Financial Services Employee Engagement and Attitude Toward Artificial Intelligence: Evidence From Sri Lanka
Key finding of the study
The study concluded that capital adequacy, earnings and profitability, reinsurance, and actuaries are important predictors of financial performance for general insurers.
Authors
Vithiyalani Muthusamy, Sabaragamuwa University of Sri Lanka
Narayanage Jayantha Dewasiri, Sabaragamuwa University of Sri Lanka
KM Rajeewa Chanaka Lankanatha, Sabaragamuwa University of Sri Lanka
WAID Wijerathna, Sabaragamuwa University of Sri Lanka
Kiran Sood, Chitkara University, India
Simon Grima, University of Malta
Summary
The study explores the impact of the general insurance industry’s financial soundness on Sri Lanka’s financial performance by using the CARAMELS approach for seven years (2011–2019) and using secondary data. The study utilised panel data regression analysis. Return on Asset was used as the proxy of financial performance while the 10 dimensions were employed. The best-fitted model is the fixed effect model (FEM), which indicates capital adequacy ratio (CAR) and profitability ratio has a positive impact and that the retention ratio (RR), claims ratio, and expenses ratio harm financial performance in the general insurance sector. The study concluded that capital adequacy, earnings and profitability, reinsurance, and actuaries are important predictors of financial performance for general insurers. The findings help the regulator and general insurers set better performance targets and enable insurance company managers to allocate capital more efficiently.
Published in
Book titled “Digital Transformation, Strategic Resilience, Cyber Security and Risk Management” by Emerald Publishing
Link to the article