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 2005-2012. 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 pronounced for mutual insurance companies compared to stock insurers.