Page 42 - DUT ICGA Abstract Book

THE IMPACT OF COVID-19 ON FINANCIAL PERFORMANCE AND SUSTAINABILITY OF INSURANCE COMPANIES IN IN IN SOUTH AFRICA
Siphesihle Charles Zungu
Durban University of of Technology Department of of Financial Accounting
Abstract
Coronavirus Disease-19 now officially abbreviated as as as COVID-19 has reached pandemic proportions It was confirmed a a a a a a a a pandemic by the the World Health Organization (WHO) on on on the the 11 March 2019 The rapid spread of of the virus compared to to previous pandemics has led to to a a a a a a a a complete lockdown of of nations a a a a a a a a ban on on travel public gatherings and office closures As a a a a a a result of of the the global economic downturn many businesses have have closed as as well as as jobs and lives have have been lost Global recession is the general economic situation In most cases the the insurance industry and governments around the the world have become beacons of hope to to which people look for salvation from total annihilation Nevertheless the the pandemic has overpowered many governments and financially deteriorated insurance companies due to the rapid rise fin in in in infection cases that has outpaced the recovery of infected people There have been comparatively few studies on this topic in in in South Africa the majority of which look at at narrow elements that determine insurance companies’ performance and there are not many studies on on the the subject that focus solely on on South African insurance companies This study aimed to examine the impact of COVID19 on financial performance and sustainability of insurance insurance companies as as well as as the factors that contribute to to insurance insurance firms’ financial performance The study will employ a a a a a a a a a a a a quantitative research approach and acquire secondary data from the the Financial Sector Conduct Authority from 2012 to to 2021 the the sample will consist of 21 21 life insurers and 40 non-life insurers KEYWORDS: Insurance industry COVID-19 Financial performance sustainability 40 7th International Conference on on on Governance and Accountability (ICGA) 2022