The Moderating Role of Insurance Penetration on the relationship between Firm Specific Factors and Non-Life Insurance Performance

This study investigates how insurance penetration moderates the link between firm-specific factors and the performance of non-life insurance firms, measured here in terms of liquidity and solvency. The insurance penetration effectively alters the relationship as evident from the empirical findings. The p-values for the analyses were all 0.05 which shows a significance. The coefficients for claims ratio, reinsurance ratio, ownership structure, total premium, loss ratio, and tangibility are all positive, meaning that an increase in any of these factors will enhance non-life insurance performance. On the other hand, performance is impacted negatively by insurance penetration, financial structure, management efficiency, underwriting risk and asset growth. The study of insurance penetration (which is gross premium income divided by GDP), elite nations and efficiency of firm-specific factors are very important. Although important, penetration levels are still low in a number of economies, suggesting the need for strategies to expand reach. Increasing penetration can enhance financial resilience, aid in the sustained growth of the sector, and strengthen the overall contribution of insurance to economic development.