Insurance Companies Research Articles

Effect of Firm Size, Profitability and Leverage on Voluntary Disclosure of Insurance Companies in Nigeria

The level at which listed firms in Nigeria disclose voluntary information is at an increasing rate yearly. This therefore, led to this research as to what factors influence this voluntary disclosure by insurance companies. This study primarily tries to determine the effects of firm size, profitability, and leverage on the content and degree of voluntary disclosure by insurance companies in Nigeria. All 15 insurance companies listed on the Nigerian Stock Exchange were used as the study's population, and a census sampling technique was applied to arrive at a sample size of ten (10) insurance companies. Data were collected from the insurance companies’ annual reports and accounts. Multiple regression analysis was used to investigate the effects of firm size, leverage, and profitability on voluntary disclosure. The results indicated that leverage and company size have a positive but insignificant effect on voluntary disclosure. Indeed, profitability has a negative but significant effect on voluntary disclosure. It is, therefore, recommended that insurance companies should embark on good corporate governance practices such as the voluntary disclosure of information in order to attract investors and improve their performance.

Sales strategies with a probabilistic business model of an insurance company: The role of updating and targeting

The major goal of decisions made by a business organization is to enhance business performance. These days, owners, managers and other stakeholders are seeking for opportunities of modelling and automating decisions by analysing the most recent data with the help of artificial intelligence (AI). This study outlines a simple theoretical model framework using internal and external information on current and potential clients and performing calculations followed by immediate updating of contracting probabilities after each sales attempt. This can help increase sales efficiency, revenues, and profits in an easily programmable way and serve as a basis for focusing on the most promising deals customising personal offers of best-selling products for each potential client. The search for new customers is supported by the continuous and systematic collection and analysis of external and internal statistical data, organising them into a unified database, and using a decision support model based on it. As an illustration, the paper presents a fictitious model setup and simulations for an insurance company considering different regions, age groups and genders of clients when analysing probabilities of contracting, average sales and profits per contract. The elements of the model, however, can be generalised or adjusted to any sector. Results show that dynamic targeting strategies based on model calculations and most current information outperform static or non-targeted actions. The process from data to decision-making to improve business performance and the decision itself can be easily algorithmised. The feedback of the results into the model carries the potential for automated self-learning and self-correction. The proposed framework can serve as a basis for a self-sustaining artificial business intelligence system.

ENTERPRISE RISK MANAGEMENT (ERM) PRACTICES AND FINANCIAL PERFORMANCE: EVIDENCE FROM LISTED INSURANCE FIRMS IN NIGERIA

This study examined the Enterprise Risk Management (ERM) Practices on the performance of insurance firms in Nigeria. The study used panel and correlational designs in investigating the effect of ERM Practices measured by strategy and operations objectives of the Committee of Sponsoring Organisation (COSO) on the financial performance of insurance firms measured by Tobin’s Q. Secondary data obtained from the annual financial statements of the insurance firms for the periods of 2018-2022 were used in the analysis. The study used panel data regression model to estimate the relationship. The findings revealed the existence of a positive significant effect of strategic objectives on the financial performance of insurance firms in Nigeria. However, a negative significant effect of operational objective on the financial performance of insurance firms in Nigeria was documented. The study recommended that insurance firms in Nigeria should continue to ensure full conformity to the provision of COSO components while carrying out their business operation. They should also re-strategize and monitor their financial performance outcomes in line with their established objectives in order to attain the holistic application of ERM strategic objectives in the overall business operations.

The Impact of Digital Inclusive Finance on Residents’ Cultural Consumption in China: An Urban-Rural Difference Perspective

This paper uses panel data from the 2014–2020 China Family Panel Studies (CFPS) to study the impact of digital inclusive finance (DIF) on the cultural consumption of urban and rural residents using two-way fixed effects. The results show that DIF can promote the growth of cultural consumption of urban and rural residents, and the promotion effect is greater for rural residents. Mechanism analysis shows that DIF increases the cultural consumption of urban and rural residents mainly through easing liquidity constraints, reducing precautionary savings, and increasing payment convenience. Moreover, reducing precautionary savings has a greater impact on the cultural consumption of urban residents, while the other two mechanisms have a greater impact on rural residents. In the heterogeneity analysis, credit business and some indicators reflecting the convenience of payment have a greater impact on rural residents. The insurance business has a greater impact on urban residents. This paper provides policy references for the development of DIF and the enhancement of residents’ cultural consumption.

Information Mode-Dependent Success Rates of Obtaining German Medical Informatics Initiative-Compliant Broad Consent in the Emergency Department: Single-Center Prospective Observational Study.

The broad consent (BC) developed by the German Medical Informatics Initiative is a pivotal national strategy for obtaining patient consent to use routinely collected data from electronic health records, insurance companies, contact information, and biomaterials for research. Emergency departments (EDs) are ideal for enrolling diverse patient populations in research activities. Despite regulatory and ethical challenges, obtaining BC from patients in ED with varying demographic, socioeconomic, and disease characteristics presents a promising opportunity to expand the availability of ED data. This study aimed to evaluate the success rate of obtaining BC through different consenting approaches in a tertiary ED and to explore factors influencing consent and dropout rates. A single-center prospective observational study was conducted in a German tertiary ED from September to December 2022. Every 30th patient was screened for eligibility. Eligible patients were informed via one of three modalities: (1) directly in the ED, (2) during their inpatient stay on the ward, or (3) via telephone after discharge. The primary outcome was the success rate of obtaining BC within 30 days of ED presentation. Secondary outcomes included analyzing potential influences on the success and dropout rates based on patient characteristics, information mode, and the interaction time required for patients to make an informed decision. Of 11,842 ED visits, 419 patients were screened for BC eligibility, with 151 meeting the inclusion criteria. Of these, 68 (45%) consented to at least 1 BC module, while 24 (15.9%) refused participation. The dropout rate was 39.1% (n=59) and was highest in the telephone-based group (57/109, 52.3%) and lowest in the ED group (1/14, 7.1%). Patients informed face-to-face during their inpatient stay following the ED treatment had the highest consent rate (23/27, 85.2%), while those approached in the ED or by telephone had consent rates of 69.2% (9/13 and 36/52). Logistic regression analysis indicated that longer interaction time significantly improved consent rates (P=.03), while female sex was associated with higher dropout rates (P=.02). Age, triage category, billing details (inpatient treatment), or diagnosis did not significantly influence the primary outcome (all P>.05). Obtaining BC in an ED environment is feasible, enabling representative inclusion of ED populations. However, discharge from the ED and female sex negatively affected consent rates to the BC. Face-to-face interaction proved most effective, particularly for inpatients, while telephone-based approaches resulted in higher dropout rates despite comparable consent rates to direct consenting in the ED. The findings underscore the importance of tailored consent strategies and maintaining consenting staff in EDs and on the wards to enhance BC information delivery and consent processes for eligible patients. German Clinical Trials Register DRKS00028753; https://drks.de/search/de/trial/DRKS00028753.

Vnímanie versus dôvera poistenia hypotekárneho úveru

The aim of the paper is to examine, based on the results of a questionnaire survey, the perception compared to trust in mortgage insurance by respondents, classifying possible deviations depending on selected demographic factors such as age, gender, education and permanent residence. We assume that the perception and trust of respondents in mortgage insurance are influenced by their level of financial literacy, which we determined through theoretical questions in the questionnaire survey. We also analyzed selected aspects of insurance, such as the price of insurance, the scope of coverage, the reputation of the insurance company and the financial situation of the respondents, which influence the decision-making of respondents when choosing mortgage insurance

Tax Reform Regarding Tokenized Corporate Bonds in Japan

The 2024 tax reform in Japan took a significant step forward toward establishing a tax system designed to promote the issuance of corporate bonds as security tokens for wholesales. Prior to the amendment, certain entities, including banks, insurance companies, and certain financial instruments business operators, were subject to withholding tax on interest income from tokenized bonds. However, these entities are now exempt from the withholding tax, provided the tokenized bonds are managed in accordance with the relevant public notice of the Financial Services Agency in Japan. Owing to this recent tax reform, the barrier that previously prevented many companies from issuing security token bonds for wholesale purposes has been removed, and as a result, the issuance of such bonds is expected to increase substantially going forward.

How ESG corporate reputation affects sustainability premiums in the insurance industry

Based on increasing ESG awareness, executives, and investment professionals consider ESG factors in strategic and operational decisions. Like other companies, insurers recognize that the ESG transition offers opportunities for long-term value creation. In our research, we evaluate how ESG corporate engagement impacts an insurance company's balance sheet in economic and financial terms, unlocking financial resources throughout the sustainability premium. We resort to the theoretical paradigms of behavioral finance applied to actuarial portfolio evaluations. Our findings show that ESG engagement is significantly performing since it determines higher expected profits. We offer our framework as a tool for the strategic decision-making process.

Smart contracts on blockchain for insurance and Takaful industry

Blockchain technology can drastically reduce the costs associated with claim verification in the insurance and Takaful industry while increasing trust among involved parties through smart contracts and a shared source of truth. This study examines whether Takaful operators and insurance companies apply blockchain differently and explores the benefits of blockchain technology and smart contracts for both. It conducts a systematic review of relevant literature and a meta-analysis to assess how current studies describe and combine cases as evidence. The results indicate that Takaful and insurance companies that use smart contracts experience a reduction in fraudulent claims, increased transparency, enhanced connections between involved parties, and automation of claim payments with minimal human intervention. The analysis reveals no difference in the application of blockchain technology between the two types of operators, despite the distinct operating contracts of Takaful and conventional insurance.

Access to and use of Data for better Healthcare: A Plea for a cooperative data and Research Infrastructure of Statutory and Private Health Insurers and the Network University Medicine (NUM)

With the Network of University Medicine (NUM) and the Medical Informatics Initiative (MII), the BMBF is funding two pioneering, structure-building research measures that are now being merged. The data integration centers (DIZ) of the MII are to be consolidated in the NUM. The aim is to establish a standardized research infrastructure within which the existing data from the clinical routine care of the 36 German university hospitals, from clinical cohorts and clinical-epidemiological studies can be used for various research questions upon request and via coordinated processes. The legal basis for this was the MII's "Informed Broad Consent", which had been agreed upon with ethics committees and data protection authorities and implemented in all NUM locations, with a so-called "health insurance module" that allows the collection and linking of routine medical data from statutory health insurance funds (GKV) and private health insurers (PKV) as a category of care-related data (VeDa). Linking this routine data with data from hospital information systems offers particularly high potential, as no single data source provides a complete picture of medical care and the two data sources complement each other optimally. The aim now is to integrate this routine data into the NUM's secure, transparent and participatory research infrastructure in a strategic partnership with statutory health insurance funds and private health insurance companies. This promotes Germany in its role as a research location and makes a decisive contribution to improving the quality and safety of healthcare in Germany in an evidence-based manner.

Nexus of fraud mitigation practices and profitability of insurance companies in South Africa

The objective of this study was to evaluate how measures taken to prevent fraud impact the Profitability of insurance companies operating in South Africa. The study adopted a descriptive research approach and surveyed a sample of 70 licensed insurance companies in the country. Primary sources of data were obtained by engaging claims managers in each of the firms, and descriptive and inferential statistics were used to analyse the data. The results of the study revealed that fraud mitigation measures significantly affect the Profitability of insurance companies in South Africa. The implementation of fraud prevention, detection, and response measures had a positive impact on the Profitability of these firms. Based on the findings, the study recommends that the Insurance Regulatory Authority establish regulations that mandate all insurance providers to collect and report statistics on fraud. Insurance firms should provide their employees with comprehensive training on fraud management and implement strict penalties and disciplinary measures for employees involved in fraudulent activities, as they can undermine the effectiveness of the fraud mitigation process.

Insights into employee satisfaction: Assessing job facilities and factors influencing contentment in the workplace among insurance companies in Bangladesh

This study examines the Job facilities and the factors affecting employee satisfaction levels and how significantly they are correlated to each other. In the world of business research, one of the vital challenges is employee commitment toward the company. According to research, employee dedication and performance are strongly correlated with employee contentment. That is why employers and researchers are constantly looking for explanations for employee happiness. Several aspects affect employee satisfaction, some of which are obvious while others are not. This study explores how certain financial and non-financial variables relate to employee contentment. The survey has been done by a Likert scale questionnaire on a total of 200 employees from 10 Insurance companies in Bangladesh. According to this empirical study, a few non-financial variables, except salary, have a substantial relationship with employee satisfaction.

From Traditional to Transformational: Leveraging Digital Twins for Advanced Testing in Life Insurance

The Life Insurance industry is undergoing a profound digital transformation, transitioning from traditional, static methodologies to agile, data-intelligent ecosystems capable of adapting to dynamic customer demands and stringent regulatory complexities. At the forefront of this shift is the adoption of digital twins—high- fidelity virtual replicas of physical systems, processes, and assets—specifically for testing and optimizing Life Insurance platforms. This paper provides a deep dive into the role of Digital twins in the Life Insurance domain, exploring their powerful applications in underwriting, policy lifecycle management, and claims processing. By accurately simulating complex, real-world scenarios, Digital twins enable predictive testing environmentsthat refine system resilience, preemptively identify risk exposures, and ensure operational continuity. Through this sophisticated digital infrastructure, insurers gain a transformative tool for enhancing precision, boosting reliability, and driving efficiency in core insurance processes. This research investigates the architecture, applications, and strategic trajectory of Digital twins as next generation testing mechanisms reshaping Life Insurance. Keywords: Digital Twin, Life Insurance, Underwriting, Policy Lifecycle Management, Claims Processing, Virtual Simulation, System Resilience, Operational Efficiency, Data-Driven Testing, Digital Transformation, Predictive Modeling, Testing Framework, Real-World Scenarios

A new approach to determining the development directions for crop insurance organizations: experience from Lithuania

The appropriate organization of the crop insurance process is an essential task for all participants in the insurance system, and the system development is one of the main arguments for its existence. The main problem is that crop insurance companies do not have any instrument for determining the most suitable direction for development as an obligatory strategic solution. This article aims to provide the methodology suitable for insurance companies as participants in the crop insurance system to determine the most appropriate direction for development under the present conditions. In this article, we provide the substantiated multicriteria methodology for determining the most suitable direction for developing the activity performed by insurance companies. Insurance companies' possible business development directions are justified, and appropriate evaluation criteria are specified. The suggested methodology is based on applying the multicriteria assessment method, TOPSIS. This original method proved to be the most suitable one for management solutions. This quantitative methodology was tested under natural conditions, using the example of Lithuania, and the suitability of its application was proved entirely. The suggested methodology can also help crop insurance companies find the best direction for future development.

Mapping agents: A spatial economic analysis of agent location in the Federal Crop Insurance Program

AbstractCrop insurance is delivered to farmers and ranchers through a partnership among the Federal Crop Insurance Corporation (FCIC), part of the United States Department of Agriculture, and the crop insurance industry. The FCIC offers financial incentives, through reinsurance and subsidies, to private insurance companies for insurance contracts sold in accordance with the Standard Reinsurance Agreement (SRA). Crop insurance agents play an important role in the delivery of the federal crop insurance program, acting as intermediaries between farmers and crop insurance companies. Little is understood about the supply of crop insurance agents and the role of government policy in the provision of agent services, particularly after the 2010 SRA. We model the equilibrium supply of crop insurance agents to derive testable hypotheses about the factors that influence agent concentration across space. We evaluate our model using spatial econometric techniques and a novel dataset of crop insurance agent locations by county. Generally, forces that raise agent compensation, including the degree of competition among insurance companies, are shown to increase the local supply of agents. Results vary by government‐defined reinsurance regions. Notably, historical average premium rates, which both reflect actuarial risk and influence farmer insurance demand, are negatively related to agent competition in the low‐risk Group 1 states, which contributes over 40% of insured liabilities. These factors produce spatial spillovers, suggesting the presence of agglomeration effects in the market for agent services. Proposed changes to the SRA should consider impacts on the regional distribution and local supply of agents.

Does financial inclusion build the financial resilience of elderly women?

ABSTRACT As the global population of elderly women continues to grow, understanding their financial well-being has become increasingly important. Despite the growing attention on financial inclusion, limited research has focused on how it impacts the financial resilience of elderly women, a group particularly vulnerable to financial shocks. This study addresses this gap by exploring how financial inclusion contributes to elderly women’s ability to cope with unexpected financial emergencies. Using survey data from 1,664 elderly women (above 60 years), the study investigates the role of various financial inclusion indicators – such as savings and insurance products, as well as reliance on family members for saving money – in enhancing financial resilience. Our findings show that financial inclusion plays a crucial role in strengthening the financial resilience of elderly women, with significant contributions from owning savings and insurance products. These insights have important implications for policymakers, regulators, and financial institutions seeking to design more inclusive financial services for elderly populations. By fostering financial inclusion, this study contributes to broader efforts toward achieving the United Nations’ Sustainable Development Goals (SDGs), particularly those related to reducing inequality and promoting economic security for all.

The Relationship between Premium Collection and Investment of Insurance Companies: A Case Study of Prabhu Insurance Company

This study explores the influences of globalization on secondary social studies textbooks. It uses a qualitative case study method to explore how global topics like multiculturalism, environmental sustainability, and human rights are included in textbooks, teaching materials, and methods. The researchers collected data through interviews with two teachers and by analyzing documents to understand how global ideas are shown in textbooks. The findings indicate that globalization has improved the curriculum by promoting global citizenship and increasing awareness of different cultures. However, there are challenges, such as the risk of losing local culture and content. Balancing global themes with local contexts is essential to help students understand their diverse environment. The study also examines key topics in textbooks, showing how Social Studies help students understand social issues and build national identity. It emphasizes the importance of active participation in communities and how modern teaching methods can make Social Studies more engaging. Lastly, the research highlights how globalization encourages students to think critically about global challenges and their local effects.

Wpływ pandemii COVID-19 na sektor ubezpieczeń GPW w Warszawie S.A.

Purpose: The article aims to assess the impact of the COVID-19 pandemic on the insurance sector of the Warsaw Stock Exchange S.A. in 2019–2021. Design/Methodology/Approach: Quarterly financial reports were used to conduct the study. The economic condition was examined using elements of financial analysis, and the valuation was based on the analysis of market rates of return. Findings: The results allowed us to conclude that the COVID-19 pandemic harmed the insurance sector of WSE. Due to the differences in the parameters of the size of capitalization, the scope of services provided, the territory of operation and the structure of sources of income, the effects of the pandemic are significantly different. The pandemic had a minor impact on the financial condition of PZU S.A., however, the economic condition of the remaining analysed entities deteriorated. The market valuation in the analysed period also varied two companies recorded a significant decline in rates of return compared to the rate of return of the WSE benchmark, while the remaining two achieved rates of return higher than the rate of return of the WIG index. Research limitations/implications: In the conducted research, the limitations were: a small research sample – a small number of studied companies and the specific nature of the analysed industry insurance companies are characterized by a different nature compared to the others, which resulted in the specific selection of elements of financial analysis in the conducted study. Originality/value: The article raises the issue of the impact of the COVID-19 pandemic on the financial condition and market valuation of a specific industry.

Price Volatility Mitigation and the Securities Market Financial Performance of Listed Insurance Firms at Nairobi Securities Exchange.

The performance of securities market globally plays an important role in both local and international markets. The high rise of such markets has given an increase in the number or risks associated with firms registered at the stock market. This study therefore sought to examine the effect of price volatility mitigation on the securities market financial performance of listed insurance firms in Kenya. The study adopted a descriptive research design and a quantitative research approach. The target population was 548 staff working in finance, investment, risk, actuarial and operations departments in the six insurance firms listed in Nairobi Securities Exchange. The sample size was determined using Yamane's Formula and stratified random sampling was used in the selection of the sample size. The study made use of both primary and secondary data. The study used a data extraction tool to collect secondary data from the annual reports and financial statements of the insurance companies. The study made use of structured questionnaires to collect primary data. The questionnaires generated quantitative data. Descriptive and inferential statistics was used in analyzing quantitative data with the help of the Statistical Package for Social Sciences (SPSS version 24) statistical software. Descriptive statistics included frequency distribution, percentages, mean, and standard deviation. Inferential data analysis was done using Pearson correlation coefficient and linear regression analysis. The study found that price volatility mitigation has a positive and significant effect on securities market financial performance of listed insurance firms in Kenya. The study recommends that insurance firms should focus on implementing strategies to effectively manage supply and demand dynamics within the securities market. This includes closely monitoring market trends, analyzing supply-demand imbalances, and adjusting pricing and stock clearance strategies accordingly. By actively managing supply-demand dynamics, firms can mitigate price volatility risks and enhance securities market financial performance

Advancing Industries with AI: The applications being transformational include: Healthcare, powering the Petroleum industry, Handling fraud, Cybersecurity, and Conversational AI

Today, AI is becoming integrated into more and more sectors of human activity, providing new approaches to a number of traditional problems, and improving multiple aspects of business and industrial processes, decision-making, and customer interactions. This paper explores the applications of AI across five key sectors: health care, petroleum, fraud detection, cybersecurity, and conversational designing. Using AI in healthcare, diagnostics and treatment have been transformed together with improvement of patients’ care, early disease identification and better clinical outcomes. AI is applied in enhancement of exploration, production and refinery of petroleum products in the industry while enhancing sustainability. In fraud detection, AI systems thus offer capability to analyze large datasets in real time to reduce and prevent frauds in banking and insurance industries as well as e-commerce businesses. AI in cybersecurity strengthens threat identification, supports automatic management of preventive measures, and offers risk prognosis, with improved protection measures against cyber threats. And, lastly, conversational AI is emerging in the shape of technologies such as Chatgpt that help enhance customer experience and generate content. However, the increasing number of users of artificial intelligence technologies has a number of problems related to advisor ethics, data protection, system openness, and the dynamic nature of threats. While AI technologies mature, their adoption in these industries raises important questions about ethics, security and legal requirements with a view of mainstream proper and democratic development of these technologies. Raising the question of how to advance AI in the face of its problems, the future of AI remains in the effectiveness of using it as a tool for improving technology’s capabilities and for providing solutions which will make the technology more effective, secure, and more accessible in a number of years.