Development Of Life Insurance Research Articles

Детермінанти низького рівня розвитку ринку страхування життя в Україні

The aim of the study is to find a correlation between indicators such as average wages and gross insurance premiums in the life insurance industry. The purposes of the research are: determination of the main determinants that affect the development of the life insurance market over a twenty-year period, search for the main reasons for the low level of life insurance in Ukraine. The methods of research in this publication are the methods of scientific abstraction, induction and deduction for a comprehensive consideration of the reasons for the low level of development of life insurance in Ukraine, individual provisions of the research are supplemented by methods of economic and correlational analysis. It is found that during the period of its formation, the insurance market of Ukraine in the field of life insurance went through several stages of its formation and continues to be formed and improved. It is determined that in 2022, the share of gross life insurance premiums in GDP equaled 0.09%, which is a very low indicator compared to developed foreign markets. This indicates the weak development of this type of insurance due to a number of reasons. A retrospective analysis of scientific publications and research over a twenty-year period showed that one of the reasons for the low level of development of life insurance is the low income of potential customers of the insurance company, which was indicated by a large number of publications. Since the salary is the main type of income of our compatriots, it is assumed that its level affects the volume of gross insurance premiums. To test this hypothesis, a correlation coefficient of 0.965 was defined. This indicates a direct relationship between wages and gross insurance premiums. The correlation coefficient is determined based on statistical information on average wages and gross life insurance premiums over a twenty-year period. Therefore, it can be predicted that the determinant of the growth of the life insurance market will be the increase in wages of potential consumers of insurance services in real terms. Further research in the field of the life insurance market will concern the forecasting of the salary level of potential consumers of insurance services, at which the volumes of life insurance will be growing.

ІНВЕСТИЦІЙНА ДІЯЛЬНІСТЬ СТРАХОВИХ КОМПАНІЙ НА РИНКУ СТРАХОВИХ ПОСЛУГ УКРАЇНИ: ОЦІНКА ТА НАПРЯМИ РОЗВИТКУ В СУЧАСНИХ УМОВАХ

The article considers the formation and investment of financial resources of insurance companies in Ukraine in the current conditions and outlines the main directions of increasing the investment potential of insurance companies. The dynamics of growth of insurance premiums, reserves, assets and equity of insurance companies as important indicators of market development in general and investment income of insurance companies are studied. The small share of insurance premiums and assets in GDP indicates that the development of the insurance market has little impact on the country's economy. There is a gradual growth of the market in 2023 by key indicators. Insufficient capitalization of the domestic insurance market, a large share of compulsory insurance in insurers' portfolios, low level of life insurance development, and economic crisis are currently having a negative impact on the development of insurance companies' investment activities. The author outlines the main areas of investment activity for the near future, which are to activate the financial market in order to use a wide range of investment instruments, improve the quality of the investment portfolio and optimize its management by transferring part of the insurance reserves to trust management, and encourage insurance companies to invest in the real sector of the economy. It is important to strictly adhere to the principles of building an investment management system based on high investment liquidity, return on investment, strict liquidity restrictions, and sensitivity to changes in interest rates and profitability. All of this will help strengthen the investment potential of the insurance market, turn it into an important investor in the national economy, and increase the profitability of insurance companies' investments, in particular. In addition, the development of voluntary insurance, including long-term life insurance, the development of new competitive insurance products, the search for new and improvement of existing sales methods, the expansion of the regional network, and the widespread use of digital technologies are considered promising.

LIFE INSURANCE DEVELOPMENT AND ECONOMIC GROWTH: A CASE STUDY OF NIGERIA (2000-2022)

This research looked at the development of life insurance and economic growth using Nigeria as a case study from 2000 to 2022. Specifically, the authors examined the causal relationship between life insurance development and economic growth, analyzed the effect of life insurance penetration and life insurance density on real GDP growth rate. Data used for the study were collected from sources including the World Development Indicator database, Global Financial Development Indicator database, NIA digest database, and Central Bank of Nigeria statistical bulletin. Granger causality test and Autoregressive Distributed Lag (ARDL) co-integration were used in the investigation approach. The granger causality test result indicated that there is no causal connection between Nigeria's economic growth and the development of life insurance. According to ARDL estimate results, life insurance density and penetration had a negligible positive effect on the real GDP growth rate. Hence, this study established that life insurance development is yet to contribute to economic growth in Nigeria, due mainly to its low level and mode of operations. Therefore, this study recommended among others that life insurance institutions should also increase their scope of operations to be directly involved in business investments other than financial market investment to enhance their level of significance in the growth process of Nigeria.

Strategi Pelayanan dalam Meningkatkan Loyalitas Nasabah Ditinjau dari Manajemen Syariah Studi di PT. Asuransi Jiwa Syariah Bumiputera Cabang Kediri

The development of sharia life insurance which is increasingly having an increase makes PT. Bumiputera Sharia Life Insurance Kediri Branch must have excellent service. For that PT. Bumiputera Sharia Life Insurance, Kediri Branch has developed a service strategy to increase customer loyalty. By increasing customer loyalty, it will make it easier for PT. Bumiputera Sharia Life Insurance Kediri Branch to win business competition. The purpose of this study was to determine the service strategy in increasing customer loyalty at PT Asuransi Jiwa Syariah Bumiputera, Kediri Branch, in terms of sharia management. This research uses a qualitative approach with the type of research is a case study. Collecting data using the method of observation, interviews, and documentation. Checking the validity of the data used is the extension of participation, observation persistence, and triangulation. The result of this research is PT. The Bumiputera Sharia Life Insurance, Kediri Branch, provides services using a family approach strategy, where the approach taken is to maintain closeness with customers. When viewed from the five service indicators, namely reliability, responsiveness, assurance, empathy and physical evidence, then the four indicators have been implemented. However, in terms of physical evidence indicators, there are still deficiencies that are not appropriate, namely in the buildings and facilities provided. Implementation of sharia management at PT. Bumiputera Sharia Life Insurance, Kediri Branch, adheres to the principle of justice, namely the family approach. Then for the communicative principle lies in the application of speaking, listening, and looking culture. As for the principles of trust and accountability, namely the transparency of the insurer and all responsibilities for customer funds.

Solution Attracting Customers to Participate in Life Insurance in the Vietnam Market

Vietnam is a potential market for life insurance, but so far, the growth rate of life insurance has not been commensurate with a densely populated market like Vietnam. The purpose of the article is to give an overview and preliminary view of the development of life insurance in Vietnam. There are still limitations in the business activities of these enterprises. The ability to expand market share and necessary solutions for life insurance businesses in Vietnam.

Insurance Penetration and Institutional Spillover on Economic Growth: A Dynamic Spatial Econometric Approach on the Asian and Europe Region

The contemporary environment is interrelated, and interactions between markets, countries, and international actors at different levels exist in every corner of the globe. Amid this, the failures of the free-market system have paved the way for institutionalism, which proposes minimising transaction costs, substantial property rights, and enabling proper contract enforcement. Studies on institutions and insurance development spillover concerning growth relationships are rare and a critical area needing exploration. This study explores the behaviour of economic development in terms of potential spatial dependencies and spatial institutional and insurance development spillover on economic growth. To measure insurance development by the life insurance and non-life insurance penetration, economic growth by per capita gross domestic product (GDP), and indicators of good governance for institutions in the nations. The study explored the spatial impact between countries using panel data of 56 countries between 2002 and 2020 representing the Asian and European regions. We did this by using dynamic spatial econometric modelling (DSEM) on institutional and insurance development and seeing the spatial implications and the spatial institutional impact moderated by insurance development on growth. Results indicate that developing the life insurance and non-life insurance of surrounding countries creates a spillover impact on the local countries’ economies. In contrast, institutions have created a reverse spatial spillover impact on local countries. However, life insurance development, moderated through accountability and government effectiveness, has created a spatial spillover between countries. Both life and non-life penetration moderated by the control of corruption and overall institutions have shown a reverse spillover on countries’ economies. This suggests that global governance is a positive-sum game, and monitoring and governance structures have failed at the international level concerning separate countries. Therefore, it is seen that to prevent institutional failure at the state level, good governance and links with the global governance structure could disrupt or energise local institutions.

Assessing the Current Situation of Business Activities of Vietnamese Life Insurance Enterprises

By methodology research method, the article has synthesized information about the history of the formation and development of life insurance in the world and in Vietnam. As a country in the group of developing countries, the insurance industry, including life insurance, is considered to have a lot of potential for future development with the advantage of a young population and a growing economy. From the insurance market data over the years, the article has analyzed the business performance of Vietnamese life insurance enterprises. Accordingly, the premium revenue of the entire insurance market has increased continuously over the years with the average number of new policies reaching 3,024,004 contracts/year or the diversified distribution channel size is also a reason increase in market revenue. However, it also has limitations such as the strong but unbalanced market size, the number of Universal life and Term Insurance products accounted for 87% and the number of contracts canceled before expiration has increased continuously over the years. years. The article also identifies development opportunities and challenges such as increasing competition, a high number of insurance product distribution agents leaving every year, and an inconsistent information technology infrastructure.

What Drives Life Insurance Development in Sub-Saharan Africa? The Role of Information and Communication Technology

What Drives Life Insurance Development in Sub-Saharan Africa? The Role of Information and Communication Technology

INSURANCE COMPANIES AS PRODUCERS OF INVESTMENT FINANCIAL SERVICES

Introduction. Insurance companies are among the largest investors in countries with developed insurance markets. At the same time, it is legitimate to consider them as institutional investors. In today's conditions, foreign insurance companies demonstrate the intensification of life insurance, which, in turn, determines the need to improve existing insurance products and/or introduce non-traditional products, which include investment life insurance. The latter are a popular instrument in the market of insurance and investment services, primarily due to the combination of such features as insurance protection and profitability. The successful operation of life-insurers in a constantly dynamic and competitive environment is associated with their ability to quickly respond to the challenges of the external and internal environments, and not only to adapt to them, but also to use new circumstances for increasing the competitiveness and capitalization of the company, as well as preserving and expansion of own client base. The purpose of the article is to study the specifics of the activity of insurers as institutional investors, on the one hand, and their ability to produce investment financial services, in particular investment life-insurance services, to identify the attributes of the latter, differences from classical life insurance and outline the prospects for the development of investment-oriented life insurance on the domestic insurance market. Results. It is identified the features of the functioning of insurance companies as institutional investors. The definition of “investment potential of an insurance company” was defined and deepened. The specifics of investing insurance reserve funds and investment opportunities for non-life and life insurers are argued. Modern trends in the development of the life insurance market and, accordingly, the latest formats in the management of assets of life insurers have been revealed. The specifics of investment life insurance are clarified and its attributes are formulated. The differences between classic mixed life insurance and investment life insurance are systematized according to the following criteria: motivation for concluding the contract; placement of insurance premium; the principle of calculating insurance premiums; obligations of the insurer; the amount of the redemption amount; the possibility of receiving additional payments; the dynamics of increasing the premium reserve. Trends in the development of investment life insurance in Europe and on the Polish insurance market have been analyzed. Conclusions. Modernity requires the implementation of the latest approaches to the activities of insurance companies, in particular in the area of production of investment financial services, namely investment life insurance. Classical standards in life insurance are gradually being abandoned, which contributes to the dynamic development of insurance worldwide, which provides for the payment of insurance coverage depending on the dynamics of stock values. The need to develop investment life insurance on the domestic insurance market – a financial instrument that embodies both insurance protection and an accumulation opportunity with the help of investments – has been proven.

State of personal insurance in the Kyrgyz Republic at the present stage of development in the conditions of the COVID-19 pandemic

The article discusses the current state of personal insurance in the Kyrgyz Republic, which is a very significant financial instrument for maintaining the stability of the welfare of the country's population. The legislative definition of the concepts of insurance activity, the insurer, the insured, the contract of personal insurance, the grounds for concluding a contract of personal insurance are being studied. The classification of types of personal insurance according to various criteria is given. Life insurance services provided by individual insurance companies of the republic are considered. The dynamics of insurance premiums and insurance payments of several leading insurance companies in Kyrgyzstan in recent years in the context of the ongoing financial and economic crisis caused by the COVID-19 pandemic are analyzed. In the current period, insurance companies have demonstrated an increase in the volume of insurance premiums and insurance payments for personal insurance. At the same time, the development of life insurance (accumulative) remains at a low level. For further progressive movement of this segment of insurance, it is necessary to implement several key tasks.

Profitability determinants of life insurance companies in the Republic of Serbia

Background: Based on the results of research on the influence of certain internal and external factors on the profitability of insurance companies in the countries in Europe, America, Asia and Africa in the 21 st century which were published in a significant number of scientific and professional papers, the present study analyses insurance companies in Serbia in the period from 2015 to 2021. We chose this analysis bearing in mind the previous negative experiences and expressed distrust in the financial system, which greatly affected the readiness of policyholders to invest in life insurance products, as well as affecting significantly the development of life insurance in Serbia. Purpose: The aim of the paper is to present the business results of the insurance companies on the Serbian market in the analysed period and to determine which business performance the management of an insurance company should pay attention to in order to ensure positive business results. Study design/methodology/approach: We applied a fixed effects model on the nine selected variables. In the model, return on assets (ROA) is used as a dependent variable, while operating margin, expense ratio, investment ratio, growth rate of written premium of a company, company size, log (financial leverage), log (liquidity ratio), and market share are independent variables. Findings/conclusions: The results of the research indicate that there is a statistically significant and positive impact of operating margin and liquidity ratio on ROA, and statistically significant but negative impact of expense ratio and financial leverage on ROA. Limitations/future research: The limitation of our profitability analysis is that we were unable to analyse the impact of individual life insurance products on profitability. Bearing in mind numerous and significant social and economic changes over the last two years, the directions of our future research will be focused on their impact on the business operation of insurance companies.

What Drives the Development of Life Insurance Sector? Empirical Evidence from Tanzania

The study was conducted to examine determinants of life insurance development in Tanzania where by inflation rate, interest rates, income level, domestic savings and financial depth as independents variables while life insurance development specified by premium written was a dependent variable. The study guided by, the ex post facto research design. The study population consist the whole macroeconomic environment where sample of five aspects named interest rates, income level, domestic savings, financial depth and inflation rate selected with coverage of twenty-three (23) years from 1996 to 2018. The study employed a purposeful sampling technique to select five aspects of macroeconomic factors. The study employed secondary data pooled from the Tanzania Insurance Regulatory Authority (TIRA), Bank of Tanzania (BOT) and National Bureau of Statistics (NBS). Basing on the hypotheses testing the study found that financial depth and interest rate have a statistically positive influence on life insurance development. Moreover, inflation rate, income level and domestic savings have a statistically negative influence on life insurance development at 5% significant level. The study findings provide insights from a practical point of view on the determinants of life insurance development in developing countries like Tanzania, thus filling the gap in the literature reviews. The study findings serve as guidance to regulators and policymakers on what set of factors to review and incorporate into policy in order to foster positive development of life insurance in Tanzania.

The Development of Life Insurance in the Czech Republic and the Slovak Republic

This article investigates the influence of selected determinants on the development of life insurance in the Czech Republic and the Slovak Republic in the years 2007–2019. The aim of the present study is to examine whether there are relationships between the development of selected determinants and the development of life insurance in the Czech Republic and Slovak Republic. We are using the correlation analysis, specifically Spearman‘s correlation coefficient, performed in the Eviews program with quarterly data. The determinants can be divided into positive and negative. Positive determinants encourage consumers to take out an insurance contract, thus acting to increase interest in insurance. Negative determinants have the opposite effect, which means that the consumer‘s willingness to take out insurance decreases, and the consumer is not interested in insurance on the development of life insurance in selected countries in the period under review. A positive impact on the development of life insurance was found in the case of gross domestic product, average gross monthly wage, interest rate on deposits and population in selected countries in the period under review.

Information and Communication Technology Adoption and Life Insurance Market Development: Evidence from Sub-Saharan Africa

As part of the Fourth Industrial Revolution (4IR), blockchain, fintech (financial technology), and insurtech (insurance technology) are some innovations that have been rolled out in the financial landscape and have captured the imaginations of policymakers and scholars alike. The African continent lags in embracing technology and is still grappling with financial access and enhancing financial inclusion. As such, it is bewildering whether African insurance markets are at a stage where they can leverage the possibilities offered by the 4IR. Against this backdrop, the aim of the study was to investigate whether information communication technology (ICT) adoption influences the development of African life insurance markets. We utilised a sample of 31 sub-Saharan African countries for the period 2005–2020. Panel data techniques were employed, and the pooled ordinary least squares, fixed effects, and random effect estimators were used to test the relationship between life insurance density and the measures for ICT adoption (proxied by fixed telephones, internet use, mobile cellular telephones, and broadband) as well as financial freedom being the control variable. We found that the life insurance market development variable was positively related to three of the four ICT adoption variables, namely, fixed telephone, mobile cellular telephone, and broadband. Further, the life insurance market development variable is positively related to the financial freedom variable. These findings suggest that ICT adoption fosters the development of the life insurance market in Africa. The findings also lend credence to the view that the degrees of financial freedom of insurance companies (who are unencumbered by regulations) have a bearing on the levels of insurance sales and, hence, promote life insurance access in Africa. The policy imperatives that flow from this study are that African governments must ensure that they (1) institute ICT adoption-friendly policies and (2) regulate the life insurance sector optimally, in order to foster the development of their life insurance sectors.

How Insurance Industry of China Responds to The Crisis of COVID-19

In the context of the normalization of the COVID-19 epidemic, the insurance industry, as an important part of the financial market, has been affected positively or negatively, and its functions such as risk management and social stability have been widely valued. The transformation of the insurance industry is already in progress. In addition to the stimulation of the epidemic, the development of China's insurance industry faces many inevitable challenges in the fight against COVID-19; For example, insurance consumers are not rational, insurance claims are under pressure, offline business is blocked, and other challenges also usher in opportunities such as stimulated insurance demand, marketing upgrading, business transformation, and rapid development of life insurance, health insurance, Internet insurance, and credit insurance. In order to effectively cope with the crisis faced by the insurance industry, insurance companies can learn from international experience, establish emergency response function organizations, open online marketing models, innovate insurance types related to the epidemic, and actively build insurance smart enterprises by using science and technology to do a good job in the prevention and control of COVID-19 epidemic, so as to achieve the sustainable and healthy development of the insurance industry.

Threshold effect for the life insurance industry: evidence from OECD countries.

We investigate the impact of new financial and economic determinants on life insurance demand for 29 OECD countries for the period 2005–2017 while controlling for a set of widely used socio-demographic and economic characteristics. Based on a panel smooth transition regression model, we find a regime-switching effect characterising the impact of bank concentration and interest rate on the size of the life insurance market, in light of the old-age dependency ratio as the threshold variable. We also show that life insurance development is boosted in countries with high scores for investment freedom and with high levels of foreign direct investment rates, regardless of the level of the old-age dependency ratio. The impact of GDP per capita on the demand for life insurance products is positive and statistically significant, regardless of the level of the threshold variable.

Regulatory examinations and life insurance development

PurposeSolvency and market conduct regulations play a crucial role in supporting life insurance development by boosting consumer confidence and securing a stable environment for insurers to write business. The regulation encapsulates not only the legal framework but also its enforcement. This study aims to focus on the latter and investigate the impact of solvency and market conduct examinations on life insurance development within a homogenous legal environment in the USA.Design/methodology/approachTo test the relationship between the regulatory examinations and life insurance development, this study uses annual data for 51 US states over the period 2013–2018 and uses fixed and random effects panel regressions controlling for the possible omitted variables bias and serial correlation. This study constructs two groups of indicators to measure the robustness and ability of regulators to prevent insolvencies and opportunistic market practices and estimate their effects on market development.FindingsThe results show that more stringent regulators with respect to solvency examinations deter life insurers from their markets and channel to those markets with lenient examiners, hurting the development of life insurance in the stringent states. Additionally, regulators boost consumer confidence by providing robust market conduct practices, which results in higher life insurance demand.Originality/valueThis study contributes to the debates about the pros and cons of the current state-led regulation in the USA and the general benefits/costs of regulation for insurance market development.

Perspectives of the development of life insurance in Georgia

Problems in the life insurance market must be taken into account by insurance companies, however, the public must also be aware of the benefits that life insurance can bring to them. By using this insurance, people are able to take care of their family financial stability in the event of an unforeseen event. The aim of the paper is to promote the development of the life insurance market, improve the insurance culture and system, as well as increase public confidence in life insurance, conduct a study of the life insurance market and study the state of its development in Georgia. Systematic and logical generalization, analysis and synthesis methods of research were used to address this issue. Conclusion. Among the factors hindering the development of the insurance market, we can single out: Lack of information; Mentality; Economic situation of the population. At the same time it is necessary to develop the investment market, which will give incentives to people to invest in life insurance. In the field of pension and life insurance to develop and introduce new products that will be maximally adapted to different segments of the population. It is very important to popularize life insurance. Improve the control mechanism and control the objectivity and fairness of the contracts concluded in the life insurance service, monitor the extent to which the parties to the contract fulfill their obligations. It is necessary for insurance companies to adapt their products to different social strata as much as possible and to take into account their capabilities. To develop individual approaches to each customer. Raise public awareness, raise their qualifications and introduce innovative approaches. Keywords: life insurance, pension insurance, term, perpetual and mixed life insurance.

The Threshold Effect of Regulatory Quality on the Relationship between Financial Development and Economic Growth: Evidence from Asian Countries

Abstract This study aims to provide new insights on examining whether regulatory quality influences the relation between financial development and economic growth by applying a nonlinear panel smooth transition regression (PSTR) model. Using the data from Worldwide Governance Indicators (WGI) to assess the soundness of regulatory quality, this paper finds that the relationship between financial development, including life insurance and stock markets, and economic growth is significantly positive in the countries with relatively better regulatory quality. Our findings not only indicate that sound regulatory quality could encourage the growth effect of life insurance and stock market sectors but also have far-reaching practical implications for other economies to realize regulatory quality should matter for the development of economic growth. JEL classification numbers: E44, G22, O11, O47, P34. Keywords: Regulatory quality, Life insurance development, Stock market development, Economic growth, Nonlinear panel smooth transition regression (PSTR) model.

Life insurance as a tool to increase the welfare of the russian population

Life insurance has been the driving force behind the development of the Russian insurance market in recent years. The types of life insurance that are significant insurers in Russia include not only insurance protection for the population, but also compliance with the requirements for increasing financial resources, and thus high economic indicators of human welfare. The article provides a statistical analysis of the development of insurance in Russia on a special rise, which showed a progressive increase in insurance premiums and international agreements to identify risks. Also, it was found that the predominant types are accumulative and investment life insurance, which allow not only to provide insurance protection, but also implement accumulative and investment functions. At the same time, a significant territorial differentiation of insurance premiums for life insurance in Russia and a low level of its penetration were determined. The work systematized the studies of economists devoted to the indication of the determinants of the development of life insurance. An attempt was made to estimate the determinants according to Russian data. The authors built econometric models that allowed to determine the main factors influencing the development of life insurance as a way to strengthen the financial position of an individual in Russia. As a result of the study, it was revealed that at the level of the constituent entities of the Russian Federation, the determinants of demand are both social and economic factors. The stable regressors, significant in all constructed models, were the gross regional product per capita, the average monthly accrued wages, the female population and the number of unemployed. Also significant in some models were the population size and the level of education of the able-bodied population.