Insurable Interest Research Articles

Estimating farmers’ willingness to pay for crop insurance with application of choice experiment: case study in South Gondar Zone, Ethiopia

PurposeThis study aims to estimate farmers’ willingness to pay for crop insurance, utilizing a choice experiment case study in the South Gondar Zone, Ethiopia.Design/methodology/approachPrimary cross-sectional data were collected in 2023 from 240 farm households. The choice experiment method was employed to elicit farmers’ willingness to pay for crop insurance. Five attributes, including monetary cost, were identified for the choice experiment, with two improved scenarios and a status quo presented to respondents. The mixed logit model and extended mixed logit model were used for analysis.FindingsThe econometric model indicated that, with the exception of one attribute, all were positive and statistically significant. Farmers showed a preference for improved scenarios over the status quo, demonstrating a willingness to pay for crop insurance. The extended mixed logit model revealed that factors such as livestock ownership, household head’s sex, family size, income, farming experience, crop risk exposure, and additional occupations significantly influenced farmers’ preferences for crop insurance.Research limitations/implicationsThe study’s sample size was limited to 240 farm households, which is relatively small. More reliable results could be obtained with a larger sample size. Another significant limitation is the study’s failure to account for institutional setups when assessing farmers’ willingness to pay for crop insurance.Practical implicationsAgricultural risk, particularly crop risk, is severe in the study area. The results suggest that farmers have a genuine need for risk mitigation mechanisms, such as crop insurance. The findings reflect farmers’ interest in crop insurance, indicating that responsible entities, whether governmental or private insurance companies, can readily implement crop insurance schemes.Social implicationsThe study has significant social implications, as the society in the study area is highly vulnerable to crop risk, which adversely affects their livelihood. Introducing a crop insurance scheme could enhance the welfare and livelihood of the local population.Originality/valueTo the best of our knowledge, this study is novel in both concept and methodology. Unlike previous studies, which focused on specific crop risks, this study considers multiple crop risks. The findings offer valuable insights for policymakers and other stakeholders involved in crop insurance. Understanding farmers’ preferences for crop insurance is crucial for designing effective crop insurance policies.

Awareness and Need for Dental Insurance in India: A Survey-Based Study Among Dental Health Care Professionals

ABSTRACT Background: Oral health is vital to overall well-being, but high dental care costs often restrict access, particularly in developing countries like India. Although dental insurance could alleviate these costs and enhance accessibility, it remains underdeveloped in Southeast Asia, including India. Objective: This study evaluates the awareness and perceived need for dental insurance among dental health professionals and students in India, focusing on their views regarding its role in improving care accessibility. Methods: An online cross-sectional survey was administered to 500 participants (dentists and dental students) at a dental college in Gandhinagar, India. Data from 474 completed responses were analyzed after excluding 26 incomplete ones. The survey covered personal demographics, insurance status, perceptions of dental care costs, and interest in dental insurance. Results: The survey revealed a significant demand for dental insurance. A substantial 85.3% of participants found private dental treatments costly, and 90.6% viewed dental insurance was as crucial as medical insurance. Furthermore, 76.7% showed interest in learning more about dental insurance. Conclusion: Integrating dental insurance into India’s healthcare system could enhance dental care access by lowering financial barriers. Increased awareness and education about dental insurance among dental professionals and students are essential to address existing gaps and improve oral health outcomes.

Comparative Study of XGBoost, Random Forest, and Logistic Regression Models for Predicting Customer Interest in Vehicle Insurance

In today’s competitive insurance market, accurately predicting customer interest in additional products, such as vehicle insurance, is crucial for optimizing marketing strategies and maximizing sales. This study presents a comparative analysis of three machine learning models such as XGBoost, RandomForest, and Logistic Regression to predict customer interest in vehicle insurance based on a dataset that includes demographic, vehicle, and policy-related features. The dataset was analyzed using five-fold cross-validation, and the performance of the models was evaluated using AUC-ROC, precision, recall, and F1-score. XGBoost demonstrated the highest recall (0.9525) and AUC-ROC (0.7854), making it the most effective model for identifying customers interested in vehicle insurance, though at the expense of lower precision (0.2585). RandomForest showed a more balanced trade-off between precision (0.3064) and recall (0.5341) but performed lower overall. Logistic Regression, while the most interpretable model, exhibited high variability in performance across different folds, with a lower average precision (0.2372). The findings of this research highlight that XGBoost is ideal for maximizing recall in high-volume campaigns, while RandomForest may be better suited for applications requiring fewer false positives. These results offer valuable insights into model selection based on business objectives and resource allocation.

해상적하보험계약상 피보험이익에 관한 판례연구: 영국법원의 Quadra v XL사건을 중심으로

Purpose: Recently, the United Kingdom’s court handed down an important judgement in Quadra v XL on whether an insured buyer, as a victim of fraud perpetrated by the seller, has an insurable interest in the goods (in this case, grain). This study analyzes the court’s ruling in Quadra v XL and derives some implications Research design, data, and methodology: This study uses textbooks, articles, statutory law, and common law of the U.K. Results: The court in Quadra v XL ruled that the insured did have an insurable interest in the unascertained goods, considering that the insured paid the seller for some or all of the goods, and also had a right to possession of the goods, even though neither the property nor the risk had passed to the insured. Therefore, this case provides some clarity as to the requirement of a valid, insurable interest in goods under marine cargo insurance. Conclusions: This case recognized and reaffirmed the trend whereby courts in the U.K. always lean in favor of an insurable interest. As a practical matter, this case further suggests it is important to conduct proper inspection at the warehouse, and to keep the inspection results, considering that the court places the most reliance on inspection reports when deciding that the goods corresponding to the warehouse receipts were in the warehouse.

Behavioral reasoning theory perspectives on voluntary social insurance: The roles of collectivism and long‐term orientation

AbstractVoluntary social insurance is part of Vietnam's social security system, aimed at stabilizing the lives of laborers, ensuring their safety and lifelong quality of life. To motivate workers to engage in voluntary social insurance, it is necessary to have a thorough comprehension of the fundamental factors that influence their behavioral intentions. Accordingly, this current study expands the framework of behavioral reasoning theory to assess consumers' intentions to purchase social insurance. The authors suggest an expanded behavioral reasoning model that includes the cultural values of consumers, specifically collectivism and long‐term orientation. The proposed model underwent testing through the utilization of structural equation modeling with a sample size of 518 individuals who expressed interest in voluntary social insurance in Vietnam. The findings of this study indicate that behavioral reasoning theory is suitable for explaining intentions to purchase voluntary social insurance, where behavioral intentions are influenced by “reasons for,” “reasons against,” and consumers' attitudes. Furthermore, the cultural values of consumers have an important effect on shaping their perceptions and attitudes towards voluntary social insurance. Therefore, this study has significant ramifications for individuals responsible for making decisions and creating policies who are interested in obtaining a more profound comprehension of consumer intentions about voluntary social insurance.

India Insured by 2047: The Role of Insurance Companies, Distribution Networks and Regulatory Frameworks

This research article discusses the role of three key pillars i.e., insurance companies, distribution network, and regulatory frameworks that contribute to the growth and stability of the Indian insurance sector. It presents the key drivers and challenges for India to achieve the target of ensuring universal insurance coverage by 2047. The study provides valuable insights for policymakers and other stakeholders by highlighting the role that insurance company can play to ensure greater accessibility of insurance products for all through underwriting and managing various insurance products to cater to the diverse needs of the Indian population. It emphasizes the importance of an efficient distribution network to have a wider reach and the significance of a regulatory framework in safeguarding the interests of both insurers and policyholders.

Insurance and economic growth nexus: A comprehensive exploration of the dynamic relationship and future research trajectories

AbstractAcademic interest in insurance and economic growth nexus has prospered in the last two decades. There needs to be more review‐based research in this area. We, therefore, reviewed the literature and presented future research directions helpful for the further development of the research field. This literature review seeks to enrich the discourse on insurance and economic growth through a comprehensive and detailed review of 126 articles covering 96 journals from 2004 to 2023. Using Theory, Context, Characteristics, and Methods (TCCM), a detailed analysis has been conducted on the prominent theories, research context, key variables, and the methodologies and analysis techniques employed in the literature over the past 19 years. Through content analysis, we present the findings across three knowledge dimensions related to insurance and economic growth: research focus, country focus, and insurance focus. Our research sheds light on under‐researched contexts, variables, and analytical techniques.

СЕЛЬСКОХОЗЯЙСТВЕННОЕ СТРАХОВАНИЕ: АНАЛИЗ СОВРЕ-МЕННОГО СОСТОЯНИЯ В РОССИИ И ПЕРСПЕКТИВЫ ЕГО РАЗ-ВИТИЯ

The article highlights the current trends, features of development of agricultural insurance in the Russian Federation. Undoubtedly, the interest in agricultural in-surance is determined by the desire to minimise risks, which are quite numerous in the field of agricultural production, which is especially characteristic of crop production, why this sector occupies the main share in agricultural insurance. The need to address the topic of trends, status and prospects of agricultural in-surance development is associated with the focus on ensuring food security and the special attention of the state to this issue after the adoption in 2022 of a spe-cial insurance programme for agricultural producers, primarily from the conse-quences of emergencies. The article gives a brief characteristic of the existing con-ditions of development of agricultural insurance in the Russian Federation, pro-vides an assessment of the volume of services, comments on the existing situation within the framework of the issue under consideration.

Moral Hazard Versus Adverse Selection On The People’s Business Credit Program In Indonesia

This paper discusses the behavior of providing bank credit to SMEs during the people’s business credit (KUR) program in Indonesia. Since it was launched in 2007, the average NPL for these loans has increased. This indicates the existence of moral hazard behavior in lending by banks. To prove this indication, this paper implements a threshold regression model. Data covers 38 participating banks, which were observed during Q1-2008 to Q2-2021. The results of data analysis show that moral hazard behavior is indicated when NPL below or equal to 5.87%, on the contrary, experienced adverse selection. Specifically, moral hazard behavior is dominant in the case of investment credit and local government- owned banks. In working capital loans and others, this behavior also occurs, but not as in the case of investment loans. Moral hazard and adverse selection behavior were not detected at all in stateowned banks, while in private banks only occurred at a low level. At the end of the analysis, we also consider the shock effects of the global financial crisis (2008), European crisis (2009), and the Covid-19 pandemic (2020-2021) on the threshold regression model, but the results are negative, thus strengthening our previous findings. In general, the factors that significantly determine the risk of non-performing loans in the people’s business credit program are the increase in credit growth, market share, deposit insurance interest rates, and economic growth as well as a decrease in the benchmark interest rate. However, the specifics are different, both in each type of credit and the type of participating bank.

Analysis of The Millennial View on Insurance as a Key Financial Priority Using K-Means and Decision Tree

Millennials, despite being the largest population segment in Indonesia, show little interest in insurance, with only 6-7% having coverage. This raises concerns about their financial preparedness and protection against unforeseen events. Many lack well-thought-out financial plans, focusing on immediate gratification and overlooking risk management, including insurance. This study aims to discover ways to revive millennials' awareness about the importance of insurance in achieving financial stability and well-being. This study employs a questionnaire for data collection and analyzes the data using k-means and decision tree algorithms. Based on the k-means algorithm and decision tree, it was found that many millennials lack insurance coverage. Reasons include lack of understanding, financial constraints, fear of deception, and considering insurance, not a priority. Young adults aged 21-29 showed a better understanding of insurance, but still, a significant portion remains uninsured. These insights can be used to develop educational programs and communication strategies that aim to bridge the awareness gap and increase insurance literacy among millennials

Using Google Trends to analyze interest in travel insurance

Using Google Trends to analyze interest in travel insurance

Опыт пенсионного обеспечения самозанятых в странах ОЭСР и возможности его применения в России

The processes of destandardization of employment and a reduction in the scope of traditional hired labor, which are actively developing in the modern labor market, create significant problems and imbalances in pension systems, exacerbating the negative impact of demographic factors. In the time of growth in various forms of self-employment, an urgent task of pension policy is to ensure a balance between the interests of the self-employed, standard and non-standard employees and the financial capabilities of the budget; between the sustainability of the pension system and the adequacy of pensions for all participants. The article considers the problems of pension provision for the self-employed in OECD countries and Russia. Various approaches to pension provision for the self-employed, their strengths and weaknesses, associated challenges and risks for pension systems are analyzed. Particular attention is paid to the possibilities of using foreign experience in Russia. There are limited opportunities to pay contributions for the majority of self-employed people and they lack interest in voluntary pension insurance due to the low size of their future pension. Attention is also drawn to the risk of outflow of self-employed people from the registered segment in the event of the introduction of mandatory pension contributions. It is concluded that in present day Russia it is advisable to maintain the voluntary participation of the self-employed in the pension system in combination with increasing motivation to join the long-term savings program by introducing additional preferences for the self-employed, for example, an increase in the terms and share of state co-financing.

Analysing the Potential of Life Settlements in Emerging Markets: A Systematic Review of Legal and Economic Considerations

With time, the law and economics of insurance have advanced from considering it solely as a security measure to recognising it as an asset class. Numerous companies now offer loans against these life insurance policies, accepting the ‘property’ nature of life insurance behind the veil (Doherty & Singer, 2003; Mancini & Murphy, 2012; Mazonas, Stallard & Graham, 2011). Recently the world witnessed sudden deaths at large scale during the COVID-19 pandemic. A study indicates that financial crisis is a major reason of acute stress and instability in adults’ lives (Karim & Shetu, 2023; PK, TK & PK 2021) In such crisis situations, the secondary market assignment of life insurance policies could have been a boon for any person facing financial difficulty or not having a living family member/nominee. The market for life settlements flourished during HIV-AIDS crisis in the USA and has shown steady growth since then in various jurisdictions of the world. However, in India, the doors for secondary market trading were closed in 2015 through a statutory amendment to the Insurance Act, 1938 presently in force in India. Contemporary academia is divided on necessity of the requirement of insurable interest on the secondary market assignment of insurance policies. Other legal issues such as moral hazard, and ethics of trading on life are debatable as well. The preliminary investigation revealed a scarcity of papers discussing these legal considerations around life settlements. However, among the top 10 countries 2023in the global life insurance ranking, five are emerging markets including India having immense potential for life settlements market (Anon, 2021). Consequently, the researcher conducted a scientific SLR using PRISMA Method, along with reviewing selected papers in full, focusing on the legal and related economic considerations, to produce valuable insights for the emerging market. This paper presents the sole effort to pursue SLR on legal issues and put them in a place with the aim to ignite the discussion on legal considerations of life settlements. Importantly, this paper considers India as an emerging market for reference and the USA as a benchmark for established market. This paper adopted a theoretical approach to fulfill the need for legal analysis complimented with secondary data analysis.

THE INFLUENCE OF COMPANY IMAGE, PREMIUM PRICES AND PRODUCTS ON PEOPLE'S INTEREST IN CHOOSING SHARIA LIFE INSURANCE IN PALEMBANG CITY

Company image, premium prices and products are important factors and are the goals of every company, including those in the insurance sector. Apart from being an important factor as the front guard for the continuity of the company's operation, the existence of this factor can support the increase in public interest in insurance, especially sharia life insurance in the city of Palembang. The research conducted aims to determine the influence of company image, premium prices and products on people's interest in choosing sharia life insurance in the city of Palembang, focusing on sharia life insurance customers in the city of Palembang who are or have been sharia life insurance customers in the city of Palembang as the population. . The method used in collecting data is through a questionnaire using a Likert scale. Through the characteristics of sharia insurance users with a period of less than 1 year to more than 5 years and customers who are no longer customers. The sample consisted of 120 respondents using purposive sampling technique. Path Coefficient shows that Company and Product Image have a positive and significant influence on people's interest. Meanwhile, the premium price has no positive and significant effect on people's interest in choosing sharia insurance in the city of Palembang.

Logistic regression modelling at insurance interest: Theory of planned behavior

Logistic regression modelling at insurance interest: Theory of planned behavior

RISK CATEGORY IN PERSONAL INSURANCE CONTRACTS: LEGAL ASPECTS

The article highlights the relevance of the topic of personal insurance in connection with the increased role of this type of legal relationship in the socio-economic life of Russia. The risk category in personal insurance is analyzed, as well as its relationship with the concepts of «insurance interest» and «insured event». The purpose of the entry of legal entities into the insurance legal relations of personal insurance is disclosed. It is noted that the risk category in property and personal insurance has a single legal nature, but at the same time it has some specific features in these types of insurance. The specifics of the insurance risk in personal insurance are revealed, which is related to the nature of the insured event as an event occurring precisely in the life of the subject. Both positive aspects of the development of insurance legislation on personal insurance and problematic aspects are noted.

POTENSI PENGEMBANGAN ASURANSI SYARIAH USAHA TANI PADI DI ACEH BESAR (PENDEKATAN ANALISIS SWOT)

Rice Farming Business Insurance (AUTP) is social insurance implemented by the government to provide benefits to its people, where this insurance can help rice farmers who experience losses due to attacks by plant organisms, outbreaks of infectious diseases, and other disturbances that cause crop failure for farmers. In general, the concept of Sharia AUTP can be carried out following the existing AUTP, but it needs to be adjusted to the basic principles of Sharia insurance. This study aims to identify and analyze the Strengths and Opportunities as well as the Weaknesses and Threats of the development of Rice Farming Business Insurance in Aceh Besar. The method used is descriptive qualitative analysis, with data collection techniques through interviews and documentation. The results of the study show that the development of sharia insurance for rice farming is in quadrant III which illustrates that sharia insurance for rice farming has a huge opportunity to develop in Aceh Besar, but on the other hand, it also experiences some internal weaknesses. The strategy that can be utilized in the development of sharia insurance for rice farming is the WO strategy, namely 1) Increasing the socialization of sharia insurance for rice farming to the public to increase farmers' interest in insurance, 2) The government needs to make special regulations governing sharia insurance for rice farming.
 
 Keywords: Sharia Insurance, Rice Farming Business Insurance, SWOT Analysis

Factors Influencing Public Interest in Choosing Sharia Insurance at PT. Asuransi Askrida Syariah Medan

The research was conducted at PT Asuransi Askrida Syariah Medan with the aim of finding out what factors influence public interest in choosing Sharia Insurance at PT Asuransi Askrida Syariah Medan. This study used quantitative methods; Data collection was carried out using primary data derived from the distribution of questionnaires. The results revealed that the product has a significant positive influence on the selection of Sharia Insurance interests. Price does not have a significant positive effect on the selection of Sharia Insurance Interests. While Promotion has a significant positive influence on the Selection of Sharia Insurance Interests. Products, prices, and promotions significantly affect the Selection of Sharia Insurance Interests.

Modelling Motor Insurance Claim Frequency and Severity Using Gradient Boosting

Modelling claim frequency and claim severity are topics of great interest in property-casualty insurance for supporting underwriting, ratemaking, and reserving actuarial decisions. Standard Generalized Linear Models (GLM) frequency–severity models assume a linear relationship between a function of the response variable and the predictors, independence between the claim frequency and severity, and assign full credibility to the data. To overcome some of these restrictions, this paper investigates the predictive performance of Gradient Boosting with decision trees as base learners to model the claim frequency and the claim severity distributions of an auto insurance big dataset and compare it with that obtained using a standard GLM model. The out-of-sample performance measure results show that the predictive performance of the Gradient Boosting Model (GBM) is superior to the standard GLM model in the Poisson claim frequency model. Differently, in the claim severity model, the classical GLM outperformed the Gradient Boosting Model. The findings suggest that gradient boost models can capture the non-linear relation between the response variable and feature variables and their complex interactions and thus are a valuable tool for the insurer in feature engineering and the development of a data-driven approach to risk management and insurance.

Application Of The Utmost Good Faith Principle In Life Insurance Business Management In Indonesia

The study focused on the purpose of this writing is to find out the application of the principle of utmost good faith in life insurance. The research method used in this study is to use data collection methods in library research or library research. In this literature study the author obtains the materials and library materials needed by studying books, writings, journal citations and statutory and legal products that are related to the subject matter according to topics in Indonesia so that it can be concluded that: first, legal principles in insurance coverage include insurable interest, utmost good faith, indemnity principle, subrogation principle, causaliteit principle, contribution principle, cause principle, follow of fortune. Second, the types of risk in insurance are pure and speculative risk, diversifiable and non-diversifiable risk, company risk, systemic risk, financial and non-financial risk, individual and group risk, static and dynamic risk. Third, the application of the principle of utmost good faith in life insurance is very important, because if there is submission of information and information that is incorrect, it can result in the insurance agreement being cancelle.