Insurance Guarantees Research Articles

Risk-Based Premiums of Insurance Guarantee Schemes: A Machine-Learning Approach

Introduction/Main Objectives: This study explores the application of machine-learning techniques to risk-based premium calculations for insurance guarantee schemes within the Indonesian insurance market. This study aims to develop a risk-based premium calculation model using machine-learning techniques in the Indonesian context. Background Problems: A gap exists in determining risk-based premiums for both the life and non-life insurance sectors within the Indonesian insurance market. Identifying and understanding the key variables that significantly influence risk-based capital (RBC) is important, and this research addresses this need. Novelty: This paper is the first to apply machine learning to calculate risk-based premiums in the context of the Indonesian insurance market. The distinction between the life and non-life insurance sectors in terms of the importance of its variables and itsselection of an optimal model further enrich its unique approach. Research Methods: We employed gradient-boosted and decision-tree models to identify key factors impacting risk-based capital. Furthermore, we leveraged clustering techniques to categorize companies into distinct risk tiers, aiming to enable more precise risk-based premium rate calculations. Finding/Results: The findings reveal significant differences between the life and non-life insurance sectors in terms of key variables that impact their risk-based capital. These insights lead to the categorization of insurance companies into distinct risk tiers whichhelps to more accurately calculate risk-based premiums. Conclusion: Machine learning can serve as a powerful tool in refining insurance risk management practices, ultimately benefiting insurers, policyholders, and regulators alike.

Страховий ринок, ринок страхування і ринок страхових послуг: наукові погляди, нове розуміння і визначення

Educational programs need to be updated and improved, taking into account the latest legislative changes to correctly reflect the transformations of financial services markets and the evolution of the main concepts of financial science. This affects the quality of educational training, the scientific component in higher education institutions of Ukraine, and the professional competence of future practitioners and scientists. The article aims to reveal, improve the essence and formulate the definition of the concepts of the market of insurance services, insurance market, and market of insurance, taking into account the new legislation in the insurance field and achievements of financial science. The methodological basis of the research is the position of the theory of open economy, as well as the methods of system analysis. The study includes four sections: the first section provides a brief review of scientific works on the definition of the insurance market; the second section contains the analysis of Ukrainian insurance legislation regarding the insurance market; the third section presents the quantitative calculations and a new understanding of basic concepts; in the last subsection, the authors explain how the concepts of the insurance market and the market of insurance services differ, highlight the activities of the regulatory bodies of the insurance market, and show the unresolved problem of insurance guarantees in the market. The analysis points to the still unsolved problem of state guarantees of returning insurance premiums to clients if the insurer ceases insurance activity. In this regard, the expediency of creating the Insurance Guarantee Fund, which should become a participant in the insurance market, is argued. It was found that the concepts of the market of insurance services and the market of insurance are identical. The concept of the insurance market covers the market of insurance and is distinguished by the fact that there are regulatory bodies in the insurance market. Based on the provisions of the open economy theory and the analysis of behavioral aspects of market participants, the work proposes new definitions of the concepts of the market of insurance services and the insurance market.

Willingness to pay for National Health Insurance Services and Associated Factors in Africa and Asia: a systematic review and meta-analysis.

Universal health coverage (UHC) is crucial for public health, poverty eradication, and economic growth. However, 97% of low- and middle-income countries (LMICs), particularly Africa and Asia, lack it, relying on out-of-pocket (OOP) expenditure. National Health Insurance (NHI) guarantees equity and priorities aligned with medical needs, for which we aimed to determine the pooled willingness to pay (WTP) and its influencing factors from the available literature in Africa and Asia. Database searches were conducted on Scopus, HINARI, PubMed, Google Scholar, and Semantic Scholar from March 31 to April 4, 2023. The Joanna Briggs Institute's (JBI's) tools and the "preferred reporting items for systematic reviews and meta-analyses (PRISMA) 2020 statement" were used to evaluate bias and frame the review, respectively. The data were analyzed using Stata 17. To assess heterogeneity, we conducted sensitivity and subgroup analyses, calculated the Luis Furuya-Kanamori (LFK) index, and used a random model to determine the effect estimates (proportions and odds ratios) with a p value less than 0.05 and a 95% CI. Nineteen studies were included in the review. The pooled WTP on the continents was 66.0% (95% CI, 54.0-77.0%) before outlier studies were not excluded, but increased to 71.0% (95% CI, 68-75%) after excluding them. The factors influencing the WTP were categorized as socio-demographic factors, income and economic issues, information level and sources, illness and illness expenditure, health service factors, factors related to financing schemes, as well as social capital and solidarity. Age has been found to be consistently and negatively related to the WTP for NHI, while income level was an almost consistent positive predictor of it. The WTP for NHI was moderate, while it was slightly higher in Africa than Asia and was found to be affected by various factors, with age being reported to be consistently and negatively related to it, while an increase in income level was almost a positive determinant of it.

Rent Guarantee Insurance

Rent Guarantee Insurance

Rent Guarantee Insurance

Rent Guarantee Insurance

SOCIO-ECONOMIC NATURE AND THEORETICAL FOUNDATIONS OF COMPULSORY INSURANCE

Currently, it should be considered as a system of economic relations related to the provision of mandatory insurance guarantees and measures against various crises, which involves the formation of insurance funds at the expense of insurance premiums of legal and natural persons and their subsequent use in compensation for damages caused by the occurrence of insurance events

The Impact of the Bankruptcy of the Insurer Operating in the EU under Freedom of Establishment Rules on the Performance of the Insurance Guarantee Fund in the Compulsory Motor Third-Party Liability Insurance System

Cross-border activities of European companies, including insurance undertakings, constitute the major component of EU legal system. The freedom of establishment and the freedom to provide services rules are the crucial foundations of the single internal market, as they enable EU entrepreneurs to take up and pursue economic activity in the territory of another Member State. Unfortunately, the EU market has its weaknesses, one of which has been recently experienced by the Polish insurance market. This is due to the lack of a uniform guarantee system which would coherently deal with the issues related to the European insurer’s insolvency and, above all, to the settlement of claims of entitled persons and to the payment or refund of benefits, which has particular consequences for entitled persons holding motor third-party liability insurance, being the most popular insurance product.Given the above, the performance of the Polish Insurance Guarantee Fund is of the utmost importance. The legislator has failed to precisely regulate several issues related to the organisational aspects of the institution’s activities of in the event of bankruptcy or compulsory liquidation of an insurance company operating in Poland on a cross-border basis. Therefore, some demands for amendments to the Compulsory Insurance Act have been presented. The most urgent demand, however, is about providing for unambiguous method for determining which Member State’s guarantee scheme should satisfy the claims of entitled persons, i.e. whether it should be the scheme of the insolvent or bankrupt insurer’s home Member State or rather the scheme of the Member State where it conducted its cross-border operations. Besides, the determination of the mode of reimbursement by the guarantee scheme of the insolvent or bankrupt insurer’s country of origin will increase the level of responsibility of supervisory institutions of that country for the operation of entities subject to their supervision and conducting cross-border business.

UTILISING WARRANTY AND INDEMNITY INSURANCE TO ADDRESS ASYMMETRIC INFORMATION

Although effective due diligence has been made in acquisitions, many legal problems arise due to the fact that there are inaccuracies and misrepresentations in the statements made by the seller after the closing due to asymmetric information. The paper mainly analyzes the importance of the spread of declaration and guarantee insurance as a solution to these problems. Merger and acquisition initiatives are gaining more and more intensity at the national and international level. Compensation responsibilities arising from the violation of declarations and warranties, which are frequently encountered in this process, are among the issues that buyers and sellers fear most. In this context, it is thought that the dissemination of declaration and guarantee insurance is one of the most effective ways to neutralize this risk. Declaration and guarantee insurance acts as a bridge between the protection demands of the buyers and the aims of the sellers to provide a clean exit. Especially in the case of mergers and acquisitions, it helps the contracting parties to minimize their risks by indemnifying the financial losse that may arise due to the declarations and warranties presented regarding the relevant share and the target company by the insurer. With the transfer of the indemnity responsibility arising from the declaration and warranty violation of the seller after the closing to the insurance company, the parties have placed the sales process on a more secure basis. While the buyer has access to the assurance of indemnifying the financial losses arising from the violation of the declarations and commitments presented to him about the share subject to the sale and the target company from the insurance company, the seller will have the opportunity to transfer his portfolio risk-free by transferring his post-sale responsibilities to the insurer. For this reason, declaration and guarantee insurance are frequently preferred by strategic investors, especially hedge funds.

전세 보증금반환 보증보험제도의 개선사항에 관한 연구

If a home tenant does not receive a deposit back after the contract is terminated, a lease deposit return guarantee system is in effect to protect it, but there are still many aspects to be improved. In this study, we would like to present the direction of improvement of the lease deposit return guarantee system as follows.
 First, when a tenant applies for guarantee insurance, there is still a lot of time delay. In the future, if the tenant applies for a lease registration order, and if the tenant applies for guarantee insurance, the guarantee agency must check only the necessary matters such as the house's brightness and payment in advance.
 Second, in signing up for guarantee insurance, the limitation of the deposit should be deleted so that all tenants can use this system if necessary.
 Third, if there is a change in the size and target of application to improve the system, it should be applied only to new leases, and the previous matters should be applied to renewed leases. This is because if it is also applied to renewed leases, there may be many cases in which guarantee insurance cannot be subscribed while being renewed.

대규모 전세사기(빌라왕)에 대한 공법적 규제방안

Since the second half of last year, large-scale Jeonse lease fraud cases called “Villa King” and “Villa God” have been revealed one after another. The term “rental fraud” can be understood as “an act of stealing a lease deposit by deceiving a tenant (tenant) by those involved in a lease contract, such as a landlord (tenant), a builder, a broker, or a sales agent”. Most of the so-called “King of Villas” and “Billasin” defrauded tenants of their Jeonse lease deposits in a similar way, mainly targeting new villas or tenants of multi-family homes. The large-scale Jeonselease fraud occurred because of the difficulty in grasping the market price of new villas, the corruption of pre-sale agencies and licensed real estate agents, and the loopholes in the Jeonse lease loan and Jeonse lease guarantee insurance system. The problem of Jeonse lease fraud has existed before, but in recent years, Jeonse lease fraud has occurred nationwide and systematically because a large number of pre-sale agents, unqualified licensed real estate agents, and brokerage assistants have actively attracted tenants. Due to this Jeonse lease fraud, the Certified Brokerage Act was revised to prevent unqualified licensed real estate agents from operating, but there are no measures or regulations for sale agencies and real estate consulting companies. Therefore, it is hoped that the legislation for the sale agency business and real estate consulting business will be reorganized as soon as possible so that those with expertise and responsibility can mediate and protect the property of the people. The recent large-scale lease fraud is a complicated combination of insufficient tenant protection, guarantee insurance and lease loan system weaknesses, and legal and institutional problems of licensed real estate agents and real estate consulting companies. The large-scale Jeonse lease fraud has caused great pain and confusion, especially to the common people, and it also makes us think about the principles of private autonomy and the limitations of government intervention. The principle of private autonomy means that individuals can make their own decisions on matters related to them by respecting human dignity and values, and are also responsible for the decisions they have made. But no individual, no organization, no state is complete, and is free from unreasonable decision-making and unethical deviations and corrupt practices. And it grows through trial and error such as unreasonable decisions and corruption. I sincerely hope that the pain and confusion experienced by our society will be an opportunity to sublimate into an advanced housing welfare system and real estate transaction system.

Implementation of Consumer Legal Protection Against Pillages of Hajj/Umrah

Consumer protection is crucial in ensuring the fulfillment of consumer rights, especially as the modern economy expands, leading to increased needs in daily life. Intense competition among businesses can result in some consumers falling victim to fraudulent practices. A notable example is the growing number of travel agencies organizing Umrah pilgrimages, some of which engage in unlawful activities, causing significant losses for prospective pilgrims. The introduction of Regulation No. 8 of 2018 by the Minister of Religion has established a solid foundation for safeguarding Umrah pilgrims' interests. This regulation covers essential aspects such as health protection, life insurance guarantees, incident management, and the handling of missing pilgrim documents during the pilgrimage journey. It has significantly improved the protection offered to Umrah pilgrims. To further enhance consumer protection, it is advisable for the government to reevaluate its policies regarding the organization of the Hajj/Umrah pilgrimage. Specifically, there should be a thorough examination of the separation of roles between regulators and operators in this sector. Such separation would help ensure transparency, fair practices, and a higher level of accountability, thereby enhancing the overall protection of consumers' rights and interests.

Shareholding relations between banks and insurance companies in Algeria: an overview

Purpose. This study aims to analyze the overlap of shareholding between banks and insurance companies in Algeria, whose commercial activities are not necessarily the same, but functional complementarities exist. The method used in this paper is an inventory of cases where a financial institution is a shareholder of another, following several reforms applied to this market since the 1990s.
 Results. Regarding the shareholding matrices between financial institutions in Algeria, it was found that the intervention of the public sector is the most dominant, unlike the private and foreign sector. The study also showed that the behavior of banks and insurance companies in terms of capital participation is mainly linked to the legal measures introduced in Algeria after the opening of the banking and insurance market to private and foreign operators, essentially aimed at the development of the country. As well as the economic interest of complementarity, since bank financing is usually provided by an insurance guarantee, in addition to the introduction of bancassurance, which allows marketing of insurance products through the cash desks of banks.
 Scientific novelty. The literature review has shown that the subject of shareholder relations between financial institutions refers to a new perspective of the market vision, the core of which is the bank. The analysis is carried out from the perspective of building an updated picture of the capital structure of these financial institutions in Algeria.
 Practical value. The development of shareholding matrices between banks and insurance companies in Algeria, helps to understand the nature of the functional complementarity between these financial institutions, and also explains their strategic behavior with respect to the market.

전세사기 발생원인 및 법적 방지방안에 관한 연구

In the last 2~3 years, the sale price of real estate has plummeted, and the news about the crime of rental fraud continues day after day. In this situation, the contents of the government’s recent measures about rental scam can be broadly summarized as prevention, support, crackdown, and strengthening of punishment. Among them, preventive measures include reducing the pre-tax rate subject to tax return guarantee from 100% to 90%, and preventing senior mortgage loans after the contract by providing information on each stage of the contract. If the landlord enters into a contract for the sale of the leased object with a third party during the rental(or lease) period, preventive measures such as requiring the tenant to notify the tenant in advance must be written in the standard contract and provided by the Association of Certified Realtors. On the other hand, it seems necessary to reconsider measures such as providing the credit information of the landlord to individuals such as authorized brokers or lowering the rental price rate in connection with the purchase of rental guarantee insurance. In addition, it is necessary to regulate certified brokers and real estate consulting firms that lead real estate transactions in close contact with the general public, and it is necessary to create institutional conditions for the general public to conduct real estate transactions transparently.

지식산업센터 개발사업의 리스크 요인 및 관리방안 연구

1. CONTENTS (1) RESEARCH OBJECTIVES The purpose of this study is to preemptively explore the risk factors derived from the development process of the Knowledge Industry Center, which has recently been in the limelight as a new development project product, and to derive risk management measures for them. (2) RESEARCH METHOD As a research method, multi-level decision-making techniques (AHP and Fuzzy-AHP analysis methods) were used to analyze the importance of risk factors in each development stage and to derive risk management plans. (3) RESEARCH FINDINGS Risk management measures in order of importance include securing a construction company with recognition and brand, monitoring policy trends and adjusting business timing by development stage, establishing and verifying plans in preparation for product demand, blocking disputes through guarantee insurance, etc., and reducing risks through interest sharing. 2. RESULTS As a result of the analysis, it was confirmed that the overall importance of AHP and Fuzzy-AHP adjusted overall importance were similar in rank by risk factor. The top 5 risk factors as a result of importance are failure to secure a construction company with high recognition and brand, marketing planning, failure to select a project start time due to failure to predict the real estate economic downturn, failure to set an appropriate development scale that does not consider the future demand of the Knowledge Industry Center, failure to secure business partners (equity investors, financial companies, construction companies), and insufficient funding plan to secure project costs (bridge loans, main PF) appeared in order.

QUO VADIS: LEGAL CERTAINTY OF INFORMAL WORKER THROUGH MANPOWER ACT

Issue related to legal protection policies for informal sector workers in Indonesia still leaves a lot of debate among our society. The basis of this employment is in Law Number 13 of 2003 concerning Manpower which is further perfected and becomes a new hope for workers in Indonesia, this hope is stated in Law Number 11 of 2020 concerning Job Creation. However, the regulation needs to comprehensively regulate the existence of informal sector workers in Indonesia. Informal workers received no guarantees or protection; many had sum-proportional wages, were found to be physically ophysically abused, and had low welfare. This study aims to analyze legal protections for informal sector workers in Indonesia. This research is normative legal research that uses a legal and conceptual approach. The data used is secondary data consisting of primary, secondary, and tertiary legal materials. Data collection techniques in this study were carried out with a review literature study and then analyzed with a qualitative descriptive method. This study's results show that a legal vacuum (rechtsvacuum) regulates the existence of informal sector workers in Indonesia. It is inherent that informal sector workers receive more attention from the government as they are the largest group of workers in Indonesia. If analyzed with 'triadism law' theory, the current legal regulations in Indonesia are considered not to have fulfilled the elements of the purpose of law itself. Therefore, with that in mind to ensure the rights of informal sector workers, it is necessary to have clear rules and guarantee workers' rights including health insurance guarantees, legal umbrellas, environmental empowerment, welfare, and social protection.

Safety Warning! Decentralised and Automated Incentives for Disqualified Drivers Auditing in Ride-Hailing Services

Since 2011, the private ride-hailing companies Didi (2019), Uber (2019) and Lyft (2021) have expanded into more and more cities. These ride-hailing services (RHS) bring convenience to our life; however, at the same time they, also raise security concerns for users. For example, several recent news items show that a considerable number of registered drivers whose licenses have been revoked are still taking RHS orders on the respective platforms; this phenomenon directly leads to insecurity on part of its users and the bad reputation of the ride-hailing service provider (SP). The traditional solution to solve this problem is to periodically check the validity of the drivers’ licenses; however, it is a considerably time-consuming and costly process since the SPs have to manually interact with the governing authorities. Therefore, in this paper, we have presented an auditable self-sovereign identity system (named AudiSSI), which provides an efficient approach for the SPs to manage their registered drivers’ qualifications in a decentralized and automatic manner. Further, using smart contract technology, we propose a safety guarantee insurance in the form of an auditing contract to enable the RHS rider to check their driver's qualifications before the trip starts and get incentives once they detect a disqualified driver. We designed an incentive mechanism and have provided a game theoretical analysis. Finally, we implemented a prototype of AudiSSI and deployed it on Hyperledger Indy and Fabric to show that self-sovereign identity system for RHS driver with qualification auditing is efficient and technically feasible.

A Regulamentação da Nova Lei de Licitações: Definição da Lógica Institucional Prevalente em um Campo

ABSTRACT Objective: the present research analyzes how regulatory definitions occur in a field, in which participants defend multiple logics in the public procurement of large-scale engineering works and services, with a focus on the requisition of guarantee insurance. It also discusses a take-back clause and the percentage of the contract value to be insured. Theoretical approach: this work is part of the discussion about how an institutional logic is constituted, given the competition between multiple logics in a field. Method: the research is focused on discussions relevant to the field. Data collection was carried out through a documentary survey of the analysis of speeches in Congress, as well as interviews with relevant actors in the field using a semi-structured script. Results: the conflicts between logics are resolved through combinations with elements from other field logics. They emphasize the power of actors’ coalitions to define regulatory issues. The study, thus, pointed out how the participants managed to reduce the influence of the logic defended by the insurance market, in favor of the interest of construction companies in the drafting of the project, showing that different market logics can contradict one another. Finally, elements exogenous to the logic under construction are fundamental in its formulation. Conclusions: the theoretical contribution of the study indicates that the institutional logic that becomes prevalent in a complex field is the result of the imposition of a coalition of actors combining elements from distinct logics. However, the coalitions may be different for each of the questions examined.

Problemy orzecznicze Krajowej Izby Odwoławczej

The article is of a scientific and research nature and presents concisely the problems related with the case law of the National Appeals Chamber (Pol. Krajowa Izba Odwoławcza ). On 5 December 2007, the National Appeals Chamber was established, also referred to as the Chamber, which replaced Arbitrator Teams in hearing the appeals. Each year, the Chamber issues a total of 2,500 to 3,000 judgments, which are essentially the fundamental pillar of the functioning of the public procurement system. The adjudication difficulties that have arisen over the years and remain valid are: vagueness of the legal regulations, lack of transitional provisions, frequent law amendments, unusual speed of proceedings and, above all, marginal instance review of the decisions of the Chamber. However, judicial uniformity has been achieved on several important issues, thanks to resolutions passed by the Supreme Court. It was concluded that the determination of the gross price in the tender, taking into account the incorrect rate of tax on goods and services, constitutes an error in the calculation of the price if there are no statutory conditions for a mistake The ground for an appeal against the choice of the most advantageous tender may also include failure to exclude an economic operator who has submitted a tender chosen by the contracting entity or failure to reject a tender that is subject to rejection. The Supreme Court ruled that if a tender is submitted by a consortium, the correctness of the bid bond in the form of an insurance guarantee would be determined by the content of the guarantee. Uniformity of case law may be ensured by the appointment of a single court having jurisdiction in public procurement matters at second instance. It would also be helpful to organise specialist training at the highest substantive level.

Penalty Points for Violation of Traffic Rules versus Motor Insurance Premium. Analysis of New Legal Solutions

An amendment to the Polish Road Traffic Code introduced a possibility for the Insurance Guarantee Fund and insurance companies (offering motor liability and motor hull insurance) to access information in the Central Drivers Registry relating inter alia information concerning road traffic offences and to penalty points imposed as a result of committing such offences. Insurance companies may consult the Registry with the Funds assistance. At the same time, under the amended Polish Insurance and Reinsurance Act, insurance undertakings may process those data (i.e. driving offences or violations of road traffic regulations and penalty points issued as a result thereof) only for the purpose of insurance risk assessment and pricing with a view of concluding motor insurance contracts (excluding carrier's liability insurance). Similar solutions have been adopted in other countries, including EU Member States. The article is an attempt at explaining and conducting an initial evaluation of the new mechanisms, as well as at answering a question about possible impact thereof upon motor insurance premiums.

Non-standard Insurance Recourse under Article 43 of the Act on Compulsory Insurance, the Insurance Guarantee Fund and the Polish Motor Insurers' Bureau

Recourse claims are an essential aspect of insurance practice. This article concentrates on the institution of a non-standard recourse, which plays an unusual role in the legal system. The author analyses cases provided for by law in which a claim for the non-standard recourse arises. Various situations are discussed where damage has been caused by the driver: intentional damage, drink-driving, driving in a state of intoxication or under the influence of other psychotropic substances. Moreover, the following premises have been examined: taking the possession of a vehicle as a result of committing a crime, lack of driving licence and the failure to stop at the scene of the accident by the offender. The characteristic features of those claims have been highlighted in line with the views expressed in case law and jurisprudence. The author advances the thesis that non-standard recourse claim have an autonomous basis and specific nature, with both resulting from the specific provision of the Act.