Liability Insurance Research Articles

Insurance Services and Protection of Economic Resources of Production in Rwanda in Sonarwa

The focus of this study was to assess the contribution of insurance services in the protection of economic resources of production, taking SONARWA Insurance Company as a case study. The study used a descriptive method whereby both qualitative and quantitative data were sought. The target population consisted of managers in public companies, private companies, semi-public companies, NGOs as well as individual clients who are experienced and paid a considerable premium and also employees of Sonarwa General who are managers and employees working in different departments. The total population came to 104 insured clients including 25 staff respondents from Sonarwa General in Kigali City. Slovin’s formula was used to calculate the sample size of 62 respondents of whom questionnaires were distributed to them to receive their views. The researcher designed a special interview schedule with insured clients using random sampling as well as top managers using purposive sampling. The data analysis was done using tables generated from SPSS. It was found that there was the effectiveness of insurance services in protecting economic resources as 21.0% of respondents said that quick compensation is one of the elements that make the insurance services of Sonarwa General very effective because the insured restart quickly their activities and continue its course of productivity. On the impact of insurance services from SONARWA on the sustainability of economic resources of the production of insured, 33.9% said that insurance services protect economic resources through the insurance of goods and properties, 17.7% for liability insurance, and 21.0% for financial operations and bid bonds. On the development of various insurance products and provision of opportunities to secure different types and categories of assets of the insured, 26 (41.9%) of respondents agreed that SONARWA-developed services and products protect the resources of the insured to about a tune of 61% to 80% risk protection against internal and external threats to be able to protect the economic resources of production of its clients. In addition, 24.2% of respondents were contented with the way Sonarwa identified major risks that may affect the economic resources of the insured so that it could establish appropriate ways to properly protect the economic resources of the insured against probable risks. Keywords: Insurance services, SONARWA, Insurance Companies, Economic resources, Insured.

Covering The Costs of Treatment Expenses of Animals Injured as a Result of an Accıdent in Traffic Within The Scope of Compulsory Financial Liability Insurance of Highways Motor Vehicles

Trafik kazası sonrasında yaralanan hayvanların tedavi masraflarının hasara sebebiyet veren aracın Karayolları Motorlu Araçlar Zorunlu Mali Mesuliyet Sigortası kapsamında sigortacısı olan sigorta şirketleri tarafından karşılanıp karşılanmayacağı uygulamada belirsiz durumdadır. Yaralanan hayvanda meydana gelen zararlar bazı sigorta şirketlerince riziko kapsamında değerlendirilirken aksi düşüncede olan sigorta şirketleri de mevcuttur. Yine aynı hususta Sigorta Tahkim Komisyonu’nda birbiriyle çelişen hakem ve itiraz hakem heyeti kararları bulunmaktadır. Hayvan Koruma Kanunu net şekilde bütün hayvanların yaşama hakkına sahip olduğunu düzenlemiş olduğundan hayvanların hukuki statüsünü salt eşya olmaktan çıkarmış ve “kişi benzeri” veya “hak nesnesi” statüsüne yaklaştırmıştır. Söz konusu belirsizlik; Karayolları Trafik Kanunu ile Karayolları Motorlu Araçlar Zorunlu Mali Mesuliyet Sigortası Genel Şartları’nın zarar kapsamlarının farklı olmasından ve anılan Genel Şartların zarar kapsamını dayanak kanuna aykırı olarak daraltmasından kaynaklanmaktadır. Ayrıca haksız fiil hukukunun önemli kurucu unsurlarından olan “kusur” durumu da belirsizliğin yaşanmasında önemli bir sebeptir. Özelikle sahipsiz sokak hayvanlarına ilişkin olarak yaşanan kazalarda kusur yönünden bazı tartışmalar da bulunmaktadır. Bu çalışmada trafik kazası sonrasında yaralanan sokak hayvanlarının tedavi masraflarının Karayolları Motorlu Araçlar Zorunlu Mali Mesuliyet Sigortası kapsamında sigorta şirketleri tarafından karşılanıp karşılanamayacağı hususu, yargısal içtihatlara yön vermek gerekliliği noktasında doktriner olarak detaylı şekilde incelenmiştir.

Оптимизация ОСАГО в условиях общей цифровизации экономических субъектов

The scientific article is devoted to the modernization and optimization of the coefficients of the risk premium of compulsory civil liability insurance of vehicle owners, in the context of the general digitalization of economic entities and current geopolitical realities. The calculation of the total payment for CTP insurance is analyzed. It is concluded that key management decisions in achieving the main goal of profit maximization should be economically justified and have the possibility of timely transformation and adaptation to current realities. These provisions can increase the level of economic security and financial stability of the insurance company.

Legislative Update: Malaysian Space Board Act 2022: Its Major Legal Frameworks

Malaysian Space Board Act 2022 (Act 834) was gazetted on January 25, 2022. It is a new outer space legislation that was passed by the Malaysian Parliament. This Act is designed to regulate Malaysian outer space activities that are carried out nationally or internationally. This paper discusses the major legal frameworks of the Malaysian Space Board Act 2022. They are the establishment of the Malaysian Space Board, modes of authorisation of space activities, registration of space objects, liability and indemnification, prohibition of activities and offences, event of incident and accident, power of enforcement of public officers, and other relevant legal matters. The methodology used is by analysing the provisions stated in the Malaysian Space Board Act 2022, works of authoritative writers, and United Nations space conventions and treaties. The paper concludes that the Act is a good space legislation, however, certain matters need to be given consideration like the obligation of constant monitoring and supervision of space activities, and the liability insurance clause.

Natural disasters, stock price volatility in the property-liability insurance market and sustainability: An unexplored link

The close interrelationship between sustainability and natural disasters is both bidirectional and complex, holding paramount significance within the realm of the economics of natural disasters. The ravaging effects of natural disasters extend beyond the directly affected regions, influencing sustainability and impeding recovery efforts. The aftermaths are felt across economic sectors, making it imperative to examine the financial implications, particularly for the insurance sector, a pivotal player in disaster recovery. Despite the critical role of insurance (especially property coverage), the financial repercussions for insurance companies have not received sufficient attention in the literature. Notably, there are no studies on the evolution of their stock prices, especially their volatility, in the short and medium term. Therefore, this article respond to the call made by Eckhardt et al. [60] for studies that examine the consequences of natural disasters beyond the short term, and use econometric techniques to measure them. Moreover, it focuses on a type of consequence that remains largely unexplored in the literature: the volatility of property and liability (P&L) insurers, which is closely related to sustainability. Employing a multi-event framework, we estimate the GARCH-type model that best captures the volatility behavior of P&L insurance companies in the United States over the past decade, as well as the impact of natural disasters on that volatility, in both the short and the medium term, thus going beyond the immediate effects examined in most related studies. The conclusions are of major interest to policymakers and P&L insurers, providing the former with a series of instruments to control the volatility of the returns of P&L insurers, and stock markets over different timeframes, and providing the latter with the tools needed to better manage the volatility of their stock prices and their value-at-risk.

Medical error and complication. Gloss to the Judgment of the Court of Appeal in Szczecin of 11 May 2017, I ACa 560/15

This gloss discusses the issues related to complications and medical error, notably the distinction between the error covered by third party liability versus undesirable results of treatment, commonly referred to as a complication or a medical failure. In medical practice, the latter gives rise to a number of practical and legal questions, at the same time being of considerable importance for insurance undertakings offering third party liability insurance. Taking into account the facts of the case and deliberations of the Court of Appeal in Szczecin in its judgment of 11 May 2017 (I ACa 560/15), the author of this gloss indicates that in the event of an error, irrespective of its nature (diagnostic error, therapeutic error, prognosis error, executive error), the doctor may be held liable for negative consequences that occur to the patient (health disorder, bodily injury or even death). However, if a doctor proves that in the case concerned a complication has occurred and that the complication is prognosed by the current medical expertise, the following mechanism applies: if the patient concerned has been advised of the possible occurrence of the complication and has given his or her informed consent to the treatment, the doctor bears no liability for negative results thereof. The cause of liability in the above case would not be a medical error, but the failure to obtain the patient’s informed consent that he or she is aware of possible complications of certain type. A distinction needs also to be made between the occurrence of a complication, the failure to provide a correct diagnosis and/or the failure to take remedial action in respect of the patient who exhibits negative effects of the treatment applied.

The Impact of the Bankruptcy of the Insurer Operating in the EU under Freedom of Establishment Rules on the Performance of the Insurance Guarantee Fund in the Compulsory Motor Third-Party Liability Insurance System

Cross-border activities of European companies, including insurance undertakings, constitute the major component of EU legal system. The freedom of establishment and the freedom to provide services rules are the crucial foundations of the single internal market, as they enable EU entrepreneurs to take up and pursue economic activity in the territory of another Member State. Unfortunately, the EU market has its weaknesses, one of which has been recently experienced by the Polish insurance market. This is due to the lack of a uniform guarantee system which would coherently deal with the issues related to the European insurer’s insolvency and, above all, to the settlement of claims of entitled persons and to the payment or refund of benefits, which has particular consequences for entitled persons holding motor third-party liability insurance, being the most popular insurance product.Given the above, the performance of the Polish Insurance Guarantee Fund is of the utmost importance. The legislator has failed to precisely regulate several issues related to the organisational aspects of the institution’s activities of in the event of bankruptcy or compulsory liquidation of an insurance company operating in Poland on a cross-border basis. Therefore, some demands for amendments to the Compulsory Insurance Act have been presented. The most urgent demand, however, is about providing for unambiguous method for determining which Member State’s guarantee scheme should satisfy the claims of entitled persons, i.e. whether it should be the scheme of the insolvent or bankrupt insurer’s home Member State or rather the scheme of the Member State where it conducted its cross-border operations. Besides, the determination of the mode of reimbursement by the guarantee scheme of the insolvent or bankrupt insurer’s country of origin will increase the level of responsibility of supervisory institutions of that country for the operation of entities subject to their supervision and conducting cross-border business.

Safer not to know? Shaping liability law and policy to incentivize adoption of predictive AI technologies in the food system.

Governments, researchers, and developers emphasize creating "trustworthy AI," defined as AI that prevents bias, ensures data privacy, and generates reliable results that perform as expected. However, in some cases problems arise not when AI is not trustworthy, technologically, but when it is. This article focuses on such problems in the food system. AI technologies facilitate the generation of masses of data that may illuminate existing food-safety and employee-safety risks. These systems may collect incidental data that could be used, or may be designed specifically, to assess and manage risks. The predictions and knowledge generated by these data and technologies may increase company liability and expense, and discourage adoption of these predictive technologies. Such problems may extend beyond the food system to other industries. Based on interviews and literature, this article discusses vulnerabilities to liability and obstacles to technology adoption that arise, arguing that "trustworthy AI" cannot be achieved through technology alone, but requires social, cultural, political, as well as technical cooperation. Implications for law and further research are also discussed.

Media coverage and demand for directors’ and officers’ liability insurance—evidence from China

ABSTRACTPrevious research has documented the impact of internal governance risks and external litigation risks on the demand for D&O insurance. However, the role played by media coverage in this context remains unclear. This study examines the relationship between media coverage and D&O insurance demand using a sample of Chinese A-share listed companies from 2005 to 2019. Our research findings indicate that an increase in media coverage in the previous year significantly enhances the D&O insurance demand for companies in the current year. To mitigate potential selection bias and omitted variable issues, we employ propensity score matching and instrumental variable regression, and the conclusions remain robust. Mechanism analysis suggests that media coverage primarily affects D&O insurance demand through two channels: alleviating information asymmetry and reputation pressure. Further analysis reveals that in companies with more independent directors, greater institutional ownership, and in highly marketized, legally developed regions, the impact of media coverage on D&O insurance demand is more pronounced. However, the CEO’s political affiliation significantly diminishes this effect. This research contributes to a deeper understanding of D&O insurance demand in emerging markets and provides valuable insights for regulatory authorities in recognizing the role of media.

Insurance and the public–private management of risk at US commercial nuclear power plants

AbstractThis article examines the public–private partnership between the federal government, private insurers, and power companies that enabled the development of commercial nuclear power generation during the 1950s and its evolution to the present day. The public–private process of nuclear insurance development and its impact on nuclear safety is examined through the lens of the Price–Anderson Act enactment and subsequent renewals. The purpose is to show how commercial nuclear insurance evolved over time, and how the indemnification of potentially catastrophic losses influenced the safety behavior of operators, regulators, and other institutions. Evidence is presented demonstrating the relationship between nuclear insurance and safety, using insurance liability and property premiums, and key measures of nuclear safety.

OBJECT AND SUBJECTS OF PROFESSIONAL LIABILITY INSURANCE OF DOCTORS

This article discusses constitutional guarantees, the object and subjects of medical professional liability insurance. The issue of the rights and obligations of subjects of medical professional liability insurance is also analyzed through research by domestic and foreign scientists.

DOCTOR’S PROFESSIONAL LIABILITY INSURANCE IN CIVIL LEGAL ORDER

This article talks about the importance and relevance of civil regulation of doctor’s professional liability insurance today. The economic, social and legal consequences of the lack of regulation of these relations are analyzed on the basis of statistical data and foreign experience. The level of regulation of medical professional liability insurance in the Republic of Uzbekistan and the analysis of regulatory legal documents are discussed.

FEATURES OF COMPULSORY PROFESSIONAL LIABILITY INSURANCE AND ITS ROLE IN INSURANCE RELATIONS

This article analyzes the features of compulsory professional liability insurance. The role of compulsory professional liability insurance in insurance relations is revealed.

Analysis of the level of penetration and protection of car owners by the compulsory motor third party liability insurance system in the Russian Federation

Subject. The article considers the effectiveness of existing measures of government control over road traffic safety. Objectives. The focus is on assessing the level of protection of car owners by the compulsory civil liability insurance (OSAGO) for the period from 2014 to 2021. Methods. The study rests on methods of correlation and regression analysis. Results. The analysis of statistical data and law enforcement practice demonstrated that an increase in the number of administrative charges entails a decrease in the number of those who comply with the requirements of Federal Laws "On Road Safety" and "On Compulsory Insurance of Civil Liability of Vehicle Owners". The rise in inflation and the average size of insurance premiums and insurance payments have no impact on the number of contracts for compulsory motor third-party liability insurance (OSAGO) concluded in Russia. Conclusions. The existing measures of State regulation in the field of compulsory civil liability insurance are not effective enough. The established administrative sanctions for violation of requirements of compulsory civil liability insurance by car owners negatively affect the penetration of the institution of OSAGO and lead to a decrease in the overall protection of car owners and other road users by the mandatory liability insurance system.

Optimal cashback in a cooperative framework for peer-to-peer insurance coverages

AbstractThe challenges of using technology in the insurance field are opening new horizons for developing and distributing innovative products. Among these, peer-to-peer insurance schemes attract the interest of policyholders and insurance companies. Different types of peer-to-peer insurance have been introduced, from pure models to hybrid ones, as in the case of the broker model. In this paper, we focus on the broker model, where the groups of peers are formed by an insurance broker according to similar risk characteristics. The participants in the network pay an initial contribution defined by a cooperative rule that must be transparent and shared. A part or the whole of the collected contributions is set aside in a common fund. At the end of the year, if the common fund is sufficient to pay for the claims, the members obtain the excess over-retained premiums that is shared according to a capital allocation rule. We propose a cashback distribution mechanism based on the participant’s marginal contribution to the risk, framing the issue in a cooperative game and applying the concept of Shapley value to define an optimal allocation rule of the remaining capital. A numerical application based on a portfolio of motor third-party liability policies is developed to show how the model works.

Pertanggungjawaban Hukum terhadap Kecelakaan Kapal dalam Perspektif Teori Hukum

The purpose of this study is to analyze and describe the responsibility of insurance parties for ship accidents at sea that provide legal certainty and justice; and to analyze and describe the legal protection and legal certainty provided by the insurance against ships2 that have accidents at sea. The type of research used is normative juridical Doctrinal legal research which is conceptualized as statutory rules, and doctrinal legal research which is conceptualized based on judges' decisions. Because normative legal research examines literature and library materials, there are also those who classify normative legal research as literature research. Insurance liability for ship accidents at sea is very important to provide legal certainty and justice for all parties involved. This requires legal certainty so that all parties know their respective rights and obligations, and justice to ensure that all parties get fair treatment according to the losses they have suffered. To protect the rights and interests of each party, the insurance provides legal protection and legal certainty for ships that have accidents at sea. With legal protection and certainty, the problems of the parties involved in ship accidents will be easier to resolve fairly

Environmental pollution liability insurance pilot policy and enterprise green transformation: evidence from Chinese listed corporates

In the context of dual-carbon, corporate green transformation, a significant measure of the green effect of Environmental Pollution Liability Insurance (EPLI), garners substantial attention in current research. By leveraging the 2008 EPLI pilot policy as an exogenous event, this paper employs a difference-in-difference model to scrutinize the influence of the EPLI pilot on the green transformation of listed companies. We find that: (1) The EPLI pilot actively promotes corporate green transformation. (2) The pilot policy’s impact on green transformation is mediated through regional green development and enterprise investment efficiency. (3) The pilot policy manifests asymmetric effects on green transformation, influenced by regional, industrial, and enterprise-specific pollution levels, as well as government environmental concerns. (4) The EPLI pilot policy engenders enduring financial implications and contributes to the governance of information. This study is beneficial to enrich the research on the EPLI system and green transformation of enterprises that provide policy suggestions for improving the green financial system and promoting the green transformation of enterprises.

Pemodelan Besar Klaim Asuransi untuk Jaminan Third Party Liability Menggunakan Distribusi Campuran Rayleigh-Rayleigh

This paper will discuss the modeling claim severity of ThirdParty Liability insurance using a mixed Rayleigh-Rayleigh distribution. The mixed Rayleigh-Rayleigh distribution is a distribution built on the basis of an infinitely mixed distribution. The mixed Rayleigh-Rayleigh distribution is a continuous distribution with one parameter, namely α. Parameters in the mixed Rayleigh-Rayleigh distribution can be estimated using the maximum likelihood estimator method through the Newton-Raphson iteration numerical method. The distribution fit test was carried out using the Kolmogorov-Smirnov fit test. The data used is data on Third Party Liability insurance claims with comprehensive coverage at PT. X for the 2019 policy for category 2 in all regions. Based on the results of applying the mixed Rayleigh-Rayleigh distribution on the data claim severity of Third Party Liability insurance with comprehensive coverage at PT. X in 2019 category 2 using the Kolmogorov-Smirnov test it can be concluded that the claims severity in regions 1 and 3 come from populations with a mixed Rayleigh-Rayleigh distribution, while the claim severity claims in region 2 come from populations that don't have a mixed Rayleigh-Rayleigh distribution.
 

Does environmental pollution liability insurance affect corporate green innovation? New evidence from China

The effect of the development of green finance (GF) on the green transformation of corporations has been a key research issue in recent years. This study is based on a list of companies insured under the environmental pollution liability insurance (EPI) announced by the Ministry of Ecology and Environment (formerly the Ministry of Environmental Protection) in 2014 and 2015. Considering A-share listed companies in China as research samples and using the DID model, we investigate the impact of EPI on corporate green innovation (CGI). The results show that EPL can significantly promote the green innovation level of insured corporations, mainly reflected in two aspects of green invention patents and green utility model patents; this positive effect is more obvious in non-state-owned, heavily polluting, and patent-intensive corporations. These results hold after the robustness test. The mechanism analysis reveals that EPL promotes corporate green innovation by alleviating corporate financing constraints. This study provides new evidence for the role of GF in promoting green innovation and transformation in China.

An investigation of the Volatility Adjustment

AbstractWe use market data to reconstruct the volatility adjustment, a component of the Solvency II framework designed to mitigate the impact of market risk on insurance liabilities, of different countries on a monthly basis. Only partially in agreement with the regulation, we observe that the volatility adjustment, especially the proposed new mechanism, is not affected by credit quality, illiquidity of bonds, and investors’ risk appetite, but by turbulence in financial markets and equity market performance. We also show that the new mechanism proposed by EIOPA performs differently with respect to the one in force at the time of writing the current paper, yielding higher and smoother values and providing a relief to insurance companies on the Solvency II capital requirement front.