Insurance In Europe Research Articles

Can satellite-retrieved data increase farmers' willingness to insure against drought? – Insights from Germany

CONTEXTAs the demand for index insurance in Europe remains low, the use of satellite-retrieved data has received considerable research attention because it can reduce the basis risk, increase hedging effectiveness and thus potentially increase the attractiveness of index insurance to farmers. However, there is limited knowledge on farmers' demand and specific preferences for satellite-based index insurance. OBJECTIVEThis study aims to obtain initial insights into farmers' preferences for satellite-based index insurance. In particular, farmers' overall preferences for satellite-based compared to precipitation-based index insurance are investigated. The objective is further deepened by investigating the effect of partially subsidizing index insurance. Finally, we focus on differences in preferences caused by the farmer's individual specific factors as this allows to identify the potential target groups for satellite-based index insurance. METHODSAs satellite-based index insurance is still hard to find in Europe, a discrete choice experiment has been conducted with 127 German farmers. In a hypothetical scenario, farmers had to choose whether or not to insure themselves against drought by purchasing hypothetical index insurance products. Specifically, based on a labeled design, they had to choose between a satellite-based and a precipitation-based index insurance, or could choose not to use either alternative (opt-out). We include other insurance attributes such as premium, strike level and payout as they were rated as important by the farmers. RESULTS AND CONCLUSIONMixed logit model results show a preference for both index insurance products against no insurance. Particularly, the average farmer has a statistically significant higher preference for the satellite-based index insurance. In addition, subsidizing satellite-based index insurance has a higher effect on farmers' preferences. Moreover, the latent class model identifies heterogeneous preferences among farmers. Insurers can be advised to incorporate satellite data into the design of index insurance. By integrating them into existing index insurance products or by developing purely satellite-based index insurance, insurers could tailor index insurance better to farmers' preferences. Policymakers can be advised that farmers are differentially sensitive to subsidies. Especially farmers with a stronger preference for the satellite-based index insurance derive a huge increase in utility from subsidies. SIGNIFICANCEThe study provides initial insights into farmers' preferences for satellite-based index insurance that can guide insurers regarding the design of index insurance products and give policymakers insights into how governmental support would change farmers' demand for index insurance.

INSURANCE COMPANIES AS PRODUCERS OF INVESTMENT FINANCIAL SERVICES

Introduction. Insurance companies are among the largest investors in countries with developed insurance markets. At the same time, it is legitimate to consider them as institutional investors. In today's conditions, foreign insurance companies demonstrate the intensification of life insurance, which, in turn, determines the need to improve existing insurance products and/or introduce non-traditional products, which include investment life insurance. The latter are a popular instrument in the market of insurance and investment services, primarily due to the combination of such features as insurance protection and profitability. The successful operation of life-insurers in a constantly dynamic and competitive environment is associated with their ability to quickly respond to the challenges of the external and internal environments, and not only to adapt to them, but also to use new circumstances for increasing the competitiveness and capitalization of the company, as well as preserving and expansion of own client base. The purpose of the article is to study the specifics of the activity of insurers as institutional investors, on the one hand, and their ability to produce investment financial services, in particular investment life-insurance services, to identify the attributes of the latter, differences from classical life insurance and outline the prospects for the development of investment-oriented life insurance on the domestic insurance market. Results. It is identified the features of the functioning of insurance companies as institutional investors. The definition of “investment potential of an insurance company” was defined and deepened. The specifics of investing insurance reserve funds and investment opportunities for non-life and life insurers are argued. Modern trends in the development of the life insurance market and, accordingly, the latest formats in the management of assets of life insurers have been revealed. The specifics of investment life insurance are clarified and its attributes are formulated. The differences between classic mixed life insurance and investment life insurance are systematized according to the following criteria: motivation for concluding the contract; placement of insurance premium; the principle of calculating insurance premiums; obligations of the insurer; the amount of the redemption amount; the possibility of receiving additional payments; the dynamics of increasing the premium reserve. Trends in the development of investment life insurance in Europe and on the Polish insurance market have been analyzed. Conclusions. Modernity requires the implementation of the latest approaches to the activities of insurance companies, in particular in the area of production of investment financial services, namely investment life insurance. Classical standards in life insurance are gradually being abandoned, which contributes to the dynamic development of insurance worldwide, which provides for the payment of insurance coverage depending on the dynamics of stock values. The need to develop investment life insurance on the domestic insurance market – a financial instrument that embodies both insurance protection and an accumulation opportunity with the help of investments – has been proven.

Positional Deprivation and Support for Redistribution and Social Insurance in Europe

We argue that support for redistribution increases when one experiences “positional deprivation,” situations when one’s own income increases slower or decreases faster compared to that of others. This specific combination of economic suffering over-time and relative to others has effects beyond well-studied measures of suffering that are static and/or absolute in nature, such as income level. We empirically explore this hypothesis by using “objective-material” measures of positional deprivation derived from the Luxembourg Income Studies and the European Social Survey, and by using “subjective” measures derived from an original survey in 13 European countries. We find that those whose income growth is outpaced by the average and/or richest members of their country are more likely to support redistribution. We also find that the objective and subjective measures of positional deprivation are significantly correlated, and that positional deprivation’s fostering of support for redistribution holds above-and-beyond static and/or absolute measures of economic experience.

Disaster insurance in Europe

Disaster insurance in Europe

Social insurance in Europe: A comparative legal study

The relevance of the study of social insurance in Europe is conditioned by the fact that social insurance is one of the important areas in the social policy of the state, and the development of this sector provides an effective mechanism for protecting the population, which determines the level of economic stability of the country. The purpose of the study is to conduct a comparative legal analysis of the functioning of social insurance in European countries, which can be carried out due to the methodological approaches used in the paper, revealing both the theoretical and practical components. These methods include the theoretical methodological approach, the formal legal methodological approach, the methods of comparative analysis, deduction, induction, synthesis, etc. As a result, a theoretical aspect was investigated that reveals the concept of “social insurance” and the mechanism of implementation of the sector under study, with the allocation of its inherent features and principles on which its activities are based; the experience of functioning of social insurance in such European states as Germany, Great Britain, Denmark, France, Sweden, and Finland was studied, as a result of which the activities of this sector were considered through the prism of the legal doctrine of each of the states and the experience of conducting social policy. The results obtained allowed conducting a comparative analysis of social insurance in each of the studied countries with the allocation of advantages and disadvantages in each of them, which made it possible to assess the effectiveness of social policy in them and highlight the optimal model of the social state

A Systematic Review on The Insurability Risk for Long-Term Care Insurance in Europe and Asia Countries

Due to the trends of the increase in life expectancies and decrement in fertility rates, the world population is moving towards becoming an ageing nation. With the rise in the number of older people, the demand for long-term care services is expected to increase. Long-term care services are ubiquitous in the developed country, especially in the European region as the countries have become the aged nations. Apart from that, the cost for long-term care services differs for individuals based on the level of needs and the service provider, either public or private nursing home for long-term care. Due to the growing cost of long-term care services, a long-term care insurance policy may be seen as an alternative to covering the cost of long-term care services because the risk is mitigated for individuals. However, most Asian countries are not familiar with the long-term care insurance policy as there is no specific insurance policy for long-term care services offered yet in these countries. The essential factor in constructing a long-term care insurance policy is to identify the risks that are insurable to be included in the policy to be used later for pricing long-term care insurance policy in Malaysia. This study provides an in-depth review and understanding of the insurable risks associated with long term care insurance in European and Asian countries.

A Systematic Review on The Insurability Risk for Long-Term Care Insurance in Europe and Asia Countries

Due to the trends of the increase in life expectancies and decrement in fertility rates, the world population is moving towards becoming an ageing nation. With the rise in the number of older people, the demand for long-term care services is expected to increase. Long-term care services are ubiquitous in the developed country, especially in the European region as the countries have become the aged nations. Apart from that, the cost for long-term care services differs for individuals based on the level of needs and the service provider, either public or private nursing home for long-term care. Due to the growing cost of long-term care services, a long-term care insurance policy may be seen as an alternative to covering the cost of long-term care services because the risk is mitigated for individuals. However, most Asian countries are not familiar with the long-term care insurance policy as there is no specific insurance policy for long-term care services offered yet in these countries. The essential factor in constructing a long-term care insurance policy is to identify the risks that are insurable to be included in the policy to be used later for pricing long-term care insurance policy in Malaysia. This study provides an in-depth review and understanding of the insurable risks associated with long term care insurance in European and Asian countries.

Social Health Insurance in Europe: Basic Concepts and New Principles.

This article discusses recent developments in and new principles of European social health insurance (SHI). It analyses how privatization policies and competition have altered social insurance and whether financial difficulties are caused by social insurance features not evident in other types of health care systems. There is little if any evidence that SHI causes higher cost increases than other types of systems. The comparison of five European SHI systems demonstrates that despite cost containment policies these countries do not experience a trust crisis in health care or loss in support among the public. The author shows that SHI has moved toward universal health care and that the traditional values of solidarity and social security have even been strengthened over the past decades.

Motor Vehicles Not Used in Road Traffic Are Also Subject to Compulsory Insurance in Europe - CJEU Clarification in Case C-80/17

The article analyses a recent significant case in the Court of Justice of the European Union on the extent of compulsory insurance in the field of motor insurance. The judgment delivered by the Grand Chamber of the CJEU on 04 September 2018 clarifies the obligation to conclude a motor insurance contract in a situation when a motor vehicle is no longer intended to be used in road traffic. If previously there was no doubt that motor vehicles that are used in road traffic are subject to compulsory insurance, it was unclear whether compulsory insurance in the field of motor insurance also extends to vehicles which are no longer intended to be used in road traffic. The Court formulated the ‘three criteria’ test for establishing whether a vehicle should be subject to compulsory insurance in the field of motor insurance: the vehicle is registered; the vehicle is not officially withdrawn from use; and the vehicle is capable of being driven. By applying this test in the case under discussion, the Court found that a duty to conclude a motor insurance contract also applies to vehicles that are no longer intended to be used in road traffic, irrespective of the reason for abandoning such use. The case is discussed by considering the material facts, following the Court’s reasoning and finishing with a critical assessment.

EUROPA DONNA´s First MBC Advocacy Training Course

Background and context: Breast cancer is the most common type of cancer in European women and has the highest mortality of any cancer. Although women with metastatic breast cancer (MBC) are living longer today, in many European countries all their needs and rights to high quality care are not being met. In European countries, MBC services run the gamut from some of the best in the world to services so minimal and basic that most women who present with breast cancer already have MBC. Aim: To impart MBC advocates with the tools and knowledge to initiate and carry out best practice MBC advocacy programmes in their own countries and at the European level. Strategy/Tactics: 1) Provide simple, clear and scientifically sound information to MBC advocates and that ED National Fora can use effectively in their advocacy efforts; 2) Provide a forum in which members from a broad spectrum of European countries learn from one another through the exchange of ideas, experiences and best practices; 3) Provide expert presentations on important MBC topics with the ultimate aim of bringing every country to the level of MBC service described in the EU Guidelines, enhancing the public's knowledge of MBC and therefore reducing stigma surrounding the disease. Programme/Policy process: ED will invite MBC advocates from each of our 47 member countries to attend our 1st MBC Advocacy Training Course and all their expenses will be paid. The 2 1/2 day course will involve: Introductions of ED and participants. Scientific Lectures/Advocacy Skills: Experts will cover such topics as treatment of MBC and the European Commission Initiative on Breast Cancer. Professionals will discuss issues including breast cancer registries and insurance in Europe. ED trainers will share the latest developments from ABC4, the ABC Global Alliance and successful MBC advocacy strategies. A showcase will include MBC related videos and publications. Communication Skills Training Workshops: Three experienced trainers will conduct intensive workshops teaching practical presentation skills and assertiveness techniques. Trainees will be coached individually on handling various situations relevant to MBC advocacy. Participants will role-play to practice these skills. Course materials: A detailed course manual will be developed, distributed and discussed. Follow-up reports will be expected of course attendees to encourage the development of strong and sustainable MBC advocacy programmes. Outcomes: We expect to arm MBC advocates and, through them, ED Fora, with accurate, up-to-date information and proven strategies to lead their countries in advocating for improved MBC services and educating people about MBC. This will lead to improvements in MBC services and public health knowledge, reduce inequalities in MBC services and information provision among European countries, and reduce stigma of the disease at the country- and European-level. What was learned: The course will be held in September 2018.

Prospects for agricultural insurance in Europe

Prospects for agricultural insurance in Europe

Cross-Border Insurance in Europe: Challenges for Supervision

At the start of Solvency II in January 2016, there is no overview of the insurance market in Europe. This paper develops a methodology to link various data sets on foreign branches and subsidiaries. The result is a new and comprehensive data set of cross-border insurance in Europe. We find that cross-border business in insurance is higher than in banking. We also find that the share of cross-border insurance has increased over the last decade, notwithstanding the global financial crisis. EIOPA, the European supervisory authority, plays a coordinating role among the national supervisors in the approval of internal models under Solvency II. Game theory suggests that there are limits to the coordination model. The increasing share of cross-border insurance, documented in this paper, may tilt the supervisory balance from coordination towards centralisation in an Insurance Union.

Is the minimum amount of coverage from motor third party liability insurance enough to cover personal injuries?

MTPL insurance is the most common insurance in Europe; in most countries, it is compulsory insurance which enables the functioning of the following systems, among others: the green card and the multilateral agreement. For this insurance, insurers guarantee insurance protection up to the guaranteed amount. In view of the universality of these products, basing these products on the international protection system for aggrieved parties in motor vehicle accidents, increases in the payment of damages for personal injuries, as well as differences in the earnings which are supposed to be compensated in various countries, a question arises as to whether the amount of the minimum guaranteed sum is sufficient. This article, which contains simulations of life annuities based on income levels and citizens' life expectancies that are relevant for EU countries, is devoted to examining the aforementioned issue.

Private health insurance in Europe and Turkey

Health Insurance is a system that has been developed to meet the expenses of physical examination, treatment and care may be required due to disease. Employees and retirees are generally provided with health insurance. However, in certain countries where social welfare applications are advanced, there are health insurance systems which have been developed to involve all citizens. In order to take advantage of these systems, individuals are required to either pay a certain amount of their incomes as tax or pay a certain insurance premium. Private health insurance is a kind of insurance that ensures expenses and daily indemnity if any, up to the amounts written in policy, within the scope of insurance, which is required for the treatments if the insured person gets sick within the period of insurance or gets injured because of any accident. In the scope of the study, it has been included development of private health insurance and the current practices in Turkey and European countries. In this context, private health insurance market comparisons have been made for Turkey and European countries.

Cross-Border Insurance in Europe

At the start of Solvency II in January 2016, there is no overview of the insurance market in Europe. This paper develops a methodology to link various datasets on foreign branches and subsidiaries. The result is a new and comprehensive dataset of cross-border insurance in Europe. We find that cross-border business in insurance is higher than in banking. We also find that the share of cross-border insurance has increased over the last decade, notwithstanding the global financial crisis.EIOPA, the European supervisory authority, plays a coordinating role among the national supervisors in the approval of internal models under Solvency II. Game theory suggests that there are limits to the coordination model. The increasing share of cross-border insurance, documented in this paper, may tilt the supervisory balance from coordination towards centralisation in an Insurance Union.

Entitlement to Health Insurance in the Republic of Albania and the Europian Code of Social Defence

The entitlement to the health insurance is one of human rights and freedoms defined in the Constitution. It is part of social objectives of the State. The study aims to extend not only in the internal legislation but also to compare this with the most relevant and most important document of the field that is the European Code of Social Defense, confirming compliance with the lines and the main principles of this document. Paper also makes a quick analysis of some typical systems of health insurance in Europe. The purpose of this analysis is that by exploiting the spirit of the European Code of Social Security and analyzed systems experience, to offer appropriate solutions to concrete problems of various administrative and procedural law that are found during the development of the scheme in Albania.Also, the paper aims not only to provide a theoretical treatment of problems in this area, but also to give concrete practical suggestions, because the improvement of legislation in this area should be done in the context of a policy of harmonization with European standards and parameters. DOI: 10.5901/mjss.2013.v4n10p505

Automatic stabilization and discretionary fiscal policy in the financial crisis

Abstract This paper investigates the relationship between the magnitude of automatic stabilizers in the tax and transfer systems of 19 EU countries and the US, and discretionary fiscal stimulus packages passed by these countries during the recent economic crisis. In particular, we ask whether countries with larger automatic stabilizers have enacted smaller discretionary fiscal stimulus programs. Our results support this hypothesis. Our findings also suggest that social transfers, in particular the rather generous systems of unemployment insurance in Europe, play a key role for the stabilization of disposable incomes and explain a large part of the difference in automatic stabilizers between Europe and the US.

Maximum Technical Interest Rates in Life Insurance in Europe and the United States: An Overview and Comparison

We compare the regulatory environment for the maximum technical interest rate of life insurance contracts in four European countries and the United States. In Germany, Austria and Switzerland, the maximum rate is driven by a long-term rolling average of government bond yields and is adjusted by the regulator. In the U.S., corporate bond yields are used and the regulator is not directly involved in setting the maximum rate. The regime implemented in the United Kingdom is unique: instead of a rules-based “one-size-fits-all” approach, the maximum rate is determined by a company-specific principle-based method. We provide a comparative analysis of the different systems and conduct a numerical analysis to investigate how the maximum rate will develop under predefined interest rate scenarios. The discussion is highly relevant in light of Solvency II, a regime that may fundamentally change regulation of the maximum technical interest rate.

Relative effectiveness and the European pharmaceutical market

The development of a single European market for medicines over the last decades is a major achievement by European Community legislation. The establishment of the European Medicines Agency (EMA) in 1993 was crucial for the breaking up of system of separate national markets, creating a free flow of medicines throughout the European Union. However, the benefits of a more competitive generics market and from parallel import and export have developed slowly, and there are still potential gains from improved efficiency in the market for generic drugs. The harmonization of market authorization for new medicines through EMA was a necessary but not sufficient condition for the development of a single market. Pricing and reimbursement measures at the national level also have an impact on the functioning of the internal market. The transparency directive from 1989 is the second important legislation for the development of a European market for medicines. Since Member States have the power to organize and finance their health care systems, this directive is limited to procedural obligations for member states. The directive states that a decision has to be made within 180 days, decisions have to be made using objective and verifiable criteria and there has to be an appropriate appeal mechanism [1]. A major change in the market in the last decade is the increasing importance of health technology assessment (HTA), including cost-effectiveness, for decisions about market access. While HTA has been a health policy instrument in Europe since the 1980s, it is only during the last decade that it has been directly linked to decisions about pricing, reimbursement and guidelines for new medicines. The influence of national agencies, such as NICE and IQWIG, has been so great that it can be seen as a step back, toward national decisions about the availability of drugs. A new medicine can be marketed, but without inclusion in national reimbursement systems there is a very limited market in practice. The growing number of orphan drugs and targeted therapies aimed at small patient groups and consequently with high prices has contributed to this. European-wide market authorization in itself has no value for the innovator and does not make a single market working if other restrictions persist on the national level. Since third-party payment for medicines is the fundamental issue, you may argue that the only way to form a single market is to create a single health insurance in Europe. At the moment, patients in Europe have very different health insurance coverage. Health care spending per capita varies with a factor of three, mainly reflecting differences in GDP per capita between EU countries. Health care systems in Europe are converging, but the process is very slow and the relevant question is what can be done now to further develop the European market for medicines. A need for action is also triggered by a third piece of European legislation, the EU directive on patients rights to cross-border health care [2]. The directive is set to clarify the right of patients to seek health care in another EU country while being reimbursed by their national system. It is important for creating a European market for health care and will force health care payers in different countries to harmonize decisions on what they are paying for with their health insurance. A European-wide health insurance is far away, but the need for a policy of harmonization is already here. The key concepts for development of a new policy and potential amendments to legislation to further improve the functioning of the internal market for medicines are assessment of value, access to therapy, and reward for B. Jonsson (&) Stockholm School of Economics, Stockholm, Sweden e-mail: Bengt.Jonsson@hhs.se

Natural hazard insurance in Europe: tailored responses to climate change are needed

AbstractThis paper provides an overview of the existing systems of natural hazard insurance in Europe, their structural characteristics and peculiarities. It also 0discusses the difficulties of adaptation of these systems to climate change and the growing number of natural disasters. Using Germany, Austria and Switzerland as examples, the paper demonstrates that based on the status quo, the Swiss monopoly insurance system, which is embedded within a unique direct voting environment, is most able to reduce micro‐ and macroeconomic disruptions resulting from natural hazards. ‘Change in diversity’ is seen to offer the best chance to arrive at insurance systems that are prepared for climate change while being adapted to local particularities. Efforts to harmonize national and regional systems as well as top‐down EU initiatives are argued to be inadequate. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.