Insurance Market Research Articles

Insurance market development and economic growth in Africa: Contingencies and thresholds of structural transformation

Despite insurance contributions to economic growth, the intervening role of structural transformation on the insurance-growth nexus remains scarce, leaving a gap in the literature. Motivated by the 2030 Sustainable Development Agenda, which envisages higher structural transformation, financial development and economic progress, this study examines the threshold effects and the joint impact of insurance and structural transformation on economic growth in Africa. The study employed the generalised method of moments and dynamic panel threshold estimations on 38 countries covering 2008 to 2020. The following findings emerge: First, insurance and structural transformation promote economic growth. Second, the results indicate that structural transformation enhances the impact of insurance on economic growth. This suggests that structural transformation matters in driving insurance market development, ultimately promoting economic growth. Third, the empirical evidence further reveals nonlinearities in the relationship and presents that a high level of insurance penetration stimulates growth and vice versa. More so, the synergistic effect of insurance and structural transformation on economic growth is more substantial at higher threshold levels. This implies that though insurance spurs economic growth, its impact is more effective through the intervening role of a strong structural transformation. Therefore, this study calls for government intervention and policies to improve structural transformations and form insurance synergies to promote growth.

One size does not fit all: The value of information and coexistence of rating agencies

AbstractThis study investigates the production of information by multiple rating agencies and the selection of rating agencies when the value of information to buyers is heterogeneous. We argue that firms strategically choose a rating agency based on the value of information. Not only can a rating agency with a finer rating scheme than a dominant agency offer information to the market, but an agency with a coarser scheme can also provide information by serving low‐information‐value users and sellers who could not obtain a rating otherwise. This does not necessarily result in rating shopping. We tested these hypotheses using the U.S. property‐casualty insurance market, examining insurers' rating agency selections among AM Best, Demotech, and S&P. Our results indicate that the value of information to users influences both the design of rating schemes by rating agencies and the selection of rating agencies by firms. The coexistence of multiple rating agencies with different rating schemes suggests their ability to serve heterogeneous information clienteles.

STATE REGULATION OF REINSURANCE ACTIVITIES IN UKRAINE DURING THE WAR

This paper examines the evolution of state regulation of reinsurance activities in Ukraine in the period 2022-2024, with a particular focus on the impact of the ongoing conflict with Russia. This paper examines the manner in which the regulatory framework has been adapted to the distinctive challenges posed by the war in order to stabilise the insurance market and ensure effective risk management. The objective of this study is to analyse the regulatory measures and their implications for the insurance and reinsurance sectors, with a particular focus on the changes implemented, their practical results and the broader implications for market stability. The primary objective of this paper is to undertake a comprehensive analysis and evaluation of the alterations in state-level regulation of reinsurance in Ukraine between the years 2022 and 2024. The objective is to identify the regulatory changes implemented to address the distinctive challenges posed by wartime conditions, evaluate their impact on the reinsurance industry, and discuss the broader economic implications. The study aims to provide a comprehensive understanding of the manner in which the regulatory framework has been adjusted in order to maintain industry stability and ensure effective risk management in an unstable environment. Methodology. This study employs a qualitative research methodology, utilising a combination of document analysis and expert interviews. The data was gathered from regulatory reports, policy documents, and statements issued by the National Bank of Ukraine and other pertinent authorities. The analysis is centred on a detailed examination of the key regulatory adjustments, the market responses to these changes, and the practical implications of these modifications. Results. The analysis revealed several significant changes in the reinsurance regulation in Ukraine during the reporting period: 1) strengthening of regulatory supervision; 2) revision of coverage requirements; 3) state and international financial support measures and co-operation with international reinsurers to stabilise the market and manage increased risks. The regulatory changes have had several practical implications for the reinsurance sector: increased financial stability through stronger solvency and capital requirements has improved the financial strength of insurers and reinsurers, helping them to manage the increased risks associated with the conflict. Value / Originality. This paper presents a comprehensive analysis of the regulatory adaptations in Ukraine's reinsurance sector during a period of significant political and economic upheaval. The paper offers valuable insights into the effective adjustment of state regulation in response to extraordinary circumstances, thereby contributing to the broader understanding of risk management in conflict-affected regions. The study is of particular relevance in the context of the prevailing geopolitical circumstances and the necessity to comprehend the manner in which extreme circumstances affect financial regulations. The study addresses a gap in the existing literature on crisis management in the financial sector, with a particular focus on the context of war. The originality of this study lies in its focus on the intersection of war and regulatory adaptation, a topic that has been largely overlooked in the existing literature. By analysing the regulatory responses and their outcomes, the paper makes a contribution to the development of strategies for effective crisis management in the financial and insurance sectors.

Analisis Implementasi Strategi Pemasaran Asuransi Pendidikan Mitra Iqra Plus Dalam Kajian Asuransi Syariah

Atika Andriani1, Sri Ramadhani, Rahmat Daim Harahap2 1 FEBI UIN Sumatera Utara, Indonesia atikaandriani98@gmail.com1, Sriramadhani@gmail.com2, rdainharahap@uinsu.ac.id3 ABSTRACT Mitra Iqra Plus is one of the products owned by PT. Bumiputera Sharia Life Insurance, KPS Medan, which aims to help fund children's education. The purpose of this study was to determine the implementation of Mitra Iqra Plus' educational insurance marketing strategy in the study of sharia insurance at PT Asuransi Jiwa Syariah Bumiputera, KPS Medan, the application of sharia principles in the implementation of marketing life insurance products at PT Asuransi Jiwa Syariah Bumiputera, KPS Medan, and challenges in implementing sharia. marketing conducted by PT Asuransi Jiwa Syariah Bumiputera, KPS Medan. This type of research uses qualitative research. Data collection techniques in the form of interviews, observations, and documentation. The data analysis technique used is to reduce the data, present the data, then draw conclusions. The results show that PT Asuransi Jiwa Syariah Bumiputera, KPS Medan implements according to sharia marketing principles starting from Wisdom (Strategy), Needs (Needs), Halal (Tayyibat), Welfare (Falah), Mutual Consent. The inhibiting factors in implementing the Mitra Iqra Plus educational insurance marketing strategy are the lack of public knowledge about sharia insurance, lack of public trust in sharia insurance, lack of agents and customers who are difficult to collect for premium payments. The challenge is the lack of technology development, the weak market share of PT. AJS Bumiputera due to lack of support from the government and the community. Keywords: Implementation of Sharia Marketing Strategy, Mitra Iqra Plus, Sharia Insurance.

Labor market participation in people with intellectual disability – a follow-up study in Sweden

Abstract Background Work is vital to people’s health and quality of life. The Convention on the Rights of Persons with Disabilities affirms the right to work on an equal basis with others including an opportunity to earn a living by work, but evidence shows that people with intellectual disability (ID) are at greater risk of unemployment and social exclusion. Due to the lack of comprehensive data for longitudinal follow-ups, information on long-term labor market participation (LLMP) in people with ID is scarce. This study aimed to investigate factors of importance for LLMP in individuals with ID in Sweden. Methods The study was based on data from the upper secondary school for pupils with ID between 2001 and 2020 (N = 26,905) and from the longitudinal integrated database for health insurance and labor market studies. A sample of gainfully employed in 2011 (n = 2,719), was followed with respect to LLMP until 2020. Odds ratios (ORs) with 95% confidence intervals (CI) for associations between educational, sociodemographic, and work factors and LLMP (i.e. gainful employment throughout the follow-up), were estimated stratified on sex. Results LLMP was twice as likely in men compared with women, OR 2.06 (1.78-2.58) as was work in the private sector. Factors of significance for LLMP in men and women alike were: completed national education program, OR 3.40 (3.06-3.86) and OR 2.91 (2.40-3.54), parents’ education; compulsory school in mothers’, OR 1.22 (1.06-1.41) and 1.24 (1.00-1.55) and in fathers’ OR 1.35 (1.17-1.56) and 1.49 (1.20-1.85), while municipality of residence was significant only in men, OR 1.30 (1.10-1.56). Conclusions Public health prevention for disadvantaged groups requires accurate and up-to-date knowledge. Using unique register-based data, this is the first study on LLMP in people with ID in Sweden. Knowledge on what social determinants may strengthen LLMP is important since limited LLMP increases the risk of missing out on health benefits that employment may offer. Key messages • There was a significant gender difference in long-term labor market participation in people with intellectual disability in Sweden. • There is a need for increased knowledge on what social determinants may strengthen long-term labor market participation in people with intellectual disability.

Insurance Markets Risk Affects Global Reinsurance Market Risk? Evidence from USA and Europe Insurance Markets

Insurance Markets Risk Affects Global Reinsurance Market Risk? Evidence from USA and Europe Insurance Markets

The Construction of Investment Portfolios under the Minimization of VarianceTaking the Hong Kong Insurance Market as an Example

Abstract: In the context of a decline in the Hang Sheng Index, this paper intended to study the different effect between using Markowitz Model and Index Model to invest insurance industrys stock in Hongkong, especially for those who are risk-averse. A recent ten years of adj close for 9 typical insurance stocks from Hongkong as well as the Heng sheng index has been chosen as the target data. The result illustrates that there is no significant difference between these two models. This study intends to give some reference for those who focus on Hong Kong insurance industrys investment and hate taking risk. This study find that the constraints minimal variance is the smallest at 16.832(The index model of constraint 2) and the constraints highest sharp ratio is around 0.26(The index model of constraint 4). The findings of this paper provide the investors empirical evidence on how to construct optimal investment portfolio in Hong Kong insurance market.

On-demand insurance: idea, development, impact on market equilibrium

The article presents the definition, idea, development, and current state of a new business model known as on-demand insurance which has been in existence since the early 21st century. Moreover, the article does not only describe the premises behind the development of this new method of creating value for clients of insurance companies and the opportunities that appear in the market but also addresses the challenges that insurance providers can encounter. Based on the analysis and available source materials, the most interesting types of these insurance products and the entities that include such products in the portfolios were presented. In addition, some new regulatory challenges and trends were described. The purpose of this study is to analyse the behaviour of the insurance market after the introduction of on-demand products in light of the classical definition of equilibrium in a competitive insurance market under conditions of information asymmetry. The authors analysed the economic implications of implementing on-demand insurance, demonstrating its potential to enhance the overall welfare of the insured population by increasing utility for certain risk groups of clients.

BUSINESS PERFORMANCE AND FORECAST OF BUSINESS PERFORMANCE OF INSURANCE ENTERPRISES IN VIETNAM

The Vietnamese insurance market currently has many potential advantages: insurance products are enhanced in both quantity and quality, increasingly meeting the diverse needs of customers, and many new types of products, but there are still many challenges, such as human resource quality, market database, and application of information technology. The article has studied the business performance of insurance companies from 2013 to 2023 and used the ARIMA model to forecast the business performance of insurance companies. The forecast results are consistent with the insurance market development strategy until 2030. The article has proposed a number of recommendations to management agencies and solutions for insurance companies to achieve the scale, growth rate, and business efficiency as set out in the strategy.

Insurance secrecy

This article discusses the issues related to insurance secrecy, which is an important matter from the perspective of insurance practice. The insurance is based on clients’ confidence in the payment of benefits if an event covered by the insurance has occurred as well as on the assumption that crucial data concerning major facts of the client’s life provided in the course of concluding the insurance contract (specifically in the medical survey concerning the insured’s health condition) and while the insurance relationship persists will be disclosed to nobody in an unauthorised manner. Insurance secrecy is a professional secrecy regulated by the Act of 11 September 2015 on Insurance and Reinsurance Activity in order to ensure the confidentiality of data transmitted and to maintain clients’ confidence in insurance companies. Insurance secrecy is related to the protection standard of the right to privacy, with this right constituting one of the major values.This article deals with the temporal, territorial, material and subjective scope of applying the insurance secrecy, principles of liability for the breach thereof, as well as the admissibility of consent to release the information covered by the secrecy, by citing different voices concerning those issues. In addition, the author presents judgments relating to a number of aspects concerning the practical application of provisions concerning the insurance secrecy and highlighting the basic characteristic of the institution in question. Some practical aspects related to the application of the insurance secrecy are also addressed, taking into account the current realities of the insurance market, including technical solutions (e.g. social media), by means of which beneficiaries of insurance contracts or the insured themselves inform the public about the liquidation procedure, which puts the insurance companies, or more broadly the insurance distributors, in a more difficult position in terms of their image. Finally, some de lege ferenda proposals are put forward in respect of those aspects of insurance secrecy, which, in the authors’ opinion, need to be dealt with by the legislator.

Selection of Health Insurance Policy: Using Analytic Hierarchy Process and Combined Compromised Solution Approach Under Spherical Fuzzy Environment

The process of health insurance policy selection is a critical decision with far–reaching financial implications. The complexity of health insurance policy selection necessitates a structured approach to facilitate informed decision-making amidst numerous criteria and provider options. This study addresses the health insurance policy selection problem by employing a comprehensive methodology integrating Spherical Fuzzy Analytic Hierarchy Process (SF–AHP) and Combined Compromise Solution (CoCoSo) Algorithm. Eight experienced experts, four from academia and industry each, were engaged, and eleven critical factors were identified through literature review, survey, and expert opinions. SF–AHP was utilized to assign weights to these factors, with Claim settlement ratio (C9) deemed the most significant. Subsequently, CoCoSo Algorithm facilitated the ranking of insurance service providers, with alternative A6 emerging as the superior choice. The research undertakes sensitivity analysis, confirming the stability of the model across various scenarios. Notably, alternative A6 consistently demonstrates superior performance, reaffirming the reliability of the decision-making process. The study’s conclusion emphasizes the efficacy of the joint SF–AHP and CoCoSo approach in facilitating informed health insurance policy selection, considering multiple criteria and their interdependencies. Practical implications of the research extend to individuals, insurance companies, and policymakers. Individuals benefit from making more informed choices aligned with their healthcare needs and financial constraints. Insurance companies can tailor policies to customer preferences, enhancing competitiveness and customer satisfaction. Policymakers gain insights to inform regulatory decisions, promoting fair practices and consumer protection in the insurance market. This study underscores the significance of a structured approach in navigating the intricate health insurance landscape, offering practical insights for stakeholders and laying a foundation for future research advancements.

ПРОБЛЕМИ ТА ПЕРСПЕКТИВИ СТРАХУВАННЯ ТУРИСТИЧНОЇ ДІЯЛЬНОСТІ

The article discusses the types of insurance in tourism. Based on the analysis of the insurance market of Ukraine, it was established that the number of insurance companies decreased by almost three times during the years 2015-2022, and 25 insurance companies worked in the field of tourism in 2023. It was revealed that the following companies are the leaders in the travel insurance market: European Travel Insurance, ARX, VUSO, PZU Ukraine. The factors that hold back the development of tourism insurance are highlighted: military actions due to Russia's invasion of Ukraine, political instability; decrease in the number of tourists, low solvency of the population; imperfect legal framework; poor awareness of the population in the field of tourism insurance; public distrust of insurance companies; a narrow range of insurance services in the field of tourism insurance; incomplete and untimely fulfillment of obligations to policyholders; limited scope of insurance protection due to reduction of insurance prices by insurers; decrease in the quality of insurance products; insufficient professional level of insurance company specialists; overall low development of the country's insurance market. The main trends in the field of insurance in Ukraine are revealed: individual policies for certain tourist segments, use of artificial intelligence, transformation of products into the format of electronic policies, blockchain technologies. Directions for solving problems in the field of insurance in tourism are indicated: improvement of the regulatory and legal framework; ensuring political stability, increasing economic development in the state; training of highly qualified personnel in the field of insurance; improvement of insurance culture; creation of protective mechanisms for tourists; assistance from the state to the development of the insurance market in Ukraine; improvement of the risk management mechanism; increasing public trust in insurance companies; expanding the list of insurance services and improving their quality.

Insurance protection of business in the context of digitalization: the balance of private and public interests

The article discusses current issues of business insurance protection in the context of digitalization. New proposals of insurance market entities have been studied in detail — remote sale of insurance products both on their own online resource (usually the website of an insurance organization) and on specialized financial platforms, resolution of insurance cases through telecommunications innovations, settlement of pre-trial disputes via the Internet. The authors analyze the advantages and disadvantages of various types of insurance services for entrepreneurs, as well as measures taken by the state to stimulate the development of the insurance market and the desire of entrepreneurs to use insurance protection on a voluntary basis.

Analyzing the New Institute Cargo Insurance Clauses of 2009 and its Harmonization with the Arabic Marine Insurance Legislations

The aim of this paper is to discuss in details the new changes in the marine cargo insurance in particular and the new editions of the Institute Cargo Clauses of 2009 known as (l.C.C clauses) in comparison with the old editions of the 1982 clauses. The old clauses at that time were a radical change in the world of marine cargo insurance. The paper examines briefly the reasons behind the change that occurred in 1982 to better understand the recent changes of 2009. The paper also investigates the aims behind the 2009 changes carried out by the Institute of London Underwriters. This paper will also discuss whether the new changes came in favor of the insurers or the insureds. The method adopted by the researcher to tackle with the subject is the analytical and comparison study. The paper considers this matter and the effect of the clauses and harmonization of their wordings compression with the provisions of the English marine insurance ACT of 1906 and the Jordanian Maritime Commercial Law of 1972, which is very similar to other Arab concerned legislations. Finally, the paper will evaluate arrived at the following conclusions; 1- the changes in the marine insurance clauses designed to keep up with the new developments in the international trade and politics. 2- The intention of the draftsman was to create self-standing clauses, stating clearly the terms of the marine insurance contract. A new balance between the insurers and the insured has been achieved, and in general the changes was in favor of the assureds. 4- the new versions of the I.C.Clauses may applied in the Arab marine insurance market without any contradiction the Arab marine insurance legislations.

A Study of Hong Kong's Insurance Industry Based on the New Development Pattern Model

Against the backdrop of global economic changes and China's economic restructuring, the potential of Hong Kong's insurance industry as an investment channel is gaining increasing attention. This thesis aims to explore the opportunities and challenges of Hong Kong's insurance industry under the new development pattern. Through a combination of quantitative and qualitative analyses, it examines the historical data and future trends of Hong Kong's insurance market and conducts a study based on first-hand information obtained through data surveys and expert interviews, exploring the specific impacts of the new development pattern on the insurance industry, and incorporating the development of the Greater Bay Area into the research framework. Hong Kong's insurance industry harbours a wealth of investment opportunities in terms of expanding market size, product diversification, and policy support, but it also faces challenges such as intensifying market competition and international uncertainty. The study recommends that investors should focus on long-term trends to optimise their investment strategies and address market risks.

Развитие общего финансового рынка ЕАЭС: правовые аспекты

In the article, it was considered the areas of the development of the common financial market in the EAEU: expanding the list of countries participating in the forming of the com-mon financial market; deepening integration in those sectors and areas in which it is already taking place; inclusion of new sectors in the process of forming the common financial market. It is justified that the market of the digital currencies and financial assets will be a new sector of the common financial market in the EAEU in the future (along with banking, insurance and securities market).

Determining the leaders of Ukraine’s insurance market based on the adaptation of the DEA method

The escalating wartime risks in Ukraine has led to a rapid reduction in insurance coverage in life and non-life segments. The purpose of the study is to rank Ukraine’s insurance companies based on an adaptation of the DEA method to the insurance market conditions. The study utilized the Supervisory Statistics of the National Bank of Ukraine as data. The study also used ranking of insurance companies based on technical efficiency criteria. The output indicators include the profitability of total capital (Output1) and the occupied share of the insurance market (Output2). The input indicators comprise the volume of total assets of insurers (Input1), the share of equity capital in assets (Input2), the level of gross payments (Input3), and the level of payments to insurance reserves (Input4). The ranking of insurance companies is based on minimizing the distance of each from the bounds of technical efficiency by solving a set of optimization problems. Based on the modeling results, a list of market leaders (7 companies) was formed for the end of the third quarter of 2023. They served nearly 37% of the insurance market in Ukraine, accumulating 41.5% of the total assets of this financial market sector. So, the primary issue for insurance companies is the loss of solvency due to the absence of adequate levels of insurance reserves. Therefore, priority measures should include strengthening regulatory constraints in this financial market segment to facilitate its qualitative renewal.

Ethical Benefits and Challenges in Insurance: Framework of Introducing Pillar IV Regulation to Solvency II

The paper delves into the concept of Pillar IV, which addresses the recovery, resolution, and orderly exit from the insurance market within the framework of Solvency II - an essential tool for insurers' supervision. While Solvency II has undoubtedly reduced the risk of insolvency for insurers, it hasn't eliminated it. Therefore, this research aims to conduct a comparative analysis of various market models and proposals from authorities to come up with the best possible solutions for recovery stages, mechanisms to be implemented in the case of economic non-viability of the insurer, and resolution mechanisms to ensure a seamless exit from insolvency. The article evaluates different resolution methods, weighing their benefits and challenges, considering the interests of consumers, and the roles of regulatory and resolution authorities. The authors suggest a set of best practices, solutions, and guidelines to implement a resolution through regulations, which can be used to establish Pillar IV and enhance the level of preparedness of insurers. The goal is to avoid the adverse systemic effects of a traditional bankruptcy, which could significantly impact consumers, the economy, and public funds. Keywords: Solvency II; Resolution; Insurance; Recovery; Bail-in

Adverse pregnancy outcomes attributable to overweight and obesity across maternal birth regions: a Swedish population-based cohort study

Whether there are differences in the contribution of overweight and obesity to adverse pregnancy outcomes between migrant and non-migrant women in high-income countries, which might increase health inequalities, remains unclear. Therefore, in this study, we aimed to estimate the contribution (including the proportion and number of attributable cases) of overweight and obesity to a wide range of adverse pregnancy outcomes in Swedish-born and migrant women. This population-based cohort study used nationwide population registries in Sweden. All outcomes and covariates were collected from the Medical Birth Register (delivery and maternal characteristics), National Patient Register (inpatient and specialised outpatient care), the Cause of Death Register (all deaths in Sweden), the Longitudinal Integrated Database for Health Insurance and Labour Market Studies (socioeconomic data), and the Total Population Register (maternal birth country data). Women with missing records of BMI at the first antenatal visit, country of birth, or covariates, were excluded from the study. BMI was measured during the first antenatal visit. Maternal country of birth was categorised into Sweden and seven super-regions. The proportion (ie, population attributable fractions [PAFs]) and the number of adverse pregnancy outcomes attributable to overweight and obesity were calculated, adjusting for maternal age, gestational age at first antenatal visit, maternal parity, smoking status, maternal somatic conditions, child's sex, socioeconomic and demographic variables. We identified 2 228 416 singleton pregnancies between Jan 1, 2000, and Dec 31, 2020 of 1 245 273 women. 254 778 (11·4%) pregnancies with missing records of BMI at the first antenatal visit, country of birth, or covariates were excluded, which resulted in a final analytical cohort of 1 973 638 pregnancies carried by 1 164 783 women. The overall mean maternal age of the study population was 30·8 years (SD 5·1). As estimated by PAFs, overweight and obesity contributed to a large proportion of adverse pregnancy outcomes: gestational diabetes (52·1% [95% CI 51·0-53·2]), large-for-gestational age (36·9% [36·2-37·6]), pre-eclampsia (26·5% [25·7-27·3]), low Apgar score (14·7% [13·5-15·9]), infant mortality (12·7% [9·8-15·7]), severe maternal morbidity (henceforth referred to as a near-miss event; 8·5% [6·0-11·0]), and preterm birth (5·0% [4·4-5·7]) in the total study population. PAFs varied between maternal birth regions. Interventions to reduce overweight and obesity have the potential to mitigate the burden of adverse pregnancy outcomes and possibly reduce inequalities in reproductive health. Therefore, public health practice and policy should prioritise efforts to prevent overweight and obesity among women of childbearing age. Swedish Research Council.

INSURANCE MARKET DEVELOPMENT INDICATORS

This article provides information on the development indicators of the insurance market in our country and several tasks for the development of the insurance market are considered.