Insurance Companies Research Articles

Traumatic Brain Injury as an Invisible Disability: Institutional Barriers in Medical, Social and Financial Services in Finland

People who sustain traumatic brain injuries (TBIs) often experience unmet rehabilitation needs. The aim of our research was to explore how the invisible aspects of traumatic brain injury affect the experiences of survivors of TBI in accessing the necessary medical, social, and financial assistance. Using Giorgi’s descriptive phenomenological inquiry, we purposefully sampled 11 participants who had experienced TBI when aged 13–27 for interviews. The time since their injuries ranged from 7 to 37 years. Three key themes emerged: (1) lack of knowledge and guidance in medical services, (2) lack of social service assistance, and (3) battles with insurance companies. Our findings show that, due to the hidden nature of TBI-related disabilities and a general lack of societal knowledge about TBI outcomes, survivors face significant difficulties in accessing essential medical, social, and financial services. This study underscores the critical need to address the challenges faced by youth survivors of TBI, as their injuries occur during a pivotal developmental phase when they are developing psychosocial skills, pursuing education, and transitioning into the workforce. Delays or lack of proper medical, social, and financial support hinder rehabilitation and the successful reintegration of these youth into society.

CEO compensation for luck and skill and corporate governance in U.S. property-liability insurance firms

ABSTRACT We examine whether CEO compensation is tied to both luck and skill in U.S. property-liability insurance firms. To estimate luck and skill, an insurer’s underwriting margin is regressed on the industry-wide underwriting margin, with the resulting predicted value (the residual) representing luck (skill). The results show that CEO compensation is positively related to exogenous factors (luck), providing support for the skimming view and that CEO skill is an important determinant of CEO compensation as well. Notably, well governed insurers show less CEO pay for luck than poorly governed insurers, whereas insurers with strong corporate governance exhibit greater CEO pay for managerial skill than those with weak corporate governance. These results are robust to an alternative measure of luck and skill. Our findings provide important implications for the role of corporate governance in developing efficient CEO compensation arrangements in the property-liability insurance industry.

Investment Decisions and Financial Performance of Insurance Companies in Kenya.

The financial performance of insurance firms in Kenya has been fluctuating, influenced by investment decisions, regulatory frameworks, and economic conditions. This study examines the relationship between investment decisions and financial performance among insurance companies in Kenya, focusing on government securities, corporate bonds, stocks, and real estate. A cross-sectional research design was adopted, targeting all 56 insurance and reinsurance firms registered with the Insurance Regulatory Authority of Kenya. The study utilized secondary data, analyzed through descriptive and inferential statistics, including ANOVA, multiple regression analysis, and Pearson correlation. Findings indicate that investment in government securities exhibits a strong positive correlation with return on assets (ROA), providing stable but limited capital growth. Corporate bonds demonstrate a moderate positive correlation with ROA, suggesting that firms benefit from long-term bond investments. Stock investments contribute to improved financial performance, albeit with a weaker correlation than government securities. Real estate investments show a weak relationship with ROA, implying limited direct impact on profitability despite long-term financial security benefits. The study concludes that strategic investment diversification can enhance financial performance, but insurance firms must carefully balance risk and return. It is recommended that insurers adopt a mixed investment strategy prioritizing government securities and corporate bonds for stability, while selectively investing in stocks and real estate for growth. Future research should explore the impact of macroeconomic factors and emerging investment instruments, such as digital assets and green bonds, on the financial performance of insurance firms.

Healthcare assessment tools—a valid source of data for pre-hospital care? Usability for ensuring medical care in the event of a disaster

IntroductionProviding care for vulnerable population groups in the event of a disaster or evacuation is in the interests of those affected, of local authorities, health insurance companies, other insurance companies and the responsible authorities and organizations with security tasks (BOS). Evacuation and supply planning is currently mostly carried out using regionally or locally adapted so-called “isolated or individual solutions” or by means of an individual, time-consuming and usually manual and direct personal data query. Can existing medical health data from healthcare assessment tools provide valid information for the planning of care and care needs in disaster and civil protection?MethodsResearch and analysis of suitable and regularly used care assessment tools in the care sector in Germany.ResultsThe healthcare assessment tools cannot be simply combined. Without adaptation they cannot be used at all or only after concerted efforts to interpret the needs for the care of vulnerable groups in a non-clinical context.DiscussionAn improved use of individual medical data in disaster and civil protection offers many advantages in prevention, diagnostics, therapy and care in the context of disaster medicine, and not only from an ethical point of view. Due to the different tactical procedures and care strategies in disaster medicine, the field of acute care must be clearly separated from the area of evacuation and care of vulnerable groups. Currently, only the German Armed Forces (Bundeswehr) offer an internally secured infrastructure that allows all those involved in the care of soldiers to access all important medical data quickly and easily from any location.

Technology Innovation and Social and Behavioral Commitment: A Case Study of Digital Transformation in the Moroccan Insurance Industry

Digital transformation (DT) has become an imperative for companies seeking to evolve in a constantly changing industrial ecosystem, driven by the continual development and application of innovative digital technologies. Nevertheless, the success rate of DT initiatives remains surprisingly low, which only serves to highlight the need for a deeper understanding of the factors that determine the success of these initiatives. This study adopts a quantitative methodological approach to address this challenge, focusing on the Moroccan insurance industry. First, a systematic literature review was undertaken to identify the key change dimensions and related factors that influence DT acceptance, at both individual and corporate levels, as well as the potential risks associated with the adoption of DT. A survey of 100 employees of insurance companies in Morocco was then undertaken to statistically establish the key factors that determine the success of DT in these companies. The research results reveal that planned behavioral factors, as well as the innovative features of digital technologies, exert a positive influence on the attitude toward the acceptance of DT. Furthermore, this positivity translates into greater personal acceptance of new technologies within the Moroccan organizations studied. Although this paper focuses on one industry sector in one country, the authors believe the results make a valid contribution to both theory and practice. The findings indicate a clear distinction between individual acceptance of innovation and acceptance at a social level, an approach that has scarcely been addressed in previous research. It also offers valuable insights for leaders and organizational managers seeking to succeed in their DT projects by highlighting key determining factors to effectively guide this complex process.

Impact Of Perceived Organizational Support on Turnover Intention of Sales Employees in A Leading Insurance Company

Although sales employees are drivers of every organization, amid this economic contraction, they are uncomfortable with unfit sales targets. So, the employees tend to leave, unless organizational support emerges. Under this scenario, organizations light on the retention strategy in this regard. With that objective, the present study was taken to identify the impact of perceived organizational support on turnover intention with the mediating effect of sales employee engagement referring to a leading insurance company in Sri Lanka. Even if there are theoretical and empirical findings well documented for the problem, those may change according to economic fluctuations; the study is based on the specific time in 2022 in Sri Lanka, which was economically difficult for everyone. The study was quantitative, and a sample of 350 non-executive sales employees was selected utilizing the convenience sampling method. The primary data was collected using self-administered questionnaires and analyzed using the SPSS statistical package. The study found that perceived organizational support is significantly related to employee engagement, which in turn has an impact on the turnover intention of the respective employees. Further, employee engagement is found to be a partial mediator (EE = -1.1459) between independent and dependent variables but the direct effect of POS on the DV remains statistically significant (p < 0.001). The study concludes that organizational supportiveness supports eliminating turnover intentions when considering the effect of employee engagement things. Therefore, it suggests practicing more and more engagement activities at the workplace.

Unlocking crop insurance: exploring farmers' demand and willingness to pay in the agriculture sector

PurposeThis paper examines the willingness to pay (WTP) for insurance premiums and identifies the factors that influence it in fruit, greenhouse vegetables and dairy farming. It evaluates Albanian farmers' WTP for insurance products, emphasizing the key farm characteristics and factors that shape this willingness, offering valuable insights for establishing subsidized insurance.Design/methodology/approachThe study is based on a structured rapid survey conducted in 2019 with 808 farmers and interviews with key experts and operators in the insurance market. Authors use a double-bounded dichotomous choice contingent valuation technique to gauge WTP for insurance products.FindingsResults indicate that farmers' WTP ranges between 1.18 and 2.15% of their income from the main crop, depending on the farming activity, with dairy and greenhouse farmers showing a higher WTP than fruit farmers. WTP is positively related to exposure to climate hazards, engagement in modern market channels and contracting.Research limitations/implicationsThe study used three different types of farms; thus, the findings are not strictly relevant to one activity. Subsequent research could employ choice experiments to evaluate alternative insurance schemes focusing on one sector.Originality/valueThe paper contributes to the literature by empirically testing various determinants for WTP for which there are no valid findings by using contingent choice analysis to explore WTP for crop insurance.

Experiential Learning, Narrative‐Based Learning, and Insurance Adoption: Experimental Evidence from Kenya

AbstractWe compare the impact of two extension modalities on knowledge accumulation and willingness to pay for a weather index insurance product among smallholder farmers in Kenya. One approach to extension is based on experiential learning and involves participation in an incentivized framed experiment (or game). The other is based on conventional “narrative‐based” learning. While both modalities increase farmer knowledge, incentivized gamification causes more learning. We also find that experiential learning affects follow‐up demand for the insurance product, which is not true for narrative‐based learning. Interestingly, demand for insurance shifts inward after playing the insurance game. This reduction in demand is mainly caused by increased knowledge about the insurance product, but we also present suggestive evidence that experiencing basis risk during the game was more salient than theory‐based learning about basis risk. Game‐based learning is an effective approach to promote knowledge accumulation and may accentuate or attenuate adoption of innovations by updating ex‐ante, possibly biased, expectations.

Ethical Contracts vs. Commercial Realities in Indonesian Sharia Insurance

This article examined legal issues within Indonesia's Sharia insurance industry, focusing on implementing dual contracts combining tabarru’ (voluntary) and tijarah (business) agreements. The qualitative study used secondary data and a taxonomic technique to identify legal challenges. Ideally, the contract structure should separate the management of these two agreements, with tabarru’ as the primary contract and tijarah as supplementary. However, the findings revealed that Indonesia's takaful industry prioritized the supplementary tijarah contract over the primary tabarru’. This issue resulted in inadequate separation of tabarru’ and tijarah funds, leading to the mixing of returns from both sectors. This practice contradicted the fatwas issued by the National Sharia Council-The Indonesian Ulama Council (DSN-MUI) regarding Islamic insurance.Additionally, the article identifies ambiguities within some DSN-MUI guidelines. To address these issues, the article proposed an alternative contract scheme from the perspective of fiqh al-mu'amalah (Islamic economic law), suggesting that tabarru’ could be based on a fee (ujrah). In contrast, other contracts could be structured around profit and loss-sharing investment agreements.

Insurance sector readiness for digital transformation: Empirical evidence from Jordan

The significance of companies’ readiness for digital transformation is becoming more widely recognized. This study, focusing on insurance companies in Jordan, aims to investigate the impact of organizational readiness on digital transformation. The study participants were staff members from various departments and administrative levels within the insurance companies, and the study population included all insurance companies in Jordan. This study uses convenience sampling to gather the required data by distributing an online questionnaire of 39 questions. A total of 245 valid responses were received and analyzed using partial least squares structural equation modeling. The results of the study prove that change valence positively influences digital transformation. The results also show that change efficacy, incorporating resource, IT, and cognitive readiness, positively affect digital transformation. Moreover, the results confirm that contextual factors incorporating cultural, strategic, and partnership readiness positively impact digital transformation. Further, employees’ work experience moderates the relationships between organizational readiness constructs and digital transformation. These results indicate that the insurance companies in Jordan should implement a comprehensive approach that encompasses an organizational rehabilitation strategy.

Estimation Model of Pure Health Insurance Premiums in Southeast America Using Generalized Linear Model (GLM) with Gamma Distribution

Health insurance premiums are on the rise due to increasing medical costs, inflation, and the lingering effects of the COVID-19 pandemic. Accurate premium pricing is crucial for insurance companies to maintain financial stability and offer fair rates to policyholders. Generalized Linear Models (GLM) have been widely used in actuarial science for modeling insurance premiums. This study proposes the use of GLM with a Gamma distribution to model health insurance premiums. The Gamma distribution is suitable for non-negative and positively skewed data, which is characteristic of insurance claim amounts. By analyzing historical data from a Southeast United State insurance company, we aim to identify key factors influencing premium pricing and develop a robust premium model. The model will consider factors such as age, gender, BMI, number of children, and smoking status to predict individual risk profiles and determine appropriate premiums. Our findings indicate that age and smoking status are the most significant factors affecting premium rates. Older individuals and smokers tend to have higher premiums due to their increased risk of health issues. Gender and BMI, however, were found to have no significant impact on premium pricing in this specific dataset. Insurance companies can use the identified factors (age, smoking status, etc.) to create more precise risk profiles for their policyholders.

Analysis of Aggregated Claim Numbers with Geometric Distribution and Claim Sizes with Weibull Distribution Using Convolution Method

An insurance claim is a form of claim from the insured party to the insurer, in this case the insurance company, which is submitted when a disaster or event that causes loss occurs. This claim is based on an agreement contract in the form of an insurance policy that has been agreed upon by both parties. Claims that arise every time a risk occurs are known as individual claims, while the total of individual claims that occur during a certain insurance period is called an aggregate claim. Aggregate loss refers to the total loss that must be borne by the insurance company due to claims filed by policyholders in a certain period. This study aims to estimate the total aggregate claim (aggregate loss) by modeling the number of claims using the Geometric distribution and the size of the claim using the Weibull distribution. The research was conducted using simulated data from PT Insurance XYZ. The method used in this research is the convolution method, which allows the calculation of the distribution of total aggregated claims based on the pairwise multiplication of the probability density function. To support the analysis, Easyfit and R Studio software were used in data processing and simulation. The results showed that the estimated total aggregate claim (aggregate loss) for a 12-month period on the simulated data was IDR2,809,454,000 using the Geometric distribution for the number of claims and the Weibull distribution for the size of the claim. In addition, the variance value obtained from the simulation results is 5.051215e-06. These findings provide an important overview of the estimation of potential losses that must be borne by insurance companies and can be used as a reference in risk management and the establishment of a more optimal financial strategy.

Early Detection Of Financial Crisis: Analysis Of Insurance Companies On The Indonesian Stock Exchange

This research aims to analyze the influence of Liquidity, Cash Flow, Institutional Ownership, Profits, and Independent Commissioners on Financial Distress in Insurance Companies. The unit of analysis is 15 insurance companies listed on the Indonesia Stock Exchange for the 2018-2021 period. The independent variables used in this research are Liquidity which is measured using the current ratio (CR), Cash Flow which is measured through operating activities, Institutional Ownership which is measured through the percentage of shares owned by institutional parties, Profit which is measured using profit before tax (EBT), and Independent Commissioners which are measured using the percentage of the number of independent commissioners. Meanwhile, the dependent variable is Financial distress which is measured using ICR (Interest Coverage Ratio). The sample collection method used by researchers is purposive sampling. The analytical method used is multiple linear regression analysis. The results of this research show that Liquidity, Cash Flow, Institutional Ownership, Profits, and Independent Commissioners have a significant influence on Financial Distress conditions.

Determinan Financial Distress dengan Profitabilitas Sebagai Variabel Moderasi pada Perusahaan Asuransi yang Terdaftar di BEI

Financial distress is a stage of decline in the funding situation that occurs before a company is declared bankrupt or experiencing liquidity. Financial difficulties were triggered by experiencing losses in the last few years and being unable to pay off his obligations when they fell due and ultimately experiencing financial distress. In this study, researchers tried to examine the factors that influence financial distress which are moderated by profitability. Research was conducted on insurance companies in Indonesia by conducting analysis using the e-views program so that the influence of each variable on financial statement fraud could be determined. The research results show that only the sales growth factor has no effect on financial distress. As a recommendation, companies are expected to pay more attention to their financial reports, especially those that cause financial distress

Investment preferences of institutional investors in Indonesia: A comparative analysis of pressure-sensitive and pressure-insensitive groups

This study investigates the investment preferences of institutional investors in Indonesia, focusing on the factors influencing stock selection. A comparative analysis is conducted between pressure-sensitive and pressure-insensitive investor groups to explore how different factors such as corporate social responsibility, corporate governance, shariah-compliant stocks, and financial indicators, including profitability, liquidity, and risk, affect their investment decisions. Data from 938 observations across 253 manufacturing companies listed on the Indonesia Stock Exchange were analyzed using panel data regression. The period was chosen because it captures a stable economic period in Indonesia, allowing for an accurate assessment of investment patterns without major external shocks. The results reveal that institutional investors favor stocks listed on the Indonesia Shariah Stock Index (ISSI), perceived as low-risk investments. Pressure-sensitive investors, such as banks and insurance companies, prefer companies with close business affiliations, while pressure-insensitive investors, such as mutual funds and pension funds, prioritize financial performance and corporate governance. Additionally, the study finds that the debt-to-asset ratio and inclusion in the Shariah index significantly affect institutional ownership, indicating a preference for leveraged companies with ethical investment profiles. This study provides a deeper understanding of the varying preferences between institutional investor groups, highlighting the significance of ethical considerations, financial stability, and corporate governance in emerging markets.

The Role of Work-Life Balance in Enhancing Employee Well-Being Among Non-Life Insurance Employees in PUIC (Pacific Union Insurance Company)

Achieving work-life balance in the tech-driven and demanding modern world is tough. The concept of Work-Life Balance (WLB) is crucial as employees juggle work demands and personal life. In the Philippines, the non-life insurance sector, like Pacific Union Insurance Company (PUIC), faces unique challenges with high-pressure sales, client interactions, and compliance leading to stress and burnout. This study looks at how WLB can improve employee well-being at PUIC, emphasizing that a balanced life is key for both personal satisfaction and company productivity.

Enhanced Prediction of Intensive Care Unit Length of Stay using a Stack Ensemble of Machine Learning Models

The Length of Stay (LoS) refers to the time between a patient's hospital admission and discharge. LoS is considered to increase as the complexity of the disease increases. A prolonged stay in the Intensive Care Unit (ICU) can consume clinical resources and be labor intensive. Models that correctly predict LoS are needed to help medical experts make better decisions. To define an ideal process system, healthcare models must consider the patient's condition, availability of beds, resources, etc. These predictions can also help insurance companies manage their budgets. Existing models deploy machines and deep learning techniques to predict LoS. However, there is a need for improvement, considering the features associated with the process. This study presents machine learning algorithms, such as SVM and a stack ensemble, with improved accuracy over existing models. Experiments were carried out on a benchmark dataset, MIMIC-III, specific to ICU patients. The SVM model achieved an accuracy of 93.88%, while the stack ensemble model showed an improved accuracy of 94.70%. The results show that combining machine learning models achieves better prediction rates, which helps healthcare professionals make better decisions.

The impact of risk aversion on the rigidity of insurance premiums

AbstractA risk averse insurance company that knows the quota of coverage demanded by a client at the status‐quo premium but has imperfect information otherwise may choose not to change the premium, although an else identical risk‐neutral company would do so, provided the variance of the company's subjective probability distribution over the quota demanded as a function of the premium displays a kink at the status quo. This is equivalent to risk aversion of order 1. When no such fixed premiums exist, the size of premium adjustment still decreases substantially as risk aversion increases. Moreover, in case of small premium adjustment costs, increasing risk aversion significantly diminishes the size of costs sufficient to keep the premium unchanged.

Enhancing Hospital Data Security: A Blockchain-Based Protocol for Secure Information Sharing and Recovery

Hospitals that store sensitive patient medical records have recently faced issues such as the inability to recover medical data and breaches of patient privacy due to hacker attacks. These attacks on medical data often involve ransomware, which obfuscates the entire hospital’s data, making them inaccessible, and can also occur when hospitals share patient information during transfers of care. In this study, we propose a new authentication protocol to prevent and address such issues within hospital systems. The proposed protocol encrypts medical records on a private blockchain, allowing them to be securely shared among institutions, hospitals, and insurance companies, ensuring data recovery even if a ransomware attack paralyzes the server. Additionally, the protocol facilitates the systematic sharing of patient medical records between hospitals or between hospitals and insurance companies by distributing session keys. In this study, we demonstrate that the proposed protocol provides 11 security properties, including forward and backward secrecy, user untraceability, and resistance to replay attacks. We also evaluate the communication and computational costs, proving that the protocol is feasible for practical use.

Forecasting Gross Written Premiums in Albania's Life Insurance Industry: Insights for Financial Sustainability

The insurance industry in Albania is a sector that consistently receives significant attention in the overall financial industry and plays a crucial role in fostering a culture of insurance among the populace. Year after year, these companies have expanded their presence to the clients, and what is most important, they have expanded the products that they are selling to the clients. This paper aims to analyze the historical development trends of the Albanian insurance industry, taking into account its significance for a developing economy. Additionally, empirical models will be constructed to predict the values of gross written premiums over a four-year period. The methodology that will be used consist of the analyses of SARIMA and Holt-Winter models to prevent the prediction of the four year period on gross written premiums (GWP) on the life insurance industry in Albania. These models and the comparison between them will prevent a better understanding of the future life insurance in Albania. Those results will help all participant actors of the industry to contribute to a safe and secure environment for the people. Also, the result will help to see the trend and lead the government and companies to prevent the impact of economic sustainability. The conclusion from this paper is that the years from 2024 to 2027 life insurance will grow Keywords: Life Insurance, analysis, SARIMA, Holt-Winters, safe environmental, GWP, Albania.