Use of technical indicators to analyses insurance portfolio risks Libya Insurance Company Case Study

Abstract

This study  aimed to  identify  the role of technical indicators (retention rate and absorptive capacity ratio) in analysing and assessing the risk of the insurance portfolio, with a view to reaching a balanced insurance portfolio . Analytical descriptive approach and methods were used as method for results; By analysing Libya Insurance Company's financial data (as sample of  study) for the 2010-2022

The  findings of the study were found the mean of  retention rate of the company was below the acceptable range, which caused the company's inability to take the appropriate reinsurance decision, and the company exploited very little of its capacity, namely, (6%),  this study  recommended that more effort be made to benefit more from its absorptive capacity, bearing in mind that capacity is the maximum amount that the insurance company can subscribe to without jeopardizing the margin of financial appropriateness, and the need to adhere to solvency indicators within the acceptable limits depended on  recommended by the Insurance Supervision and Supervision Authority.

Keywords: insurance portfolio, retention limit rate, absorptive capacity, reinsurance risks, Libyan insurance market