Spanish insurers face financial crisis risk due to low solvency ratios.
The study looked at factors influencing the financial health of Spanish insurance companies from 2005 to 2012. They found that the level of solvency in these companies was affected by efficiency, reinsurance use, premium growth, and whether the company was a stock insurer. These factors were consistent during both crisis and non-crisis periods. Interestingly, the impact of efficiency on solvency was more significant for mutual insurance companies compared to stock insurers.