Naslov
Digitalization as Determinant of Insurers' Profitability

Autori
Pavic Kramaric, Tomislava ; Miletic, Marko ; Pavic, Ivan

Vrsta, podvrsta i kategorija rada
Sažeci sa skupova, sažetak, znanstveni

Izvornik
Proceedings of The 5th International Conference on Opportunities and Challenges in Management, Economics and Accounting / - Berlin : Proceedings of The 5th International Conference on Opportunities and Challenges in Management, Economics and Accounting, 2019, 13-13

ISBN
978-609-485-021-9

Skup
The 5th International Conference on Opportunities and Challenges in Management, Economics and Accounting

Mjesto i datum
Berlin, Njemačka, 29.08.2019. - 31.08.2019

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
digitalization of insurers’ activities ; performance

Sažetak
The authors investigate the influence of digitalization on profitability of Croatian insurance companies in order to find out whether digitalization or higher investments in information and communication technologies(ICT) might be a determinant of insurers’ performance. Since financial reports of insurers lack the exact data on ICT, the authors have used a proxy of the balance sheet item other intangible assets which mostly relates to software the insurers use. Besides variable on digitalization which is calculated as natural logarithm of other intangible assets, other firm-specific and macroeconomic variables were used in the analysis as well. These include size, gross written premium growth, share of reinsurance, claims growth volatility, the premium to surplus ratio, market share of five largest insurance companies, share of gross written premium in GDP and GDP per capita growth. Empirical research is conducted using static panel analysis on the sample of insurance companies that operated in Croatia in the period 2013 – 2017. To test the presence of heteroscedasticity Breusch-Pagan test was employed in research. After finding proper static panel model robust standard errors were used in research. The results of static panel model reveal that GDP per capita growth has statistically significant and positive influence on profitability measured with return on assets (ROA).

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA