Credit risk modeling techniques for insurance

Credit risk modeling techniques for insurance | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Credit risk modeling techniques for insurance Samuel M Nuugulu, Monika Aupindi This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6196526/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract Insurance sector contributes significantly to any economy, it also carries inherent dangers. The proper management of credit risks is critical to the success of each insurance institution and other financial companies; consequently, if credit risks are not well managed, most organizations, particularly those whose main activities deal with day-to-day risk management, may fail. Kokobe (2016) stated that anticipating and evaluating credit risk and the chance of default of a firm entails identifying and analyzing risks, designing and executing risk-handling techniques, methodologies, and models in order to mitigate the impact of risk on the fim’s financial performance. The goal of this research is to learn about the best strategies for estimating credit risk in insurance. To investigate the link between risk management approaches and insurance company financial performance. To investigate the impact of credit risks on insurers and their benefits. As a result, this study will investigate the factors that influence credit risk application as well as the limits of current modeling procedures among insurers. Mathematics Subject Classification: 34A08, 65M06, 65N12, 35R11. Financial Mathematics Credit Risk Insurance Financial Performance Credit Benefits Full Text Additional Declarations The authors declare no competing interests. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-6196526","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":426750013,"identity":"ea17b0d5-5d60-4741-b19d-b445773dd09a","order_by":0,"name":"Samuel M Nuugulu","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAAt0lEQVRIiWNgGAWjYPACCwZ+UrVIMEg2kKzF4ACxauVn95hJfm2TSNx8I/fgpxsMd+QJajG4c8ZMWhaoZduNvGTpHIZnhgQdaCCRYyYtCdaSYwDUcpiRoBb5GVAtm2fkGP8GarEnqIXhRo6Z5Eeglg0g64BaEgk77EZasTXDOQnjGWfemFnnGBxOJsJhyRtv/iizke1vzzG+nVNx2Jaww4CAmQdhKTHqgYDxB5EKR8EoGAWjYIQCAKeYOiL4cf37AAAAAElFTkSuQmCC","orcid":"https://orcid.org/0000-0003-3966-5088","institution":"University of Namibia","correspondingAuthor":true,"prefix":"","firstName":"Samuel","middleName":"M","lastName":"Nuugulu","suffix":""},{"id":426753434,"identity":"1df52a0f-2c25-4ca7-8db8-9c57bffabe50","order_by":1,"name":"Monika Aupindi","email":"","orcid":"","institution":"University of Namibia","correspondingAuthor":false,"prefix":"","firstName":"Monika","middleName":"","lastName":"Aupindi","suffix":""}],"badges":[],"createdAt":"2025-03-10 14:36:36","currentVersionCode":1,"declarations":{"humanSubjects":false,"vertebrateSubjects":false,"conflictsOfInterestStatement":false,"humanSubjectEthicalGuidelines":false,"humanSubjectConsent":false,"humanSubjectClinicalTrial":false,"humanSubjectCaseReport":false,"vertebrateSubjectEthicalGuidelines":false},"doi":"10.21203/rs.3.rs-6196526/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-6196526/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":78320146,"identity":"f87921d7-4da3-43d6-ba5b-b6bc04cee7d1","added_by":"auto","created_at":"2025-03-12 04:54:13","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":652965,"visible":true,"origin":"","legend":"","description":"","filename":"Monika.pdf","url":"https://assets-eu.researchsquare.com/files/rs-6196526/v1_covered_739b78aa-df34-4786-bfae-106aab8d0940.pdf"}],"financialInterests":"The authors declare no competing interests.","formattedTitle":"\u003cp\u003eCredit risk modeling techniques for insurance\u003c/p\u003e","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Credit Risk, Insurance, Financial Performance, Credit Benefits","lastPublishedDoi":"10.21203/rs.3.rs-6196526/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-6196526/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eInsurance sector contributes significantly to any economy, it also carries inherent dangers. 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