The Impact of Actuarial Standards on Risk Management in Yemeni Insurance Companies

Abstract

The study aimed to identify the impact of actuarial standards (statistical factors, economic and financial rules, actuarial modeling, and actuarial risks) on the risk management of Yemeni insurance companies across all dimensions. It also aimed to measure the level of implementation of actuarial standards in Yemeni insurance companies and evaluate risk management practices in the companies under study. The study applay the quantitative approach using a descriptive-analytical approach. A questionnaire was used to collect field data from the study population, consisting of thirteen companies—all companies registered with the Yemeni Insurance Federation, with the exception of companies specializing in health insurance was sample of 203 employees in senior and middle management positions in Yemeni insurance companies. The study results showed that the level of implementation of actuarial standards in the companies was average, with variations in the application of the various dimensions, with the "economic and financial rules" and "statistical factors" achieving the highest levels. It also demonstrated a statistically significant positive impact of actuarial standards on improving risk management, particularly in the areas of "statistical factors" and "economic and financial rules." However, weaknesses were noted in the application of actuarial modeling and actuarial risk. The study made several recommendations, including the need to enhance the application of less effective dimensions, such as actuarial modeling, and develop proactive plans to improve liquidity risk management. It also emphasized the importance of integrating regulatory and technical aspects to ensure companies' stability in a changing risk environment.