Replication Data for: Solvency Dynamics and Technical Risk in the Ecuadorian Insurance Market (2015-2025)
Description
This repository contains the financial and actuarial panel data of the Ecuadorian insurance market (2015-2025), alongside the R programming script required to fully replicate the results, tables, and high-resolution figures presented in the associated research article. The repository consists of two main components: Dataset: An anonymized panel dataset containing the accounting identities and operational metrics of insurance companies. Key variables include Net Premium, Incurred Losses, Acquisition Costs, Administrative Expenses, and Equity. These are used to calculate the foundational metrics of the study: The Combined Ratio and the Solvency Ratio. Replication Script (R): A comprehensive code script that executes the complete analytical pipeline. The script includes: Data wrangling and actuarial ratio calculations. Econometric diagnostic testing (Jarque-Bera, Breusch-Pagan, Hausman). Twoways Fixed Effects panel data modeling with clustered standard errors. Robustness checks using Leave-One-Out (LOO) cross-validation to assess outlier sensitivity. Monte Carlo stochastic simulations to calculate the 99.5% Value at Risk (VaR) and analyze tail risk scenarios for different insurance portfolios. Software requirements: R environment with standard econometric and visualization libraries (plm, ggplot2, lmtest, tseries, sandwich).