An Analysis of Factors Affecting the Performance of Insurance Companies in Zimbabwe

The study sought to examine factors affecting the performance of insurance
companies in Zimbabwe. We utilized secondary data from twenty short-term
insurance companies. The data was for the period from 2010 to 2014. We used
factor analysis and multiple linear regression models to determine the factors
affecting performance and identifying their impact. Our findings revealed that
expense ratio, claims ratio and the size of a company significantly affect insurance
companies’ performance negatively. Whilst leverage and liquidity affect
performance positively. We recommend that insurance companies should
introduce mechanisms that reduces operational costs such as automated systems.