Actuarial accounting and insurance industries performance: The context of the emerging market

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Abstract

The purpose of this research is to provide an accounting perspective on the value of actuarial science in the insurance industry, investigate how it contributes as an actuarial accountant to the Jordanian insurance industry, and what kind of value it may bring to the table, in particular. The regional economy is plagued by erratic swings in the economy, which put a pall on financial security and its impact on productivity (Vyas, 2019). Despite the small number of actuaries working in the insurance industry in Jordan. In order to achieve the aim of the study, the author used a questionnaire surveying a cross-section of professionals from the fields of insurance practice, academia, actuarial science, financial analysis, and auditing. The sample of this study is 291. The study found that these professionals are vital to the industry, as the risks associated with economic volatility and financial crises necessitate the use of actuarial accounting techniques, and as such, they play a crucial role in bolstering the quality of financial reporting. According to the findings, actuarial accountants and actuarial science play a crucial role in the banking industry by helping institutions weather economic storms and financial crises through the use of actuarial methodologies.

Keywords: Insurance Sector, Financial Reports, Actuarial Accounting, Actuarial Science, Jordan

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G2, M2, M4

Received: 14.10.2023
Accepted: 30.04.2024
Published online: 02.05.2024

How to cite this paper: Shahwan, Y. (2024). Actuarial accounting and insurance industries performance: The context of the emerging market. Journal of Governance & Regulation, 13(2), 202–209. https://doi.org/10.22495/jgrv13i2art20