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Journals / Bankacılık ve Finansal Araştırmalar Dergisi / 2023 / Cilt: 10 Sayı: 2

Analysis of the Financial Soundness of Non-Life Insurance Companies in Türkiye with the CARAMELS Model

Türkiye’de Hayat Dışı Sigorta Şirketlerinin Finansal Sağlamlığının CARAMELS Modeli ile Analizi

Merve EMİRCAN
Emine Öner KAYA
Pages
143–160
Publication Date
2023-07-17
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

This trend is especially observed in the financial soundness indicators calculated for the analysis of capital adequacy, earnings and profitability and liquidity.

📌 3 Key Takeaways

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Objective & Hypothesis:The CARAMELS model is a ratio-based model that evaluates the financial stability and soundness of insurance companies based on financial soundness indicators related to capital adequacy (C), asset quality (A), reinsurance (R) and actuarial issues (A), management soundness (M), earnings and profitability (E), liquidity (L), and sensitivity to market risk (S).
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Key Findings & Data:For this purpose, 15 financial soundness indicators were determined within the CARAMELS framework, and the financial soundness indicators of 32 non-life insurance companies operating in Türkiye and the nonlife insurance sector as a whole were calculated for the five-year period between 2018-2022.
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Conclusion & Impact:This trend is especially observed in the financial soundness indicators calculated for the analysis of capital adequacy, earnings and profitability and liquidity.
🔬Design:Modeling & Simulation
📍Scope:2018-2022 Verileri
⚙️Variables:Finansal Sağlamlık · CARAMELS · Hayat Dışı Sigorta Şirketleri

Abstract

The CARAMELS model is a ratio-based model that evaluates the financial stability and soundness of insurance companies based on financial soundness indicators related to capital adequacy (C), asset quality (A), reinsurance (R) and actuarial issues (A), management soundness (M), earnings and profitability (E), liquidity (L), and sensitivity to market risk (S). The aim of this study is to analyze the financial soundness of non-life insurance companies operating in Türkiye based on the CARAMELS framework. For this purpose, 15 financial soundness indicators were determined within the CARAMELS framework, and the financial soundness indicators of 32 non-life insurance companies operating in Türkiye and the nonlife insurance sector as a whole were calculated for the five-year period between 2018-2022. The findings show that there is a downward trend in the financial soundness indicators of the sector in the period after 2020, especially in 2022. This trend is especially observed in the financial soundness indicators calculated for the analysis of capital adequacy, earnings and profitability and liquidity.

Özet

CARAMELS modeli, sigorta şirketlerinin finansal istikrar ve sağlamlığını sermaye yeterliliği (C), varlık kalitesi (A), reasürans (R) ve aktüeryal denge (A), yönetimin sağlamlığı (M), kazanç ve kârlılık (E), likidite (L) ve piyasa riskine duyarlılık (S) kategorilerine ilişkin finansal sağlamlık göstergelerine dayalı olarak değerlendiren bir modeldir. Bu çalışmanın amacı, Türkiye’de faaliyet gösteren hayat dışı sigorta şirketlerinin finansal sağlamlığının CARAMELS çerçevesine dayalı olarak analiz edilmesidir. Bu amaç doğrultusunda, 2018-2022 yılları arasındaki beş yıllık dönemde Türkiye’de faaliyet gösteren 32 hayat dışı sigorta şirketinin ve bir bütün olarak hayat dışı sigorta sektörünün CARAMELS çerçevesinde belirlenen 15 adet finansal sağlamlık göstergesi hesaplanmıştır. Elde edilen bulgular, 2020 yılından sonraki dönemde, özellikle 2022 yılında, sektöre ilişkin finansal sağlamlık göstergelerinde bir gerileme eğilimi olduğunu göstermektedir. Bu eğilim özellikle sermaye yeterliliğinin, kazanç ile kârlılığın ve likiditenin analizi için hesaplanan finansal sağlamlık göstergelerinde gözlenmektedir.

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Cite This Article

EMİRCAN, M., KAYA, E. Ö. (2023). Analysis of the Financial Soundness of Non-Life Insurance Companies in Türkiye with the CARAMELS Model. Bankacılık ve Finansal Araştırmalar Dergisi, Cilt: 10 Sayı: 2, 143–160. https://ajindex.com/articles/953689

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