13th Students’ Research Symposium 2023/2024
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/29096
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Item The Determinants of the Demand for Fire Reinsurance in Sri Lankan General Insurance Market(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Fernando, P. Y. I.; Sudasinghe, S. L.Introduction: The assistance of an emphasis on financial indicators including return on total assets, growth in gross written premiums, underwriting risk, solvency margin, and financial leverage reinsurance ratio, this study examines the factors that influence the demand for fire reinsurance in the Sri Lankan general insurance market. Methodology: The general insurance market in Sri Lanka was the study's target audience. All secondary data used in this study comes from the annual reports of general insurance companies and the IRCSL between 2015 and 2022. The study employs a quantitative research approach with deductive research logic. Statistical tests like descriptive statistics, diagnostic tests like correlation, heteroscedasticity, serial autocorrelation, cross-sectional dependence, and regression analysis were among the statistical tests performed on the data using STATA software. Findings: The findings of the study highlighted that return on total assets, growth of gross written premium, and solvency margin are the key determinants of the demand for fire reinsurance in the Sri Lankan general insurance market. Financial leverage and underwriting risk have an insignificant relationship with the demand for reinsurance in the fire sector. Conclusions: The study comes to the conclusion that maximizing reinsurance methods and structure for Sri Lankan general insurance companies requires careful management of return on total assets, growth of gross written premiums, and the maintenance of strong solvency margins.