The Role of Financial Stability of Insurance Companies in Economic Development
DOI:
https://doi.org/10.31150/ajebm.v7i11.3066Keywords:
Financial stability, Insurance market, Economy, Finance, Investment, Development of economyAbstract
Financial stability represents the capacity of enterprises to effectively manage financial resources, ensuring continuous production and service delivery. This study explores the insurance system as a critical business sector where financial stability plays a pivotal role, highlighting its dual function as a means for securing operations and attracting investments into the national economy. Despite the significant role of insurance companies in fostering economic development, limited research exists on their contribution to financial stability and investment mobilization. This research aims to analyze the interplay between financial stability and the insurance sector's investment potential. Using a mixed-method approach, the study examines financial indicators and industry practices. The findings reveal that stable financial management in insurance companies enhances investment flows and supports sustainable economic growth. The implications underscore the importance of robust financial policies and innovative strategies for strengthening the role of the insurance sector in economic development.
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