Insurance Market Research Articles

Agent’s roles and perspectives of life insurance market in North-East India

Agent’s roles and perspectives of life insurance market in North-East India

Gendered Market Devices: The Persistence of Gender Discrimination in Insurance Markets

Gendered Market Devices: The Persistence of Gender Discrimination in Insurance Markets

Optimal premium pricing in a competitive stochastic insurance market with incomplete information: A Bayesian game-theoretic approach

This paper examines a stochastic one-period insurance market with incomplete information. The aggregate amount of claims follows a compound Poisson distribution. Insurers are assumed to be exponential utility maximizers, with their degree of risk aversion forming their private information. A premium strategy is defined as a mapping between risk-aversion types and premium rates. The optimal premium strategies are denoted by the pure-strategy Bayesian Nash equilibrium, whose existence and uniqueness are demonstrated under specific conditions on the insurer-specific demand functions. Boundary and monotonicity properties for equilibrium premium strategies are derived.

Challenges and Development of the Insurance Market in Albania

The insurance market in Albania has experienced substantial changes in recent years. This analysis focuses on the structure and performance of the insurance market in Albania, including the main product categories such as compulsory and voluntary insurance. One of the main challenges for the insurance market in Albania is the low level of penetration compared to European standards. Public awareness and promotion of insurance culture are important factors in improving this aspect. The study also addresses legal changes and innovations in the market, including changes in the legal framework and insurance technology. This analysis is based on various sources, including the Financial Supervision Authority (FSA) reports, financial data of insurance companies, and insurance market trends. Understanding these aspects provides a complete overview of the developments and challenges of the insurance market in Albania and brings a basis for the discussion on the growth opportunities of this sector in the future. The methodology provides a structured approach to investigate the challenges and development of the insurance market in Albania in the post-pandemic period. By combining data from various sources, the study aims to produce a comprehensive analysis that can inform policy recommendations and strategic decisions for stakeholders in the Albanian insurance industry. The study revealed that the market demonstrated resilience despite initial disruptions, with a gradual recovery in premium volumes and a rebound in demand for various insurance products. The pandemic accelerated the adoption of digital technologies, leading to improved customer service, streamlined operations, and enhanced data management.

The asymmetric and time-varying effects of trade policy uncertainty on the insurance premiums in China: Evidence from cross-quantilogram

This study investigates the asymmetric and time-varying effects of trade policy uncertainty (TPU) on China's insurance premiums by applying the bivariate cross-quantilogram approach across different quantiles of TPU. The results suggested that the impacts of TPU on the insurance market are different across different quantiles of TPU, indicating an asymmetric effect. Besides, the effect of TPU on insurance markets is time-varying when considering different time horizons ranging from 1 to 24 months. In the short run, TPU negatively impacts the insurance market, while, in the long run, insurance premiums increase with the increase of TPU.

The main determinants of the absorptive capacity of the Egyptian insurance market using statistical analysis

This research aims to use a statistical and economic model that takes into account all the emerging economic, social and financial variables in the framework of the new world order and the new general situation to determine the most important basic determinants affecting the volume of demand and the supply of insurance policies for each branch of insurance separately. To maximize its financial, economic and social return, that is, to determine the factors affecting the absorptive capacity of the Egyptian insurance market using some statistical models. It was found that the best regression models that can be used to describe the relationship between the number of insurance policies and the economic variables used in the study is the semi-logarithmic model, and the size of insurance amounts is related to a group of economic variables at the national level, including: population - size of the labor force - birth rates, and it is also related to per capita GDP.

Accessing the impact of farmers’ awareness level and risk management perception on agriculture insurance satisfaction: Mediating role of non-financial satisfaction

Despite the government’s financial support and promotion by the regulator, the agriculture insurance market is still in the nascent stage in Nepal. The paper aims to examine how awareness level and risk management perception affect the farmers’ satisfaction, taking non-financial satisfaction as a mediating factor. The study was conducted in two metropolitan cities, Pokhara and Bharatpur, in Nepal. Cluster and purposive sampling design was applied to select the respondents. Opinions were obtained through the structured questionnaire from 400 farmers with experience in agriculture insurance. The survey instrument had two parts. The first part was related to demographic information, while the second part measured attitude to risk management, clients’ awareness of insurance, financial satisfaction, and non-financial satisfaction. Almost three forth of the respondents (74.75%) were males and more than half (52%) possessed more than 8 ropani of land. Descriptive statistics, inferential statistics, exploratory factor analysis, confirmatory factor analysis and structural equation modelling were used to arrive at conclusions. The results revealed that respondents’ awareness toward agriculture insurance is the most agreed construct (mean = 4.35), followed by financial satisfaction (mean = 3.88), non-financial satisfaction (mean = 3.70), and risk management attitude (mean = 3.5). Although the results did not confirm the mediating effect of non-financial satisfaction on financial contentment and awareness level, a partial mediation effect exists between risk management attitude and financial satisfaction. Financial serenity and non-financial gratification have the strongest association. This study suggests executives and regulators expand risk management capacity and awareness initiatives to increase client satisfaction and loyalty to crop insurance. AcknowledgmentThe University Grants Commission, Nepal, is acknowledged for the financial support to conduct the study under the FRG MGMT 4-2019/20. The support of MBA students Mr. Dhan Bahadur Jagari and Lalit Bahadur Shahi is highly appreciated for their fieldwork as enumerators.

Essence and stages of e-insurance development in Ukraine

The digitalization of all economic sectors, Ukraine's path to European integration, and the need for consumers to have fast, remote, and convenient insurance services highlight the relevance of implementing electronic insurance in the insurance market. This paper is dedicated to defining the essence of electronic insurance in the context of the digitalization of the insurance market and exploring the main stages of the development of electronic insurance in Ukraine, which has undergone rapid and technological changes since the first sale of an electronic compulsory civil liability insurance policy in 2018. Legislative and regulatory acts governing the process of electronic insurance have been studied. It has been found that the introduction of the electronic compulsory civil liability insurance policy, and later the electronic Green Card, has had a maximally positive impact on the development of the insurance market as a whole and has become an integral part of its innovative and technological breakthrough. It is emphasized that market participants have received additional technological tools for conducting their activities, which positively affects the development of their business and the insurance market as a whole. The further application of digital technologies, artificial intelligence, implementation of customer-oriented interface solutions, integration of all insurance products, and corresponding legislative groundwork will lead to the gradual increase of the share of electronic insurance in Ukraine, which will positively impact the entire financial market and economy in general. It is proven that the establishment of electronic insurance is an integral part of the development of the digital economy and innovative technologies in all areas of economic activity. E-commerce, electronic document management, 4-5G communication, the relentless shift of consumers to touchscreen phones, the use of technological and convenient mobile applications, the implementation of CRM systems, and various innovative solutions have allowed the provision of insurance services to reach a new level while optimizing costs.

Essence and stages of e-insurance development in Ukraine

The digitalization of all economic sectors, Ukraine's path to European integration, and the need for consumers to have fast, remote, and convenient insurance services highlight the relevance of implementing electronic insurance in the insurance market. This paper is dedicated to defining the essence of electronic insurance in the context of the digitalization of the insurance market and exploring the main stages of the development of electronic insurance in Ukraine, which has undergone rapid and technological changes since the first sale of an electronic compulsory civil liability insurance policy in 2018. Legislative and regulatory acts governing the process of electronic insurance have been studied. It has been found that the introduction of the electronic compulsory civil liability insurance policy, and later the electronic Green Card, has had a maximally positive impact on the development of the insurance market as a whole and has become an integral part of its innovative and technological breakthrough. It is emphasized that market participants have received additional technological tools for conducting their activities, which positively affects the development of their business and the insurance market as a whole. The further application of digital technologies, artificial intelligence, implementation of customer-oriented interface solutions, integration of all insurance products, and corresponding legislative groundwork will lead to the gradual increase of the share of electronic insurance in Ukraine, which will positively impact the entire financial market and economy in general. It is proven that the establishment of electronic insurance is an integral part of the development of the digital economy and innovative technologies in all areas of economic activity. E-commerce, electronic document management, 4-5G communication, the relentless shift of consumers to touchscreen phones, the use of technological and convenient mobile applications, the implementation of CRM systems, and various innovative solutions have allowed the provision of insurance services to reach a new level while optimizing costs.

Design and study of hybrid BI insurance contracts with interruption compensation, reward, and penalty under adverse selection

AbstractAiming at the adverse selection problem in the BI insurance market under asymmetric information, this paper designs a hybrid BI insurance contract with interruption compensation, reward, and penalty based on the principal‐agent theory. It is found that regardless of the existence of two or more risk types in the BI insurance market, the hybrid BI insurance contract will be a strict Pareto improvement of the traditional partial insurance contract that is replicated twice. Meanwhile, we validate and extend the above conclusions through an arithmetic example, which provides more comprehensive theoretical support for insurance companies to design new BI insurance.

Determinants of the Behaviour of Entities on the Insurance Market in the Light of Changes Introduced by the IDD Directive

AbstractOne of the most significant legal acts concerning the sale and management of insurance risk was issued on January 20, 2016, based on Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (IDD Directive). The adoption of European IDD principles aims to enhance transparency in the operations of insurance distributors and improve the standards of their business practices. Its protective scope encompasses all individuals and entities involved in the sale of insurance products. The aim of the article is to ascertain the regulatory authorities’ impact on the insurance market, consideration of consumer protection, in light of the changes introduced by the IDD directive. The primary entities under examination, in the mentioned context of consumer protection, are distributors and supervisory authorities. The discussion includes an overview of the scale of the insurance market and its fundamental applications, as well as compliance within the framework of behavioural economics theory. Additionally, the paper addresses the aspect of threats posed to consumers by the analyzed changes in the European insurance distribution market. In this segment, the authors concentrate on the economic and social ramifications of IDD implementation for entities operating within the insurance market. The concluding section outlines the potential for development and the future prospects of financial intermediation concerning IDD utilization.

ASURANSI SYARIAH : BAGAIMANA KEDEPANNYA?

Syarikat Takaful Indonesia (Takaful Indonesia) in 1994. The research method used in this research is literature study (Case Study) analyzing from books or various studies that have been done previously. This study aims to critically examine sharia insurance and what will happen in the future? The result of this research is that the birth of Takaful Indonesia as a holding company for PT Asuransi Takaful and PT Asuransi Takaful Umum, the first Life and General Sharia Insurance in Indonesia, is the result of commitment and concern for various elements of the nation towards the development of the sharia economy, especially sharia insurance in Indonesia. According to OJK data, as of November 2019, sharia insurance assets against conventional insurance showed a figure of 6.17% or Rp 44.75 trillion (OJK, 2019). To improve and enhance the promotion of the sharia insurance market, support from all parties, be it the government, industry and stakeholders, especially in an effort to increase sharia insurance literacy effectively and massively through socialization of public education.

Problems and perspective of developing insurance in the international tourism business

An increasing number of tourists face risks and unforeseen situations while travelling: the limited availability of insurance products, deficiencies in risk coverage, and the failure to meet individual needs make relevant the issue of insurance in the international tourism business. The purpose of the article was to analyse current problems in the field of insurance at the international level and to highlight possible ways to solve them, as well as to determine the prospects for the development of this segment aimed at ensuring maximum safety and convenience for tourists. The article examines the state and prospects for the development of the international market of travel insurance services. With the application of the analysis method, a thorough review of the shortcomings in the activities of insurance companies was carried out, which made it possible to clearly determine the level of importance and provide practical recommendations for their solution. The abstract-logical method was applied to make conclusions based on the study of policyholders’ behaviour, their tendency to risk, and the choice of insurance products. The increase in the volume of tourist trips in the world is accompanied by the increase in appropriate insurance. It causes insurance companies and tour operators a number of problems, such as insufficient adaptation of insurance products to the needs and risks of tourists, limited geographical coverage, and complex registration and compensation procedures. However, there are also prospects for the development: new technologies, such as artificial intelligence and blockchain, which can contribute to the automation and facilitation of insurance processes. Expanding geographic coverage and adapting insurance products to the specific needs of tourists can also ensure the growth of the insurance market in international tourism. The practical value of the conducted research is determined by the development of recommendations for international insurance companies aimed at overcoming problems and reducing risks in the field of travel insurance, both for representatives of the insurance business and for travellers

Smoking and risk for morbidity and mortality in patients who undergoes coronary artery bypass grafting

Abstract Background The association between smoking and prognosis after coronary artery bypass grafting (CABG) is sparsley studied. The few previous studies investigating this association show conflicting results. Purpose The purpose was to explore the association between smoking and long-term risk for morbidity and mortality in patients undergoing CABG. Methods Data from the SWEDEHEART registry were used to identify all patients who underwent isolated CABG in Sweden from 1992 to 2020 and smoking status at time for surgery. Three other mandatory national registries were used to collect data for comorbidities, social factors, and death (Swedish National Inpatient Register, Longitudinal Integration Database for Health Insurance and Labor Market Studies and, Swedish Cause of Death Register). Cox regression models adjusted for age and sex, comorbidities and social factors were used to assess the risk for all cause death, stroke, myocardial infarction. Mean follow-up time was 5.2 years (range 0-10). Results In total, 27,434 patients aged >18 years were identified (18.2% women). The study population was divided into; never smoker (n=8593), former smoker (n=14666) and current smoker (n=4175). The proportion of previous ST Elevation Myocardial Infarction (STEMI), heart failure, previous stroke, peripheral vascular disease, chronic respiratory disease, depression, low education was higher in current smokers than in non-smokers. Compared to never smokers, current smokers had a higher risk for all-cause death (adjusted Hazard ratio (aHR) 1.36 (95% Confidence interval (CI) (1.22-1.52)) and stroke (aHR 1.39 (1.18-1.64)) but not for myocardial infarction (aHR 1.03 (0.87-1.21). Former smoker had higher risk for all cause death (aHR1.17 (1.08-1.28)) compared to never smokers but no increased risk for myocardial infarction 0.91 (0.81-1.03) and stroke (aHR 1.11 (0.98-1.25). Conclusion There is a strong association between smoking at the time for surgery and long-term risk for worse prognosis after CABG. The results emphasize the importance of encouraging and motivate CABG patients to smoking cessation.

International practice of the bonus-malus system

Purpose of the research – evaluation of the eff ectiveness of the "bonus-malus" in the class of compulsory insurance of civil liability of vehicle owners and the identification of the conceptual foundations of compulsory insurance of civil liability inherent in the experience of foreign countries, as well as the development of proposals to improve the rules of this insurance. Methodology – the methodological basis of the research was the works and publications of foreign economic scientists, a set of general scientifi c and private methods of scientific cognition (analytical, systematic method, analysis, synthesis, comparison, etc.). Originality / value – in order to ensure a balance with favorable values of compulsory civil liability insurance, methodological approaches to the modernization of the bonus-malus system are provided and determined by the expediency and possibility of use in the insurance market of kazakhstan. Findings – it provides for the use of optimal ways of differentiating insurance tariff s by domestic insurance companies, taking into account the degree of risk and interests of policyholders of various categories, and maintaining the availability of tariffs for a wide range of consumers of insurance services.

A buy-hold-sell pension saving strategy

We propose a ‘buy, hold, sell’ (BHS) deterministic lifecycle strategy that involves buying and holding assets until they are sold to generate income. Savings are invested entirely into a risky portfolio until a pre-specified ‘switch age’ and then entirely into a risk-free portfolio after the switch age, followed by withdrawing during the payout phase from both portfolios based on annuitization factors that vary with age. We also allow for access to mortality credits through an insurance market. We analytically derive the dynamics of the investment strategy and show that the strategy is optimal for a range of investors with HARA risk preferences. We demonstrate numerically that the BHS strategy delivers limited loss of utility versus an optimal solution for investors with CRRA preferences and low-moderate levels of risk aversion while significantly outperforming deterministic strategies commonly seen in practice. The BHS strategy offers an attractive alternative for practical applications as it is straightforward to apply while avoiding the need for dynamic optimization and portfolio rebalancing.

Russian mutual insurance market: Limitations for development

Aim. To assess the practical significance of the possible implementation of some proposals aimed at the development of the insurance market, based on the analysis of statistical data on the activities of insurance organizations and mutual insurance societies, particularly in the field of insurance of civil liability of notaries.Objectives. With the help of statistical data on the activity of insurance organizations and mutual insurance societies to identify the practical significance of the initiative and its impact on the development of mutual insurers in the insurance industry.Methods. The present study is built on the basis of empirical methods such as observation, comparison, generalization, induction, deduction.Results. The authors analyzed the activity of insurance companies in 2023 in the aspect of insurance organizations and mutual insurance societies, including the impact and significance of the type of insurance of civil liability of notaries on the insurance industry. Taking into account the actually full coverage of notaries by insurance services required by law, there are no problems in the conclusion and execution of these insurance contracts, according to the author’s position. The presence of an insignificant number of insurance organizations in this segment and small volumes of premiums in relation to the total premium collections indicate a low interest of insurers in this type of insurance. Today the market of compulsory insurance of notaries is actually covered and closed for new players. The authors believe that admission of mutual insurers to this segment will not practically lead to the development of mutual insurance and improvement of the insurance market as a whole.Conclusions. Despite the tasks set by supervisory and regulatory authorities to strengthen and develop the insurance market, the initiatives put forward to modernize the mutual insurance market are noteworthy and are certainly important, timely, but insufficient for the realization of the set tasks. The authors conclude that the admission of mutual insurers only to the market of notaries’ liability insurance will not be a significant stimulus for the development of mutual insurance and improvement of the Russian insurance market.

Impact of differences between the Nuclear Law Act and the Vienna Convention on Civil Liability for Nuclear Damage on the Terms and Conditions of Nuclear Civil Liability Insurance2nd Part

This article is the second part of the publication with the same title, which appeared in the issue no. 4/2023 of the “Insurance Law”. The first part discussed selected differences in the regulation of civil liability of the operator of a nuclear installation for nuclear personal injury between the Nuclear Law Act and the Vienna Convention. Those included the definition of nuclear personal injury, the limitation period for claims for such injury and the rules for seeking compensation thereof. The Vienna Convention sets minimum protection standards in the event of nuclear damage, which has served as a benchmark for developing the principle of civil liability insurance of the operator of a nuclear installation for nuclear damage.The second part of the article deals with practical issues and provides a summary of the most crucial information concerning nuclear insurance market. It clarifies the notion of a nuclear insurer and their available insurance options. It also discusses the major elements of the civil liability protection for nuclear damage which differ from the rules of the insured’s civil liability specified by law. Finally, it addresses obstacles which may hinder the offering of this type of insurance as compulsory insurance under national legislation. This Article concerns solely the rules for civil liability for nuclear personal injury suffered as a result of operating the nuclear power plant. Insurance aspects related to the transport of nuclear material from nuclear facilities, the operation of research reactors and radioactive waste repositories have been omitted.

SARIMA Model-Based Monte Carlo Simulation of Option Contract Design for Maize Seasonal Heavy Precipitation in Shenyang

Agricultural production is highly dependent on weather conditions such as temperature, light, water and heat. The huge loss caused by extreme disaster weather makes the global insurance and reinsurance market overwhelmed, and seriously affects the enthusiasm of agricultural investment and the development of agricultural economy. With unique topography and vast territory, China is vulnerable to complex and diverse climate disasters. In recent years, the annual average economic loss caused by extreme weather disasters has reached about 200-300 billion yuan, among which floods caused by extreme heavy rainfall are the main agricultural disasters in China. In order to enhance the "farmer - insurance company - government" interest association to resist the risk of flood disaster caused by extreme heavy rainfall, financial hedging derivatives of weather disaster risk have gradually become a new hedging tool besides traditional insurance and reinsurance. This paper takes Shenyang, the main grain producing area in northeast China, as the sample of the study area, and uses the SARIMA model to obtain the distribution characteristics of seasonal rainfall time series. Different seasonal rainfall index option products (call option and put option contracts) are designed respectively, and the final option pricing is obtained by Monte Carlo stochastic simulation. The seasonal rainfall call option and put option contracts have opened up a new hedging model of agricultural extreme weather catastrophe outside the insurance and reinsurance market, which has enriched the varieties of weather financial derivatives market in China, reduced the severe impact of extreme weather disasters on agriculture, and enhanced the ability of agricultural stakeholders to resist the risk of extreme weather disasters.

Eliciting Customers’ Preferences in the Cooperative Insurance Industry: Evidence from the Saudi Motor Insurance Market

This research aimed to provide a better understanding and analysis of consumer patterns relative to behavioral preferences in the Saudi cooperative motor insurance market. This aim was motivated by the fact that customers’ preferences have been underexplored in this market. Thus, this paper applied a multi-attributes decision analysis methodology to analyze the decision process of purchasing or retaining cooperative motor insurance based on a discrete choice experiment and a choice-based conjoint analysis. The methodology was conducted via a designed questionnaire that asked 385 customers in the Eastern Region to choose between a finite set of decision purchase options that varied along three key attributes: type of coverage, availability of discount, and insurance premium. Sample results showed that the most important attributes were the insurance premium, followed by the type of coverage. The availability of a discount was the least important attribute; however, compared with men, women placed a higher importance on coverage and discounts. The findings can be valuable to policymakers and managers of insurance companies in designing new characteristics for cooperative motor insurance products in Saudi Arabia in line with Saudi Arabia’s Vision 2030. JEL Classification: C9, D7, C13, G22