Abstract: Insurance Companies provide coverage in the form of compensation resulting from loss, damages, injury, treatment or hardship in exchange for premium payments. Insurance as an industry involves pooling funds from many insured entities (known as exposures) to pay for the losses that some may incur. Insurance as a financial intermediary is a commercial enterprise and a major part of the financial services industry. The Growth of insurance companies usually measured through certain Indicators such as the increment percentage in: net profit, total premium written, shareholders equity, total assets, net underwriting income, and net investment. Insurance industry established in UAE at early 70th of the last century (the first insurance company was El Sharjah Company which established at 1970). Now (after almost 40 years) there are more than sixty insurance companies playing a crucial role in both the UAE financial market and society. In this article the net profit and total premium written growth indicators will be investigated for a selected group of insurance companies in UAE that established before 2000. Using descriptive statistical tools, graphical presentations and control charts, Pareto Analysis which is a technique used for decision making based on the Pareto Principle. Investigation of interrelationship between the two factors will be through the calculation of the correlation coefficient and conduct a regression analysis between the profit and the premium written to analyze the expected interrelationship between them to determine to which degree the premium written affect the profit.
Keywords: Insurance companies, Growth indicators, Pareto Analysis, premium payments, performance analysis, financial performance.
Title: Investigating the Interrelationship between Profit and Premium in the Insurance Companies: Case Study
Author: Doaa Wafik, Assem Tharwat
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
