The impact of monetary policy on the financial employment operations of insurance companies

A reference to the case of Algeria

Abstract

We often neglect the impact of monetary policy on the insurance market, despite its importance and the magnitude of the effects it causes on the performance of insurance companies, especially on their financial employment operations, so that the efforts of actors in the insurance market are based on research into developments in the management of risks associated with terrorism, natural disasters, and technological risks, and on methods of pricing them and retention capabilities. With it. However, as a result of successive financial crises, there has become a trend towards paying more and more attention to the results and consequences of the various financial and monetary policies of the government and banks Central to the profitability and financial solvency of insurance and reinsurance companies. Although the impact of monetary policy, especially in the field of interest rates, remains limited on the rates of return on insurance companies’ assets in a way that affects their solvency, the acceleration of the decline in these rates and their continuation will affect the most important axes of their activity, which is based on their financial employment operations. This raises the need to study and analyze these effects. This study aims to understand and analyze the impact of monetary policy, especially what relates to interest rates, on the rates of return on financial investments of insurance companies, in an attempt to anticipate the most important challenges that insurance companies may face in this field and how to deal with them.