Insurance Activities Research Articles

Optimization of Insurance Brokerage Institutions in Realizing the Trust of the Indonesian Community

Public trust in the Indonesian insurance business is shaken by the crisis that rocked multiple insurance companies. This study investigates insurance brokerage institutions’ involvement in Indonesia’s insurance activities and how to improve public trust. This research uses normative legal research by examining library materials or secondary data. In contrast, the nature of the research is analytically descriptive, depicting the existence of insurance brokerage institutions in the Indonesian insurance industry for further analysis to complete the picture of brokerage companies’ role in improving the industry. The research found that insurance brokers help insureds choose an insurance carrier, handle the claims process, and resolve claim disputes, making them crucial to Indonesian insurance. Brokers can gain public trust by increasing insurance literacy, transparency of insurance product information, helping consumers resolve insurance claims and advising the Financial Services Authority on insurance regulations. To gain public trust in insurance, the insurance industry should prepare a more effective and comprehensive set of regulations to prevent legal uncertainty and provide adequate legal protection to customers. At a micro level, every regulation prepared by the company can provide certainty. The company’s ethics and corporate governance policy is explicit.

Using magnetic marketing tools to enhance the financial performance of the Iraqi general insurance company

The research aims to use magnetic marketing tools across its dimensions of (message, market, and media) to enhance the financial performance of the Iraqi General Insurance Company, as well as to identify the strengths and weaknesses in the company’s performance. Adopting the descriptive approach And Analytical Data and information were collected through the financial statements, annual reports and statistics of the company under study, relying on the annual reports issued by the Iraqi Insurance Bureau, as well as the performance evaluation indicators issued by the Federal Financial Supervision Bureau, represented by (the index of relative importance of insurance activity revenues, and production follow-up indicators) The fulfillment of plans, the development of production, the productivity of producers, the number of documents, and the loss rate) for the years (2018-2022). The research reached a set of results, the most important of which was that adopting magnetic marketing tools would enhance the revenues of insurance activity, reflected in the financial performance of the researched company.

The Relationship between Activities of the Insurance Industry and Economic Growth: The Case of G-20 Economies

The aim of this study is to examine the impact of developments in the insurance sector on economic growth. This study examines an annual dataset spanning 1992 to 2022 from ten countries within the G-20 economies, for which data is reliably accessible. The analysis employs panel cointegration and panel causality tests to explore the underlying relationships. The results show that the activities of the overall insurance sector have a positive effect on economic development, while non-life insurance activities, as a sub-component of the insurance sector, also demonstrate a similar impact. Furthermore, findings indicate the existence of a bidirectional causality relationship between economic development and non-life insurance premiums. This study provides various recommendations to policymakers in the process of developing policies on the growth of national economies.

Правовий статус страховика як учасника договірних страхових відносин

Despite the regulation of insurance relations by Ukrainian legislation, due attention from both scientists and legislators requires the issue of improving the legal status of participants in insurance relations, determining their place in such relations in order to effectively protect their rights and interests. The purpose of the article is to study the legal status of the insurer as a participant in insurance contractual relations, analyze existing approaches to its determination, establish the features of the insurer's legal personality and provide proposals for further improvement of legislation in this area. A characteristic feature of an insurance contract as an independent type of civil legal obligations within the group of contracts for the provision of services is that the conclusion of insurance contracts is directly the subject of activity of specially authorized participants in civil relations – insurance organizations (insurers). It has been established that the insurer, as a participant in insurance contractual relations, is a legal entity that, being specially created to provide insurance services and having received a license for this in the prescribed manner, undertakes the obligation, in accordance with the terms of the contract or an indication of the law, to provide insurance to the insured for a certain fee, to carry out an insurance payment (insurance compensation) to the insured or beneficiary as a result of the occurrence of a certain event (insured event). In insurance contractual relations, the insurer can only have a legal entity on its side, which is empowered to carry out insurance activities only after receiving a special permit (license), which indicates that legal entities - insurers have special legal personality. An insurance organization is endowed with the general legal capacity of a legal entity with a special scope of legal capacity as a financial institution. Attention is drawn to the fact that a significant factor in the modernization of the civil legislation of Ukraine today is the global trend towards unification and harmonization of private law regulation, the formation of optimal legal norms for many areas of private law relations, including insurance. In this regard, the need is justified to determine at the legislative level the requirements for the insurer when it carries out certain types of compulsory insurance, which have their own specifics and provide for the creation of increased guarantees of protection for those persons who, due to objective circumstances, are exposed to increased risk and the extension of insurance protection to cases possible violation of public interests by the method of guaranteeing receipt of insurance payment (insurance compensation). It is concluded that the recodification of the civil legislation of Ukraine opens up prospects for a qualitative update of the legal regulation of insurance contractual relations and will contribute to the development of the provision of insurance services, strengthening of legal institutions in the field of insurance, raising the standards of providing insurance services and ensuring adequate protection of the rights of participants in insurance relations

The state of the property insurance market of Ukraine in the conditions of war

Introduction. The paper highlights the theoretical and methodological foundations of the functioning of the property insurance market in Ukraine. It was determined that property insurance is of crucial importance for raising the standard of living of the population and creating a strong system of protection of state finances, ensuring the stability of the country's economy. The purpose of the paper is to determine the essence of insured property and research the state of the property insurance market of Ukraine during the period of martial law. Results. The current trends in the development of property insurance in Ukraine are considered. The paper examines and analyzes the current state of the property insurance market of Ukraine and the main indicators of insurance activity for 2021-2023. It was determined that property insurance is the largest branch of the insurance market of Ukraine, and despite all the problems related to the war, the Ukrainian insurance market continued active recovery in 2023. The main problems of the property insurance market, which restrain its development, are identified, directions for its improvement and further development are proposed. In order to develop the insurance property of Ukraine after the war, it was proposed to soften the regulatory requirements for calculating contributions, reduce the tax burden on insurance activity, strengthen the control of insurance payments, and ensure the possibility of preferential lending. Conclusions. Analysis of the development of property insurance in Ukraine in recent years allows us to come to the disappointing conclusion that the war significantly affected the development of property insurance, there was a significant decrease in insurance premiums and insurance payments in 2020. But in 2023, the property insurance market of Ukraine began to grow, which indicates its readiness for adaptation and recovery in the post-war years.

A Novel Hybrid ANFIS-NARX and NARX- ANN models to Predict the profitability of Egyptian Insurance Companies

The use of fuzzy logic models with machine learning (ML) models have become common in many areas, especially insurance field. This study aims to compare between non-hybrid models such as artificial neural network (ANN) model, adaptive neural fuzzy inference system (ANFIS) model, nonlinear auto-regressive external input (NARX) model, and the following hybrid models (ANFIS-NARX) and (NARX-ANN) to predict the profits of the insurance activity which represent the important indicator of the good performance of Egypt's 39 insurance companies in the period from 1st January 2009 to 31 December 2022 , monthly .This prediction based on the following factors (net premiums, reinsurance commissions, net income from earmarked investments, other direct income, net compensation, production cost commissions and general and administrative expenses) that help decision makers to make appropriate decisions . The results found that the (ANN) model is given good results compared with the following models (ANFIS), (NARX), hybrid (ANFIS-NARX) and (NARX-ANN) models according to the following prediction accuracy measures (RMSE, MAPE, MAE and Theil inequality). The explanatory ability (R2) was appeared (0.79, 0.61) respectively for training and testing phases in persons insurance companies. The explanatory ability also was appeared (0.83, 0.68) respectively in property insurance companies.

PUBLIC AWARENESS OF DEPOSIT INSURANCE AND INVESTOR COMPENSATION SCHEMES IN BULGARIA

The purpose of deposit insurance and investor compensation schemes is to protect the clients of banks and investment intermediaries by providing compensation in the case of unavailability of clients’ deposits or assets. Generally, knowledge about the activities of both schemes is rather limited by the public. This is observed not only in developing countries, but also in the developed ones. This problem is called public awareness. The paper investigates the public awareness of the main components of the financial safety net in Bulgaria – the deposit insurance scheme and investor compensation scheme - based on a random distribution of a questionnaire among 232 people. The investigation is not considered as being representative but it indicates tendencies in the public awareness of both schemes in Bulgaria. The analysis in the paper is focused on the questions regarding the main activities of the deposit insurance and investor compensation schemes as well as the amount of guarantee, scope of both schemes, compensations payments events, the behavior of depositors and investors in cases of trouble events, etc. The survey shows that in terms of the deposit insurance the awareness of participants is above average, while regarding investor compensation, the results are well below average, one could even say that such awareness is lacking at all. The results of the survey provide information that the efforts of the regulators and financial safety net schemes should be directed to increasing the awareness of depositors and investors in Bulgaria about the benefits and limitations of both schemes.

Impact of digital technologies on the development of insurance activities

Innovative technologies have rapidly entered the life of people and society as a whole, particularly in the economic sphere. One of the economic sectors where the need to utilize digital technologies prevails is insurance. Innovative technologies contribute to the improvement of all processes in the insurance market. The positive development of insurance largely depends on the introduction and use of digital technologies. This article is devoted to analyzing and evaluating the impact of digital technologies on the development of insurance activities. This article examines the impact of digital technologies on insurance activities. The main objective is to describe the main technologies themselves and their application in risk assessment, loss prevention and improvement of insurance services processes. In order to achieve this task, we have reviewed sources on the topic, considered projects and studies in the field of application of digital technologies in insurance activities, and analyzed the data obtained. The work resulted in the presentation of digital science technologies used in the operations of insurance companies, such as artificial intelligence, internet of things, blockchain, and how these technologies can be applied in risk assessment, loss prevention and improvement of insurance service processes. The results can be used by insurance companies applying various digital technologies in their operations, namely online sales of insurance policies, data collection and analysis, artificial intelligence and machine learning to develop the insurance market.

The Impact of Product Diversification and Insurance Activity to Insurance Industry Performance: Moderating Effect of Insurance Penetration: Evidence from India, Pakistan, and Sri Lanka

The Impact of Product Diversification and Insurance Activity to Insurance Industry Performance: Moderating Effect of Insurance Penetration: Evidence from India, Pakistan, and Sri Lanka

Impact of double insurance activities on the output of ordinary insurance companies

Impact of double insurance activities on the output of ordinary insurance companies

Do global uncertainties impede insurance activity? An empirical evidence from top two economies

Insurance companies have long-dated assets and liabilities, so their balance sheets are very sensitive to large changes in risk. Using global investor confidence, oil price uncertainty, world pandemic uncertainty and world uncertainty as proxies for global uncertainties, we examine the influence of global uncertainties on insurance activities in China and US to explain their interdependence and causality from 1992 to 2022. Running continuous wavelet transforms and wavelet coherence analysis, we found that while life and non-life insurance activity in Chinese and American market lags investor confidence and pandemic uncertainty, only non-life insurance activity in the US leads world uncertainty. Since the relation does not hold for their Chinese counterpart, this is not a global effect. Furthermore, the nexus between Chinese and American life insurance activity and oil price uncertainty is insignificant. We conclude that insurance activities in China and US adhere to demand-following hypothesis.

Chains of supplies in insurance services

Insurance activity involves the work of several entities, aimed at creating an insurance product, which is then offered to clients. In traditional terms, the management of chains of insurance services supplies focused on ensuring that actions taken by external entities in respect of insurance undertakings were not detrimental to the stability and security of insurance sector. The number of challenges faced nowadays concerning social and environmental issues results in a pressure from the public on major enterprises, including those from the insurance sector, that their and their subcontractors’ activities give rise to the least negative effects possible. The result of such pressure is also that the insurance and reinsurance undertakings are starting to implement the system of supplies chains management.The aim of this article is to present the legal provisions in force concerning chains of supplies in insurance services, as well as to analyse non-normative sources that may be a basis for the management of chains of insurance services supplies in accordance with the ESC principles. The article also discusses EU legislation proposals concerning sustainable development that have a direct impact on the chains of supplies in insurance sector

Historical and legal foundations of the development of insurance in the Republic of Italy: theoretical and legal analysis

The article examines the historical and legal aspects of the development of insurance and the legal regulation of insurance relations in Italy. It is noted that the foundations of insurance relations and their legal regulation were observed in many countries of modern Europe, including Italy. It has been investigated that the first forms of insurance in Italy were observed as early as the times of the Roman Empire in the form of activities of religious societies and military colleges. It has been proven that the initial forms of insurance in the Roman Empire were built on the basis of the common interests of the participants, were non-commercial in nature and were not aimed at making a profit. It was established that from the 13th century. in Italy, there are mutual aid associations, which were created within the framework of craft guilds, which aimed to help their members in the event of certain insurance cases. It has been studied that starting from the 13th century. Italy becomes the center of marine insurance formation, centered in Genoa, Florence and Venice. The article states that the legal regulation of marine insurance was carried out in accordance with the norms specified in the Pisa Statute and other legislative acts, as well as insurance contracts that had a notarized certificate. It is noted that at the end of the 13th century. special courts were established to resolve disputes in the field of marine insurance. It has been studied that starting from the 14th century. in Italy, the formation of commercial insurance was observed, which was regulated by the Venetian Code of Marine Insurance and the Florentine Ordinance of 1523. It was analyzed that in the 15th-16th centuries. Art. in Italy, such types of insurance as dowry insurance, as well as annuities, tontines and loans, bets have become widespread. It was found that starting from the 18th century. in Italy, insurance companies are created in the form of joint-stock companies, marine insurance is provided by the Maritime Exchange Insurance Chamber, and fire insurance is developed. It is noted that since the XX century. in Italy is developing life insurance. It has been established that today Italy is one of the leading states that carries out insurance activities on the market of insurance services.

Interconnectedness of European insurers and cat shocks contagion effects

PurposeThe purpose of this paper is to examine the evolution of interconnectedness of European insurers among themselves, as well as with other non-financial firms, for the period 2000–2021 and to analyze the stock return movements around the costliest catastrophic events (hurricanes) in the past two decades.Design/methodology/approachThis paper follows the “simple” approach of Patro et al.(2013) and examines the daily stock return correlations of the largest 30 insurers and the largest 30 non-financial firms headquartered in Europe. In addition, the study uses event study methodology to examine stock return movements around the costliest hurricanes.FindingsWe find that the European insurance sector has become highly interconnected during the past two decades; however, its increasing connectedness with non-financial firms is limited to a few firms. In addition, we find weak evidence of the destabilizing effects of catastrophic events on European insurers and non-financial firms; however, the potential for cat risk contagion effects exists as the insurance industry becomes heavily interconnected.Originality/valueThe extant literature is largely concerned with the contribution of the insurance sector to the systemic risk of the financial sector. We focus on a specific region (Europe) and analyze the evolution of interconnectedness of the largest insurers within the insurance sector as well as with the largest non-financial firms encapsulating important crisis periods. In addition, we relate to the literature that examines the market reactions around catastrophic events to test the relevance of traditional insurance activities in instigating potential contagion shocks.

ANALYSIS OF STRUCTURAL SHIFTS IN THE EAEU ECONOMY USING INDIVIDUAL INDICATORS OF STRUCTURAL SHIFTS

The functioning of the Common Economic Space (CES) and the Eurasian Economic Union on the territory of the countries included in the regional association presupposes the implementation by countries and the Eurasian Economic Commission of a coordinated policy in the economic sphere. This policy has an impact on structural changes in the economies of countries and the regional union as a whole. The results of these changes can be assessed using indicators of structural changes, which assess structural changes in individual elements or groups of the population (sectors of the economy) or shifts in all elements of the population. The second indicators characterize the intensity of differences between the two structures as a whole. In this article, we focused our attention on the analysis of structural changes in individual sectors of the economy of the EAEU and the countries included in the regional association. The top five largest sectors of the EAEU GDP in 2022 included: 1) manufacturing industry (13.3%); 2) mining and quarrying (12.3%); 3) wholesale and retail trade; repair of motor vehicles and motorcycles (11.7); 4) transactions with real estate (9.3%); 5) public administration and defense, compulsory social security (5.9%). At the same time, the change in their share in GDP compared to 2011 was in different directions - the share of trade decreased significantly, while the other four industries increased, including significantly in the mining industry. The list of the largest sectors of the Russian economy, their place in the country’s GDP, as well as the direction of change in their share coincides with the economy of the EAEU as a whole. In other EAEU countries the situation is different. Calculations of partial indicators of relative structural changes, calculated by the chain method, showed significant changes in certain periods, including so-called “jumps”, representing a change in the shares of industries in GDP by 50 percentage points. and more. In particular, jumps were observed in Armenia in three industries, in Belarus - in two industries, in Kazakhstan - in one industry, in Kyrgyzstan - in two industries, with two different directions in one industry. There were no horse races in Russia. However, significant changes in the share of GDP were observed in the mining and quarrying industries, financial and insurance activities, the provision of other types of services, administrative activities and additional services in this area. Calculations of partial indicators of relative structural changes calculated using the base method also showed their noticeable changes in relation to the base period. In particular, construction and trade were characterized by a decrease in the share of the EAEU GDP in 2022, amounting to 27 and 21 percentage points. responsibly. At the same time, the share of a number of industries increased: healthcare and social services (+28 p.p.), manufacturing (+10 p.p.). Some countries saw more significant changes, including spikes.

DEVELOPMENT OF FINANCIAL TECHNOLOGIES IN THE REPUBLIC OF KAZAKHSTAN (on the example OF JSC IC NOMAD Insurance)

The article is devoted to assessing the impact of financial technologies on the well-being of insurance companies, to identify negative factors hindering their implementation and development and to suggest ways to reduce this impact. The research used general scientific methods of analysis and synthesis, as well as statistical, correlation and regression methods. The empirical base of the study was made up of official reports and materials of JSC IC Nomad Insurance. The financial technology market in Kazakhstan is one of the fastest growing in Asia. Due to the achieved high level of Internet access penetration (over 90%), the country's fintech sector has huge growth potential. At the same time, large organizations, including companies from the telecommunications sector, are experimenting with the development and implementation of new products and services. And this will contribute to the emergence of new financial technologies in the insurance sector and the emergence of new challenges that require study and solution, which will be the direction of future research. Recommendations have been developed to optimize insurance activities using financial technologies. The company should introduce a number of insurance products and apply technologies to create a "smart" image of the insurance object. Forecasting of the values of the net amount of insurance premiums for the coming years was carried out, the data of which indicates the continuation of the positive dynamics of the activities of JSC IC Nomad Insurance.

Diffusion of Mobile Technologies in the Area of Financial and Insurance Activities in Poland

The diffusion of innovation in the area of banking and certain financial services is a topic eagerly taken up in empirical research, but in the case of Poland the study of this phenomenon in the area of finance and banking that utilizes the econometric models in question is practically non-existent. This article attempts to fill this research gap to some extent. The main objective of the article is to present a comparative analysis of the rate of mobile technologies diffusion among 3 groups of enterprises in the financial and insurance sectors: banking and lending, insurance and reinsurance, and brokerage and other activities. The occurrence of diffusion of mobile technologies and its rate was studied with the help of a logistic function. Results show that in companies operating in the insurance industry, the phase of rapid growth of mobile innovation diffusion lasted longer than in other groups of enterprises, but the highest dynamics of mobile innovation diffusion in the first phase of this phenomenon was achieved by companies conducting brokerage and other activities.

СТАН ТА ЦИФРОВІ ВЕКТОРИ РОЗВИТКУ РИНКУ СТРАХУВАННЯ УКРАЇНИ

The article examines the current state and digital vectors of the development of the insurance market of Ukraine and identifies promising directions for the digitalization of insurance. The essence of the insurance category is revealed. It is noted that the insurance market in Ukraine lags far behind developed countries. An analysis of the dynamics of the number of participants in the insurance market, the amount of assets of insurance companies, the structure of the insurance portfolio by types of insurance was carried out, and the main trends of the insurance market in Ukraine were revealed. The keys to the stable development of insurance activity in Ukraine have been defined as: quick response to new conditions and customer requests; the ability to adapt, accumulate positive experience, analyze and correct negative moments; develop harmoniously, find a balance between the accumulation of new knowledge and their practical application. Factors influencing and functioning of the domestic insurance market are determined. The features of modern trends in digital insurance tools, as an important mechanism for the growth of the insurance market, are revealed. It was found InsurTech that modern technologies are important for insurance companies. These InsurTech nclude artificial intelligence technologies, new inventions in the field of cyber security, big data analysis («bigdata), blockchain technologies, the Internet of Things (LoT ) and smartphone applications.

Board characteristics and takaful performance: the moderating role of ownership concentration

Purpose The purpose of this study is to examine the impact of board characteristics (board size, board independence and duality) on the performance of takaful insurance providers with distinguishable muamalah contracts (wakalah and hybrid) moderated by ownership concentration. Design/methodology/approach The sample consists of 30 takaful insurances. The authors divided it into two subsamples: 18 insurance companies using wakalah contracts provided by Southeast Asia and 12 insurance companies using hybrid contracts provided by the Gulf Cooperation Council over the period 2010–2020. For data analysis, the authors used the partial least squares path modeling method. Findings The results show that the larger the board of directors and the higher the number of independent directors, the greater the takaful performance in both the wakalah and hybrid subsamples. Nondual functions improve the takaful performance in both the wakalah and hybrid subsamples. The results also reveal that a highly concentrated ownership structure positively (negatively) moderates the relationship between board size and takaful performance in the wakalah (hybrid) subsamples. Moreover, highly concentrated ownership insignificantly (negatively) moderates the relationship between independent directors and takaful’s performance in the hybrid (wakalah) subsample. Furthermore, a highly concentrated ownership structure insignificantly (negatively) moderates the relationship between the nondual structure and takaful performance in the wakalah (hybrid) subsample. Originality/value This study contributes to the understanding of the moderating role of a highly concentrated ownership structure between the characteristics of the board of directors and the performance of takaful insurance, which applies wakalah and hybrid contracts. In addition, this study contributes to takaful insurance by determining the appropriate board characteristics that must be adopted to achieve oversight and improve performance. Regulators should appreciate this contribution to the formulation of suitable approaches for efficiently supervising takaful insurance activities.

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.