Risk Management and Financial Performance of Insurance Companies in Jordan

Abstract

This study investigates the effect of risk management methods employed by Jordanian insurance firms on their financial performance. We employed an empirical study design. The study sample comprises twenty insurance companies registered in Jordan. The research utilized both published reports and financial documents maintained by IRA for seven years. Using SPSS, the quantitative data was evaluated. The mean, standard deviation (SD), and variance analysis evaluated the data. According to the report, most Jordanian insurance businesses have embraced risk management methods that have a significant impact on their financial performance. In addition, it was discovered that the adoption of risk management strategies correlates positively with financial performance. The study suggests that insurance companies in Jordan adopt alternative risk management approaches to derive higher benefits from their risk management initiatives.