Insurance Research Articles

근로장려금과 고용안전망 연계 필요성과 과제

The Earned Income Tax Credit (EITC) was significantly expanded in 2019, making it the main income support scheme for the working poor. This paper analyzes whether the EITC improves labor market outcomes for recipients. We find no evidence that it increases work by increasing the number of days or hours worked, or increases earnings. There is a need to provide the employment safety net to help the EITC recipients get better jobs. First, 30% of the EITC recipients look for a job. There is a need to encourage them to participate in the National Employment Support System, which provides both income support and employment service for the vulnerable job seekers who do not receive unemployment insurance benefits. Second, only 40% of the EITC recipients are enrolled in social insurance. It is necessary to strengthen social protection against the social risk by supporting social insurance premiums for the EITC recipients.

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.

Exploring the use of seasonal forecasts to adapt flood insurance premiums

Exploring the use of seasonal forecasts to adapt flood insurance premiums

The Influence of Clan Culture on the Demand for Family Commercial Health Insurance: The Case of China

This article examines the reasons for the underdevelopment of commercial health insurance as a family risk-sharing mechanism, from the viewpoint of traditional Chinese clan culture. Using genealogical data to create city-level indicators of clan culture, this study investigates its impact on the demand for family-oriented commercial health insurance. The results indicate a negative correlation between the intensity of clan culture and the demand for family commercial health insurance, and a smaller percentage of income allocated to health insurance premiums in areas with stronger clan culture. This crowding-out effect primarily occurs through bilateral transfer payments encouraged by mutual aid among clan members.

Research on Changes in Travel Insurance Premiums Driven by Climate Change: A Case Study of Hong Kong Region

This research aims to study the impacts of climate change on worldwide general travel insurance in Hong Kong and to provide a scientific basis for premium pricing strategies in a climate-driven context. The study adopts both qualitative and quantitative research methods to reveal the relationship between climate change and travel insurance. The qualitative analysis part constructs a theoretical framework through literature review. Taking into account the current state of research, the impact of climate change on the demand for travel insurance as well as the challenges and opportunities of premium pricing strategies are discussed in depth. The quantitative analysis section collected data on flights at the Hong Kong International Airport (departures, delays, and cancellations) and travel insurance claim occurrence. The weather conditions were also checked through the weather website to analyze the correlation between climate factors and insurance claims. The findings indicated that climate change has a significant impact on the demand for travel insurance, especially during the prolonged rainy season in Hong Kong, when extreme weather events lead to an increased risk of cancellation or delay of travel plans. Meanwhile, the quantitative analysis results demonstrated a significant correlation between weather factors and flight status and insurance occurrence, which provided empirical evidence for risk assessment and premium pricing of worldwide travel insurance in Hong Kong.

Willingness to Pay for Cattle Insurance in Nepal: A Double-Hurdle Model Perspective

Since the adoption of the Crop and Livestock Insurance Directives in 2013, the adoption of livestock insurance has gained popularity in Nepal. In the eight years since implementation, adoption rates have remained low, even with 80% government premium subsidies. This study uses a double-hurdle model for quantitative analysis and focuses on the determinants of willingness to pay (WTP) for cattle insurance. The research identifies significant factors influencing insurance adoption decision, including positive impacts from farmer’s age, education, livestock loss history, awareness of insurance, dairy farm income, number of cattle, and loan access. However, male gender, extensive cattle rearing experience, and larger households negatively affect willingness to insure. A number of factors affect premium determination, including age, size of household, livestock loss, off-farm income, number of cattle, and loan accessibility; on the other hand, factors that have a negative impact on premium levels include breed type, marital status, and revenue from dairy farms. According to the findings, the annual WTP for cattle insurance among dairy farmers varies from $48 to $71 (NRs. 6315-9341), with an average of $58 (NRs. 7631). Interestingly, the majority of farmers demonstrate their commitment to risk management by accepting premiums equal to 5% of the value of the cattle. The research contributes to understanding livestock insurance premiums in developing countries, specifically in Nepal, and suggests a scope for extending insurance programs, while also noting a gap in awareness among dairy farmers regarding government subsidy programs.

Disparities in Overall Survival Rates for Cancers across Income Levels in the Republic of Korea.

The overall survival rates among cancer patients have been improving. However, the increase in survival is not uniform across socioeconomic status. Thus, we investigated income disparities in the 5-year survival rate (5YSR) in cancer patients and the temporal trends. This study used a national cancer cohort from 2002 to 2018 that was established by linking the Korea Central Cancer Registry and the National Health Insurance Service (NHIS) claim database to calculate the cancer survival rate by income level in the Republic of Korea. Survival data were available from 2002 onward, and the analysis was based on the actuarial method. We compared the survival of the earliest available 5-year period of 2002-2006 and the latest available 5-year period of 2014-2018, observing until 31 December 2021. Income level was classified into six categories: Medical Aid beneficiaries and five NHIS subtypes according to insurance premium. The slope index of inequality (SII) and relative index of inequality were used to measure absolute and relative differences in 5YSR by income, respectively. The 5YSR between the 2002-2006 and 2014-2018 periods for all cancers improved. A significant improvement in 5-year survival rates (5YSR) over the study period was observed in lung, liver, and stomach cancer. The SII of survival rates for lung (17.5, 95% confidence interval (CI) 7.0-28.1), liver (15.1, 95% CI 10.9-19.2), stomach (13.9, 95% CI 3.2-24.7), colorectal (11.4, 95% CI 0.9-22.0), and prostate (10.7, 95% CI 2.5-18.8) cancer was significantly higher, implying higher survival rates as income levels increased. The SII for lung, liver, and stomach cancer increased, while that of thyroid, breast, cervical, prostate, and colorectal cancer decreased over the study period. Although substantial improvement in the 5YSR was observed across cancer types and income levels from 2002 to 2018, this increase was not uniformly distributed across income levels. Our study revealed persistent income disparities in the survival of cancer patients, particularly for lung and liver cancer.

A Comprehensive Research Agenda for Integrating Ecological Principles into the Transportation Sector

The paper examines the integration of novel Transportation Ecology principles into transit operations, aiming to address the environmental impacts associated with surface services in urban areas and with the purpose of creating a comprehensive agenda for integrating ecological principles into transit planning and management. The research problem is to quantify the tangible benefits for transit operators, particularly in the context of mitigating wildlife-vehicle collisions and improving overall operational efficiency as a motivator for transit managers to adopt Transportation Ecology principles. The study design, after analyzing the regulatory requirements, implements scenario-based methodology, utilizing data from an average Italian bus fleet to estimate potential monetary savings and benefits. Key parameters, such as maintenance costs, insurance premiums, and collision-related expenses, are analyzed to provide a realistic assessment of the economic advantages of implementing Transportation Ecology measures. The findings reveal that significant cost reductions can be achieved by minimizing accidents involving wildlife, alongside other operational improvements. The scenario demonstrates that even a small fleet, when adopting these principles, can yield substantial financial benefits, thereby making a compelling case for broader implementation. The paper concludes that while the qualitative nature of the analysis necessitates conservative estimates, the results underscore the value of incorporating ecological considerations into transit planning and management. These insights are vital for transit operators and policymakers seeking to balance environmental sustainability with operational profitability and protect urban ecosystems. This also implies the need for a more holistic and interdisciplinary approach to transportation planning and management.

Rotator Cuff Tears, Repairs, and Shoulder Arthroplasties Among Workers' Compensation Claimants: A 16-year study of workers' compensation claims from a large nationwide workers' compensation insurance carrier.

Rotator cuff repair (RCR) is increasingly being performed for both acute traumatic and degenerative tears of the rotator cuff, while total shoulder arthroplasty (TSA) is reserved for osteonecrosis of the humeral head, arthritis of the glenohumeral joint and failed RCR. To assess the incidence and patient characteristics of rotator cuff tears (RCTs), RCRs, and TSAs among workers' compensation (WC) claimants. 8,347 RCT indemnity claims filed to Accident Fund Group from 2007 to 2022 were studied. Over the study period, the percentages of RCTs increased from 41% to 65% among shoulder injury indemnity claimants, RCRs increased from 88% to 92% of RCTs and TSAs increased from 1% to 5%. RCT, RCR, and TSA have increased dramatically among WC claimants, age of the injured worker being the primary determinant of the increase.

Insurance Types and All-Cause Mortality in Korean Cancer Patients: A Nationwide Population-Based Cohort Study.

Economic deprivation is expected to influence cancer mortality due to its impact on screening and treatment options, as well as healthy lifestyle. However, the relationship between insurance type, premiums, and mortality rates remains unclear. This study investigated the relationship between insurance type and mortality in patients with newly diagnosed cancer using data from the Korean National Health Insurance Database. this retrospective cohort study included 111,941 cancer patients diagnosed between 1 January 2007 and 31 December 2008, with a median follow-up period of 13.41 years. The insurance types were categorized as regional and workplace subscribers and income-based insurance premiums were divided into tertiles (T1, T2, and T3). Cox proportional hazards regression analysis adjusted for age, lifestyle factors, health metrics, and comorbidities showed workplace subscribers (n = 76,944) had a lower all-cause mortality hazard ratio (HR) (95% confidence interval [CI]: 0.940 [0.919-0.961]) compared to regional subscribers (n = 34,997). Higher income tertiles (T2, T3) were associated with lower mortality compared to the T1 group, notably in male regional and workplace subscribers, and female regional subscribers. The study identified that insurance types and premiums significantly influence mortality in cancer patients, highlighting the necessity for individualized insurance policies for cancer patients.

The Economic Impact of Covid-19 pandemic on Labor Market and Stock Market

The pandemic has caused severe unrest and uncertainty in the labor market. Share prices have fallen sharply. However, the reasons behind it and the related policy effects still lack a unified explanation and summary. Therefore, the topic of this paper is the impact of the epidemic on the labor force and the stock market. The research method of this paper is as follows: firstly, the relevant data such as unemployment rate, hiring ratio and purchasing manager index are collected, and then the data are analyzed. The study found that the main reasons for the decline in labor demand may include business shutdowns, more cautious business investment and the psychological impact on workers. Fears of a potential recession, supply chain disruptions and uncertainty over the duration and severity of the outbreak have driven the rapid fall in share prices. The relevant policy recommendations further encourage local governments to use the surplus funds from unemployment insurance and other sources to support enterprises in maintaining employment stability. This paper will encourage the implementation of policies that delay or partially refund social security contributions. And strengthen the strategy of partially refunding unemployment insurance premiums, promoting local employment opportunities, and providing subsidies to ensure the overall stability of the employment situation. These policies are constantly evaluated and adjusted in light of changing economic conditions and employment trends to help maintain employment levels and support businesses during difficult times.

Premium Calculations with Long Term Care Insurance using Markov Chain Method for Human Immunodeficiency Virus Inpatients

<strong> </strong>Indonesia has a high prevalence of HIV, which is inversely proportional to its insurance product propolis. Life insurance offers economic protection by providing payment upon the death of the policyholder. Long Term Care (LTC) insurance, a type of health insurance, guarantees care and health insurance for the elderly. This study calculates LTC insurance premiums with annuities as rider benefits using a multi-status model that includes health status, HIV, and death. Using Markov Chain modeling and data from Malang city in 2022, we determine the premium based on transition probabilities. This case study involves a 20-year-old man with 5 years of LTC coverage, a benefit value of IDR100,000,000, and an interest rate of 5%. The premium varies by age and gender: at age 20, male pay Rp 2,719,241 and female Rp 2,701,893, at age 21, male pay Rp. 5,762,095 and female pay Rp.5,746,178. At age 22, male pay at Rp. 6,203,680 and females pay Rp.6,189,454 while at age 23, male pay Rp. 6,640,674 and females pay 6,628,146. And male at 24, pay Rp. 7,066,949 while females pay Rp. 7,012,138 and at age 25, male pay Rp 7,068,616 and females Rp 7,029,781. The results of this calculation show that the more age increases, the greater the net premium and also the male net premium is greater than the female net premium

Public value judgments about the criteria for reimbursement of medicines in South Korea

ABSTRACT Objectives This study quantified the public value (PV) of the criteria and sub-criteria in the current drug reimbursement systems in South Korea and examined sociodemographic factors that associated with PV. Methods The Analytic Hierarchy Process (AHP) was used to quantify the PVs of criteria and sub-criteria. We developed a questionnaire to generate pairwise comparison matrices among criteria and sub-criteria. From 27 March to 1 April 2023, we recruited 1,000 study participants using a quota sampling method stratified by age, sex, and region based on Korean census data. Results The PVs for the criteria were highest for clinical usefulness (28.5%), followed by cost-effectiveness (27.1%), budget impact (24.3%), and reimbursement in other countries (20.1%). The sociodemographic characteristics of the participants had a significant impact on the PVs of the criteria. Willingness to pay additional premiums for national health insurance was negatively associated with PV for clinical usefulness and cost-effectiveness and positively associated with PV for reimbursement in other countries. Conclusions The public prioritized clinical usefulness and cost-effectiveness as the main criteria. However, the PVs of the criteria were divergent and associated with sociodemographic factors. Divergent public interests require an evidence-informed deliberative process for reimbursement decisions.

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.

Uniform Distribution of Deaths, Fractional Independence, and Negative Payment-Frequency*

Under the assumption of a uniform distribution of deaths (UDD), the expected present value of a life annuity with level payments payable m times a year can be expressed in terms of that payable once a year, together with some quantities that depend on interest only. By studying the expected annuity cashflows in the year of death, we determine the financial meaning of these interest-only quantities. Our analysis can be extended to the more general assumption of fractional independence (FI). Under the FI assumption, we express premium and reserve formulas for insurance with premiums payable m times each year in terms of those with premiums payable only once each year. We also discuss an intriguing concept called negative payment-frequency.

Oregon's Hospital Payment Cap and Enrollee Out-of-Pocket Spending and Service Use

Enrollee cost-sharing and health insurance premiums have grown alongside rising hospital prices. To control prices and price growth, the Oregon State Employee plan instituted a cap on hospital facility payments in October 2019 that was found to reduce hospital prices. Yet the program's association with out-of-pocket spending and use among enrollees is unknown. To assess the association of the Oregon State Employee Plan's hospital payment cap with out-of-pocket spending and changes in service use among state employees enrolled in higher cost-sharing plans. Using data from the Oregon All Payer All Claims database (January 2014 to December 2021), a difference-in-differences analysis was conducted to examine the association of Oregon's hospital payment cap with enrollee out-of-pocket spending and service use. The main analysis focused on the outpatient setting, where there were significant declines in hospital prices. Changes in a subpopulation of employees enrolled in higher cost-sharing plans were also examined. The primary outcome was outpatient out-of-pocket spending per procedure, which included the copayment, coinsurance, and/or deductible paid at the point of service. Changes in service use were also examined by counting the number of outpatient procedures received per enrollee per year. The outpatient sample included 1 094 083 procedures from 92 523 Oregon educators and 4 510 342 procedures from 473 621 control enrollees. During the period before implementation, Oregon educators had higher out-of-pocket spending per outpatient procedure than the control group ($69.26 vs $41.87). The hospital payment cap was associated with a $6.60, or 9.5%, reduction in out-of-pocket spending per procedure (95% CI, -12.7 to -0.5) and a 0.24, or 4.8%, increase in the number of outpatient procedures received per enrollee per year (95% CI, 0.09-0.39) among those in higher cost-sharing plans. Enrollees receiving outpatient services from October 2019 through December 2021 saved an estimated $1.8 million. However, savings for the state were $10.3 million less than they would have been absent increases in service use. The study findings suggest that enrollees may benefit from reduced out-of-pocket spending due to hospital price regulations, but states should be mindful that price regulations may inadvertently increase health care service use.

Analyzing the dependency of earthquake insurance premium on the intensity measure used in probabilistic seismic hazard analysis and fragility curves

Considering the uncertainties associated with earthquake, seismic response of structures, damage caused by the response and the repair costs, determining Earthquake Insurance Premium (EIP) is a challenging task that requires a framework for modeling all inherent risks. Most of the models proposed for EIP determination have two basic components. The first component indicates the probability of seismic hazard (generally obtained from the probabilistic seismic hazard analysis), and the second component indicates the probability of occurrence of a given damage to the structure with respect to different seismic hazard levels (generally obtained from the fragility curves). These two components are interconnected through an intermediate parameter, known as the Intensity Measure (IM), which is of great importance in calculations and has hardly been considered so far. In this study, the dependency of EIP on the IM used in the probabilistic seismic hazard analysis and the fragility curves is analyzed. To this end, the EIP was determined for five types of buildings at low, medium and high seismic hazard levels using two IMs (peak ground acceleration and first mode spectral acceleration). The results of this study warn that the EIP can be highly dependent on the IM, so that for all studied structures, the EIP determined based on peak ground acceleration at a high seismic hazard level is nearly three times as many as the one determined by the first mode spectral acceleration. A significant finding is that when the first mode spectral acceleration is used as the IM, the ratio of EIP at different seismic hazard levels closely matches the ratio of IM at the same levels. This result can be valuable in developing insurance codes and regulations. However, this is not the case for the currently used IM, i.e., peak ground acceleration.

Mitigasi Penyebab Risiko Usahatani Kopi Arabika (Studi Kasus pada Kelompok Tani Hutan Giri Senang, Kampung Legok Nyenang, Kecamatan Cilengkrang, Kabupaten Bandung)

The Giri Senang Forest Farmer Group (KTH) has experienced a significant decline in arabica coffee production over the past few years. This indicates the existence of risks that need to be addressed immediately. The research was conducted with the aim of identifying the causes of risks in arabica coffee farming, understanding the mitigation actions that have been taken by KTH Giri Senang, and proposing mitigation actions that can be implemented to overcome these problems. The research was carried out using descriptive qualitative analysis with a case study research technique. The causes of risk were identified using a Fishbone Diagram and analyzed with the Failure Mode and Effect Analysis (FMEA) method. Based on the results of the research, there are 7 priority risk causes out of 26 total causes: unfavorable weather, leaf rust disease, insufficient or excessive rainfall, leaf spot disease, coffee berry borer pests, weather changes due to the La Nina-El Nino phenomenon, and lack of pruning. Mitigation actions that have been taken include making a holding pond, using pesticides, traps, pest control agents, harvesting spoils, and sanitation to eradicate pests and diseases, as well as forming a Pest Control Team. Proposed mitigation actions that can be implemented include organizing agricultural insurance, subsidizing insurance premiums, making holes or roraks, switching to organic farming, using spare harvest bags, collaborating with educational or research institutions, holding discussion forums for farmers, and creating video tutorials and educational content as alternative extension activities.

Employer Strategies for Health Care Price Transparency.

This paper describes hospital, insurance, and pharmaceutical price transparency policies and applications in the United States and in selected countries around the world. Many of these policies apply to self-insured employers. So far, the experience in the United States and elsewhere is clear that federal and state price transparency regulations have had little impact on whether employees or dependents search for low-cost or high-quality providers or on the cost and quality of their health care. This is because of weak regulatory oversight, conflicting federal and state reporting requirements, and few economic incentives for providers and insurance companies to supply easily readable or analyzable price information. However, price transparency requirements are here to stay. This paper therefore offers several recommendations to maximize the utility of price transparency tools provided for employees and other insureds, by their employers, providers, commercial insurance carriers, or technology firms. From a policy perspective, coupling reporting requirements with clearer technological guidance and much stronger regulatory oversight would increase the utility of price transparency efforts. For individual employers, the impact of price transparency efforts may increase by coupling price transparency tools with health plan network and design strategies, behavioral economic nudges, and programs designed to improve health, well-being, and quality of care. Many program vendor partners, consultants, and actuarial, technology, and research firms can help make these efforts useful.

Joint-Life Endowment Insurance Premium Calculation Based on Makeham Mortality Law

<p>This research determined life insurance premiums joint-life endowment insurance, that is the insurance that the benefit is paid if one of the insureds dies or all the insureds survive until the end of the contract. This premium calculation uses one of the famous mortality laws, that is Makeham. Makeham mortality law is an updated law of Gompertz's mortality law where the reason that makes Makeham different from Gompertz is the death calculation factor, because Gompertz only takes the cause of death from the age factor. Even though the death factor can also come from accidents, therefore, Makeham combined the two causes of death so that it is corresponded to the actual factors. The Makeham law will function to create the Makeham assumption mortality table with trials and errors method to construct Indonesia Mortality Table 2019 (TMI IV). This construction requires parameters that must be founded to determine the survival probability ( ) of the Makeham. After finding the , calculate the annual premium by dividing the net single premium by the life annuity. The joint-life endowment insurance premium calculation in this study uses 10-year protection with a 5.75% for interest rate and Rp1,000,000,000 for the benefit, and based on the research, the annual premium for this married couple is Rp78,016,785, where the premium calculated based on Makeham will get a higher premium than calculated based on TMI 2019, which gets an annual premium Rp77,410,954.</p>