable business environment exerts pressure on insurance firms and also identified an improvement in efficiency over the sample period, which may be attributed to the role played by challenging business conditions in increasing efficiency. Further, the results showed that variability in general economic conditions and influence of governance indicators explain efficiency, while solvency has a multifaceted effect on efficiency. Finally, the study found that Islamic insurance’s relative failure to enhance efficiency may be attributable to its failure to establish a distinct identity or draw a clear line between its mode of operation and that of conventional insurance, as well as the issue of customer confidence. Overall, the study emphasises the importance of controlling business environmental conditions in cross-country efficiency studies.

Keywords: Business environment; Efficiency; MENA insurance; Political risk; DEA-SFA; Quantile (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1057/s41288-021-00232-8 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:gpprii:v:47:y:2022:i:4:d:10.1057_s41288-021-00232-8

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/41288/PS2

DOI: 10.1057/s41288-021-00232-8

Access Statistics for this article

The Geneva Papers on Risk and Insurance - Issues and Practice is currently edited by Christophe Courbage

More articles in The Geneva Papers on Risk and Insurance - Issues and Practice from Palgrave Macmillan, The Geneva Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2022-10-08
Handle: RePEc:pal:gpprii:v:47:y:2022:i:4:d:10.1057_s41288-021-00232-8