Impacts of Insurers’ Financial Insolvency on Non-Life Insurance Companies’ Profitability: Evidence from Bangladesh

A stable and healthy insurance industry plays a vital role in sustaining an economy resistant to economic shocks by providing efficient risk-transition mechanism. There is relative scarcity of research inspecting the impact insurers’ financial insolvency on profitability firms. Employing 2011–2019 panel data 16 non-life companies operating Bangladesh, this endeavors examine impacts measured return ratios, assets (ROA), equity (ROE). Fixed-effect regression outcome implies that has significant adverse influence companies’ profitability. Further findings indicate leverage, technical provision, age, inflation have noteworthy The outcomes are greater significance for policymakers tackling formulating policies boost growth In addition, study aims serve as benchmark other countries’ industries emulate recovery strategies from insolvency.