Global Insurance Market Research Articles

SARIMA Model-Based Monte Carlo Simulation of Option Contract Design for Maize Seasonal Heavy Precipitation in Shenyang

Agricultural production is highly dependent on weather conditions such as temperature, light, water and heat. The huge loss caused by extreme disaster weather makes the global insurance and reinsurance market overwhelmed, and seriously affects the enthusiasm of agricultural investment and the development of agricultural economy. With unique topography and vast territory, China is vulnerable to complex and diverse climate disasters. In recent years, the annual average economic loss caused by extreme weather disasters has reached about 200-300 billion yuan, among which floods caused by extreme heavy rainfall are the main agricultural disasters in China. In order to enhance the "farmer - insurance company - government" interest association to resist the risk of flood disaster caused by extreme heavy rainfall, financial hedging derivatives of weather disaster risk have gradually become a new hedging tool besides traditional insurance and reinsurance. This paper takes Shenyang, the main grain producing area in northeast China, as the sample of the study area, and uses the SARIMA model to obtain the distribution characteristics of seasonal rainfall time series. Different seasonal rainfall index option products (call option and put option contracts) are designed respectively, and the final option pricing is obtained by Monte Carlo stochastic simulation. The seasonal rainfall call option and put option contracts have opened up a new hedging model of agricultural extreme weather catastrophe outside the insurance and reinsurance market, which has enriched the varieties of weather financial derivatives market in China, reduced the severe impact of extreme weather disasters on agriculture, and enhanced the ability of agricultural stakeholders to resist the risk of extreme weather disasters.

재보험계약원칙(PRICL) version 1.0에 대한 약간의 검토

In 2010, the European Principle of Insurance Contracts (PEICL) stipulated that PEICL did not apply to reinsurance contracts. The reason was that the insurance contract law of most EU member states completely excluded the application of the insurance contract law to reinsurance contracts. Accordingly, the project group led by the private sector began to write the Reinsurance Contract Law Principles (PRICL). The goal of this work is to provide a unified soft law for contract law to the reinsurance market. This project has a similar purpose to the restatement promoted by the American Legal Association (ALI) and has a similar writing format. ALI's restatement is intended to enhance the clarity and simplification of the law, accommodate social needs, and encourage the performance of academic and scientific legal work useful in trials. Project Group published its achievements so far in 2019. It was named PRICL version 1.0. PRICL Project Group planned to complete the work until the end of 2023, but failed to complete it due to COVID-19 pandemic and other reasons. Korea occupies a significant portion of the global insurance(and reinsurance)market. Nevertheless, the author regret the lack of research on PRICL in Korean academia. This paper briefly introduces the basic matters of PRICL's preparation process and version 1.0. As well as the provisions to be added in the future, a detailed review of the entire article is required.

A Study on Public Sector and Private Sector Insurance in India

India’s insurance sector has been growing rapidly in the last decade. Different reforms have been implemented to stoke for the sector’s growth. But still has a long way to go, as its share in the global insurance market remains very low. It provides a link between the present and the future. Today India is one of the fastest growing economies of the world. According to the World GDP Ranking 2024 list, India is the fifth largest economy in the world. India is also fifth largest life insurance market in the world’s emerging insurance markets growing at a rate of 32-34% each year. Over the past nine years, the insurance sector has attracted substantial foreign direct investment amounting to nearly US$6.5 billion (Rs.54,000 crore), driven by the government’s progressive relaxation of overseas capita flow regulations. Insurance Industry is a growth-oriented industry. The life insurance sector in India has seen an array of changes in the past one decade. The economic scenario which emerged after globalization, privatization and liberalization has thrown a new challenge before the insurers. The present study is basically discussed regarding growth of private sector and public sector insurance of India, market share of public sector and private sector insurance and overall position of India’s public sector and private sector insurance.

THE IMPACT OF PUBLIC INSURANCE POLICY ON THE PRIVATE INSURANCE MARKET: THE EXAMPLE OF AZERBAIJAN

Economic actors, whether individuals or organizations, generate externalities via their economic activities, which may have either positive or negative effects on other economic units that are not directly connected to them. These actions are undertaken with the aim of maximizing their own benefits or profits. The insurance industry, which plays a significant role in economic activity, also generates social externalities. The insurance business generates significant externalities, resulting in a substantial multiplier impact on the economy. The insurance industry will significantly contribute to the key components required for investment in Azerbaijan's rising economy, including savings, financial possibilities, a trustworthy environment, and risk reduction. Azerbaijan's contribution in the global insurance market is quite small in proportion to its potential. This article aims to analyse the impact of governmental insurance practices on private insurance.

TRANSFORMATION OF THE GLOBAL INSURANCE MARKET IN THE CONTEXT OF THE INTRODUCTION OF NEW BUSINESS MODELS AND MODERN INSURANCE TECHNOLOGIES

Introduction. The insurance industry has undergone significant changes in the last decade. Global transformations in society, rapid development of financial technologies, systemic financial shocks and the coronavirus pandemic, escalation of military conflicts into war, necessitate a rethinking of the conceptual foundations of insurance activities, modification of relationships between participants in the insurance market, and the testing of new business models for insurance companies. In this context, the study of current trends and the development of directions for further transformation of the global and local insurance markets in the context of optimizing the business processes of insurance companies in the global InsurTech environment become particularly important. The purpose of the article is to analyze the realities of the functioning of the global insurance market in the conditions of changing the paradigm of its development; to identify key challenges, identify new threats, and outline the main vectors of transformation of the insurance business environment in the modern InsurTech space. Results. The decisive role of the insurance market in providing insurance protection to economic entities, individuals, and international institutions has been clarified; macroeconomic uncertainty and geopolitical transformations that significantly affect the development of local and global insurance markets have been identified. It has been proven that the insurance business has demonstrated its adaptability to new realities of functioning by improving operational systems, applying innovative strategies and digital marketing technologies, implementing new financial solutions, and establishing strategic partnerships. New vectors of development of the insurance market in the global insurance space have been identified, aimed at introducing InsurTech and automating business processes in the activities of insurers; a customer-oriented approach in working with policyholders; and the development of new insurance products taking into account their hyper-personalization and accessibility. Conclusions. The following conclusions have been drawn based on the results of the study: new trends in the transformation and modernization of the insurance market are observed in the context of the implementation of innovative technological achievements, the formation of strategic alliances between insurance companies and other financial structures; intensive shifts in the insurance business are taking place in a regional context, particularly in Asian and other developing countries; insurance companies are being reprofiled towards a customer-oriented business model, digital marketing, remote customer service, and the promotion of new insurance products.

A Machine Learning-Based Risk Assessment System Prediction Algorithm for Examining Medical Insurance Costs

Insurance is vital in today's society because it provides a critical financial safety net for individuals, families, organizations, and even governments. Based to the Global Insurance Market Analysis report, the global life insurance market was worth more than $3 trillion in 2019. It is critical in limiting the financial risks associated with unanticipated catastrophes, ensuring stability and peace of mind. In our Study, we embarked on an ambitious project to use machine learning to anticipate medical insurance expenses. Our mission began with a large dataset containing the health and demographic information of over 18,000 people, methodically obtained from Kaggle. This dataset included a plethora of variables such as age, gender, BMI, number of children, area, and, most importantly, medical charges. Our adventure progressed through numerous crucial stages. It all began with an essential component of uploading the dataset to Google Colab, which set the tone for the computational magic to follow. Preprocessing followed suit, with us dealing with missing data and unnecessary columns. To fill these gaps, we used a variety of strategies, including imputing missing values with averages or the most frequent values. In our pursuit of an optimum dataset, we meticulously changed discrete variables to continuous variables. We separated our dataset into separate subsets for training and testing using a 66:34 split ratio and used 5-fold cross-validation during the primary data analysis to enable model evaluation. Meticulous examination and citations to research publications led the important juncture of model selection. Our regression model lineup included Neural Networks, AdaBoost, Random Forest, and Gradient Boosting. The results were clear-cut, with the Neural Network coming out on top in terms of predicted performance. AdaBoost, Random Forest, and Gradient Boosting were close behind. We experimented with data visualization to better comprehend the data and the performance of the models. Sieve diagrams, bar plots, and line graphs shed light on the complexities of the dataset and the predictions of our models. Our future goal includes improving the application's accuracy and user interface, as well as assuring accessibility across all age groups. Furthermore, Our Study represents the promise as well as the potential of machine learning in the field of healthcare finance, revealing insights that have the potential to transform insurance cost estimation.

An investigation into outside directors, managerial compensation, and firm performance in the Korean insurance industry

PurposeThis study investigates the relationship between outside directors, managerial compensation, and firm performance in the Korean insurance industry.Design/methodology/approachThe authors employ a simultaneous equation framework by using three-stage least squares (3SLS) to address the endogeneity problems that could result from the joint determination of outside directors, firm performance, and executive compensation in Korean insurance companies.FindingsThe authors find that the ratio of outside directors on the board is negatively associated with insurance firm's value and financial profitability. In addition, this study's evidence shows that greater representation on the board by outside directors leads to a higher level of executive pay. In particular, the authors provide evidence that variable compensation scheme and outside directors who have backgrounds in the legal profession and former high-ranking government officials drive this study's main results.Originality/valueThis study adds to the literature by first demonstrating the interaction effects between outside directors, firm performance, and executive compensation in the Korean insurance industry. Unlike previous studies that typically focus on US companies, the authors study the Korean insurance sector that is an emerging power in the global insurance market, ranking seventh in terms of total premium volume, and show that the Korean insurance firm's outside directors system does not work in the manner that it is intended to function.

İslami ve Konvansiyonel Sigorta Arasındaki Perspektif Farklılıkları: Risk Paylaşımı ve Risk Transferi Kavramlarına Dayalı Bir Analiz

This article presents an argumentative analysis comparing conventional insurance and Takaful, a segment of Islamic insurance system. The objective of the study is to evaluate both systems from justice, economic, risk, moral, and refund policy perspectives. It focuses primarily on Takaful, a risk-sharing insurance that is considered more viable than conventional insurance in terms of demonstrating compliance with the five sample indicators. Despite some limitations, the study argues in favor of Takaful because its limitations are mostly individual, not institutional in nature. There is a significant and higher growth of Takaful than conventional insurance, and it has the potential to become a significant player in the global insurance market. The research adds significant value to the existing literature on Islamic finance and insurance through its evaluation of Takaful and conventional insurance.

Concept and Reasons of Growth for Online Insurance Penetration in India

The insurance industry in India has seen rapid growth in recent years. In India, the insurance sector is at the forefront of economic growth. Over the last decade, gross premiums have grown at an average rate of 7.2%, making the Indian insurance industry one of the largest in the world. Customer behavior has also changed significantly during this time, with 20-25% of them increasingly using digital channels to understand and compare insurance options. In addition, businesses are now more connected and aware thanks to the Internet of Things (IoT) and other technologies that have rapidly taken hold. Although a number of changes have been made to boost the growth of the sector, it still has a long way to go, as its share in the global insurance market is still staggeringly low. The problems facing the sector include low market penetration and density, lack of investment in insurance products, the dominance of state insurers and their declining financial health. Addressing these issues is critical to building a strong insurance business, as India's economic growth depends on how resilient its economy is to shocks.

Imputed Insurance in the Republic of Kazakhstan: Problems, Solutions and Development Prospects

The global insurance market, including the market of Kazakhstan, is in constant development and change due to instability in geopolitics, global and national economy. It is worth noting that, despite the growth, the development of the insurance market in Kazakhstan lags behind developed countries. Kazakhstan needs to increase the percentage of the contribution of insurance assets to the GDP structure. This article discusses the main problems hindering the development of the insurance market and, in particular, the development of imputed insurance in Kazakhstan, provides a number of recommendations to eliminate these problems and proposals for further development of the insurance market.

АНАЛІЗ ПОКАЗНИКІВ ДІЯЛЬНОСТІ СУБ’ЄКТІВ СВІТОВОГО РИНКУ СТРАХОВИХ ПОСЛУГ

The economic sense of insurance marker at the article is determined. The insurance market is relations of insurance service realization and possibility of insurance funds to create conditions of risk reduction and elimination for all participation of economics activities and all segments of the population. Problems of insurance companies’ activities were determined at many scientific sources. Activities of life insurance companies at Ukrainian market were determine. Analyze of insurance companies’ data on national market was made, the main problems and measure of creation situation on insurance market of Ukraine. The insurance brokers, their classification and their functions were determined. But at modern research there are not analyze of insurance companies’ activities on global insurance market. The main aim of article is analyzed of insurance companies’ activities on global insurance market, the global tendencies on global insurance market was determined. Also, this article is dedicated to analyze of insurance companies on wolds insurance services market. At the article the important data such as the ratio of real estate premiums to victims and the ratio of life premiums to annuities. As basic for analyze great insurance companies of German, Great Britain USA, France, Switzerland, Bermuda. Also were analyzed data of most great world insurance brokers. Also the data of activity of world property insurance and life insurance companies were analyzed. Was determined, that during 2019 and 2020 profit of world insurance brokers create. Also was determined, that during 2019 life insurance profit of world insurance companies was created. The traditional insurance is not more the main business of life insurance field. The influence of pandemic COVID 19, showed both positives and negatives effects. Pandemic show impotent of having protection against force mayor. That is why, the support increased as for customer and for companies. Very impotent for insurance company to offer digital communication of all aspects, because it is world tendency. It is very important to develop these tendencies all time.

ЎЗБEКИСТOН СУҒУРТА ТИЗИМИДА РАҚАМЛИ ТЕХНОЛОГИЯЛАРНИ ЖОРИЙ ЭТИШ ОРҚАЛИ СУҒУРТА БОЗОРИНИ РИВОЖЛАНТИРИШ ИСТИҚБОЛЛАРИ

This article examines the smart insurance technologies widely used in the global insurance market in the process of modern development. It also analyzes the smart technologies being introduced and used in Uzbekistan through the digitization and Internetization of insurance services. As a result of the analysis, the priorities for the use of digital and smart technologies in the insurance market of Uzbekistan were identified.

PROBLEMS OF DIGITAL INSURANCE DEVELOPMENT IN THE REPUBLIC OF ARMENIA

Today, almost all sectors of the economy use information systems, technologies, especially various artificial intelligence tools, the use of which leads to the emergence of such a term as digital insurance. Digital insurance does not have a clear definition, but in general it can be described as signing insurance contracts, reviewing, receiving information about an accident, and performing any other insurance-related activities using devices or systems. The article presents the definitions of digital insurance, an attempt is made to present and analyze the main insurance tools (internet, big data, chatbot, blockchain) that are used in the global and insurance markets of the Republic of Armenia. A numerical analysis of artificial intelligence tools of the global insurance market has been carried out. As the main direction in the development of online insurance, the dynamics of online insurance premiums, which characterizes the RA CMTPLI system, the share of online CMTPLI contracts of insurance companies in the total number of CMTPLI contracts and the share of online CMTPLI contracts in the total number of CMTPLI contracts (%). Also, issues were raised that impede the development and expansion of the RA digital insurance market.

AUTO INSURANCE: RUSSIAN AND FOREIGN PRACTICE.

This article discusses car insurance in Russia and in the world. Auto insurance in Russia has its own characteristics at the level of legislation. The article also discusses the types of motor transport insurance that are most common for the Russian and global insurance market.

Розвиток страхового ринку України в умовах трансформаційних змін

Abstract. The article substantiates the feasibility of ensuring the development of the insurance market in Ukraine in the context of digital transformations. It has been determined that the latest digital technologies are penetrating deeper into the global insurance market, without bypassing any area of activity, but the volume of the insurance market in Ukraine is several times less than in the developed countries of the world. The indicated factors which restrain the development of the insurance market in Ukraine and characterized existing problems of the insurance market lead to low confidence in the companies of the sector and do not allow it to develop properly. It has been established that in modern conditions of digital transformations, insurance companies widely use innovative technologies that ensure the achievement of both short-term effects and long-term competitive advantages. The directions of digitalization of the insurance market in Ukraine have been characterized and it has been substantiated that the processes of digital transformation based on the development of information technologies of insurance companies contribute to increasing competitiveness. In order to improve the situation in the domestic insurance market and maintain competitive positions, insurance companies should actively use European and world experience, introduce and change models of insurance functioning, and intensively introduce innovative technologies in insurance activities. The use of new technologies and management models in practice will increase the efficiency of the provision of insurance services, require insurance companies to develop new insurance products, taking into account the individual wishes of customers, and will also contribute to expanding the scope of using insurance as a method of risk transfer in an integrated risk management system, as well as will ensure the creation of a unique competitive advantage for those insurance companies that are able to introduce innovative digital technologies in accordance with the individualized requests of customers

The impact of covid-19 on global insurance market

The purpose of the paper is to present the changes occurred on global insurance markets during the current pandemic situation. The effects are largely felt through asset risks, weaker premium growth prospects, and also insurers’ long-term investment. Developed markets, particularly life ones, are likely to shrink in real terms as a result of the economic slowdown. Higher mortality rates due to the coronavirus pandemic are affecting the bottom lines of many life insurers. The main trends in this sector in last years, is based on the most important aspects such as, written premiums, and benefits paid, types of the life insurance contracts and density and penetration degree of the life insurance sector.

Insurance market as a segment of the EU financial market

The article examines the state of the insurance market, which is the largest investment investor in the EU. There is a high degree of concentration in the insurance market and the European insurance industry itself has a large share in the global insurance market. Various types of insurance activities are considered . Data on the volume of premiums are provided. New digital technologies, in particular the Internet system, widely used. The importance of regulating and supervising the activities of insurance companies in the EU financial market is emphasized.

ANALYSIS OF THE STATE AND DIRECTIONS OF DEVELOPMENT OF THE INSURANCE SERVICES MARKET IN UKRAINE

Determining the current state of the insurance market in Ukraine and identifying promising areas for its development. Analysis of the current state of the insurance market is based on methods of analysis and synthesis, induction and deduction. The study of prospects for the development of the insurance services market is based on the methodology of scientific abstraction. The current state of the insurance market is taken into consideration and the dynamics of its development are analyzed. It was found that the current state of the domestic insurance market in its institutional and functional characteristics does not fully meet the trends of the global insurance market. It is substantiated that the functioning of a powerful market of insurance services is an important source of accumulation of funds for their further investment in the state economy. Emphasis is placed on systematizing the function of the insurance services market. The analysis of the main indicators of the insurance services market is carried out. It is established that the indicators of the insurance services market development are insufficient and do not meet the needs of the national economy. The reasons for the decrease in the number of insurance companies in the insurance services market of Ukraine are revealed. insurance companies with foreign capital. It is determined that the reasons for the low level of insurance propagation are the low level of public confidence in insurance companies, lack of awareness of Ukrainians in the insurance sector, and their low capital. The result of the analysis of the state of the insurance services market for 2014-2019 indicates that in general its unsatisfactory condition, which is confirmed by low values of indicators. Reduced number of insurance companies operating in the insurance market, the lack of a unified state strategy for the development of the insurance market in the country, the instability of the economic situation in the country and low confidence in insurers among the population negatively affect the development of the insurance market in Ukraine. The main problems of the insurance services market of Ukraine and prospects of its development were determined. The need to develop an effective and comprehensive strategy at the state level for the development of the national market of insurance services and suggested ways to solve the problems of the modern market of insurance services in Ukraine. Practical significance. The tendencies of development of the market of insurance services of Ukraine are made

FORMATION AND WAYS OF IMPLEMENTING THE STRATEGY OF MODERNIZATION OF THE STATE REGULATION OF THE INSURANCE MARKET OF UKRAINE

The problems of formation of the strategy of modernization of the state regulation system of the insurance market in Ukraine are considered. It has been established that despite a considerable number of relevant proposals and generalizations on various aspects of improving the concept of the development of the mechanism of state regulation of the insurance market, there are no systematic comprehensive research on the problems of forming a strategy for modernizing the system of state regulation of the insurance market in Ukraine that would place this process on a strong theoretical ground and formulated the methodological principles for developing a strategy for modernizing the state regulation of the insurance market in Ukraine. It is proved that an important place in the system of regulation of the insurance market of any country is taken by the bodies of insurance supervision, which have the status of a state executive body. It is revealed that the features of insurance regulation systems used in different countries did not arise immediately, but as a result of long-term evolution, in some cases for several centuries. It is noted that the active role of the state in the insurance sphere is of particular importance for Ukraine, taking into account not only the transitional state of its economy, but also the geopolitical location, natural conditions, etc. It is proved that the system modernization of the state regulation mechanism in Ukraine is accompanied by the incompleteness and chaotic nature of the reforms. In the process of realization of transformation projects, two mutually exclusive development tendencies are dominated: on the one hand, reformers follow the pan-European models of the state regulation system, while, on the other hand, representatives of the political elite constantly emphasize the need to find a special national way of developing a mechanism of state governance. Strategies for developing the state regulation system of the Ukrainian insurance market are in many ways ideal analytical constructions, the implementation of each of them, even executed in the form of thoroughly developed documents, in practice faces the actions of various groups of subjects that correct the original plan. Implementation of the strategy of modernizing the state regulation of the insurance market will lead to complex changes for the insurance system, including the ability to adapt to changes in internal and external conditions. Adaptability is the most important property of any system: the higher it is, the higher, in other equal conditions, the long-term effectiveness of the system. Improvement of adaptive qualities will ensure the stability of the national insurance system, reduce the number and extent of hazards, and thus create positive opportunities for the development of state policy in the field of insurance, which, in turn, will affect the adaptation opportunities of the insurance market in the future. Thus, the adaptability of the insurance system is both a condition and a result of state policy in the field of insurance. The developed and selected strategy of state regulation modernization should ensure both the preservation of the critical parameters of the Ukrainian insurance market and the compliance of the planned measures with the conditions for maintaining the key critical parameters of the national insurance system. Given this, it is important to move from solution of tactical tasks and anti-crisis actions to development of future strategies. Integration of Ukraine's insurance market into the global insurance system - which has now gone beyond the scope of available-targeted control and is in a state of restructuring, chaotic and floating structuring and upgrading - requires a revision of the existing system of state regulation of the insurance sector in Ukraine with the replacement of it on the coordinating architecture. In this architecture, national institutions should develop and implement, at the international level, a common crisis management strategy for regulating and coordinating the global insurance market. This is primarily about the development of common legal rules in which it would be possible to control the functioning of insurance structures. Keywords : insurance market, state regulation, insurer, insurer, development goals, strategy of modernization of the state regulation system.

Comparative Analysis of Insurance Pemiums in Serbia and Bosnia and Herzegovina - Multiple Linear Regression Analysis Model

In the last few years, the global insurance market has shown a trend of concentration growth, which was conditioned by the processes of mergers and acquisitions in insurance. The aim of this paper is to make a comparative analysis of insurance premiums in Serbia and Bosnia and Herzegovina. Dynamic analysis of market concentration indicators calculated on the basis of absolute amounts of premiums indicates that the insurance market in Bosnia and Herzegovina is characterized by low concentrated supply, i.e. there is greater equality of market share in relation to high inequality and high concentration among market participants in the insurance sector of the Republic of Serbia. Having applied the multi-linear regression model in order to analyze the impact of selected macroeconomic indicators on the amount of insurance premiums in the period 2000-2017, it can be concluded that the greatest impact on the amount of the premium in Bosnia and Herzegovina had Gross Domestic Income and Wage and Salaries Workers. In the Republic of Serbia, the greatest influence on the amount of premium in the observed period had the Average Net Salary, Households and Final Consumption Expenditure and Gross Domestic Income.