ABSTRACT
The research examines the effects of regulatory announcements on insurance firms' financial success using statistical analysis. It investigates how regulatory changes influence industry outcomes, focusing on factors like leverage, inflation, firm size, and age.
The findings showed divergent influences of inflation on financial success across periods. Between 2010-2016, inflation significantly reduced profitability, implying difficulties maintaining stability. From 2017-2022, inflation continued to positively affect profitability, but the relationship was not statistically significant, suggesting inflation's role fluctuated over time.
The study emphasizes the importance of clear communication and cooperation between insurance firms, regulators, industry organizations, and stakeholders to handle regulatory changes effectively and create positive outcomes. It recommends investigating the influence of regulatory announcements on insurance firms across nations and regulatory systems. This can help recognize widespread patterns, successful strategies, and valuable insights by exploring differences in regulatory structures, market conditions, and institutional contexts.
