Development Of Life Insurance Market Research Articles

Life Insurance Market Development Prospects in Georgia

Reforms and changes carried out in all spheres of coexistence are aimed at ensuring the development of the state's free economic market. The establishment of free market relations made business a natural component of the Georgian economy. On the way to building the country as a legal state, an important role is played by the protection of property and non-property interests and the creation of its guarantees of compliance with international standards. All this is directly related to the development of the country's insurance market. Keywords: insurance market, non-property interest, object of insurance, life insurance.

Information and Communication Technology Adoption and Life Insurance Market Development: Evidence from Sub-Saharan Africa

As part of the Fourth Industrial Revolution (4IR), blockchain, fintech (financial technology), and insurtech (insurance technology) are some innovations that have been rolled out in the financial landscape and have captured the imaginations of policymakers and scholars alike. The African continent lags in embracing technology and is still grappling with financial access and enhancing financial inclusion. As such, it is bewildering whether African insurance markets are at a stage where they can leverage the possibilities offered by the 4IR. Against this backdrop, the aim of the study was to investigate whether information communication technology (ICT) adoption influences the development of African life insurance markets. We utilised a sample of 31 sub-Saharan African countries for the period 2005–2020. Panel data techniques were employed, and the pooled ordinary least squares, fixed effects, and random effect estimators were used to test the relationship between life insurance density and the measures for ICT adoption (proxied by fixed telephones, internet use, mobile cellular telephones, and broadband) as well as financial freedom being the control variable. We found that the life insurance market development variable was positively related to three of the four ICT adoption variables, namely, fixed telephone, mobile cellular telephone, and broadband. Further, the life insurance market development variable is positively related to the financial freedom variable. These findings suggest that ICT adoption fosters the development of the life insurance market in Africa. The findings also lend credence to the view that the degrees of financial freedom of insurance companies (who are unencumbered by regulations) have a bearing on the levels of insurance sales and, hence, promote life insurance access in Africa. The policy imperatives that flow from this study are that African governments must ensure that they (1) institute ICT adoption-friendly policies and (2) regulate the life insurance sector optimally, in order to foster the development of their life insurance sectors.

Impact of interest rates on the life insurance market development: Cross-country evidence

Studies have found that interest rates create incentives for insurance firms to focus on financial markets through investments. Using a cross-country context, we conjecture that interest rates affect the life insurance market’s development. Using an initial sample comprising the time series of interest rates and insurance markets’ measures from 34 countries across 1998–2017, we found that the density and penetration of the life insurance market is low in countries with high interest rates. Using another sample of 6,451 observations from insurance firms operating in the same 34 countries, we verified that the financial and operational incomes are equally significant in predicting the net income for life insurance companies that operate in countries with high interest rates. Our study contributes to observations that the lack of governmental control over public expenses impacts interest rates and, thereby, the opportunities for insurers.

Development of life insurance market in Ukraine

Purpose. The aim of the article is to study the main problems faced by the domestic life insurance market, substantiation of the negative impact and identification of opportunities for its future development. Methodology of research. The research is based on scientific and practical developments of scientists and specialists. The following methods are used to achieve this purpose, among them are analytical (when analyzing the main components of the life insurance market); generalization (when compiling data on the assessment of the life insurance services segment functioning in order to identify patterns of its trends); evaluation and inference (to summarize the subject of the research). Findings. Insurers’ dynamics in the domestic insurance market in recent years in terms of their numbers have been analyzed; an assessment of the structure in terms of gross and net insurance premiums and payments has been substantiated. The comparative characteristics of digital indicators of the Ukrainian and European life insurance markets have been considered. The issue of inclusion of insurance services in social programs and urgent deterrents of its solution in Ukraine has been studied. The advantages and disadvantages of life insurance areas (the accumulative pension, the insurance against accidents at work) have been analyzed. An assessment of the composition of the social package in the Ukrainian insurance market and the importance of each component, namely the basic social guarantees and additional material benefits, taking into account the available potential has been done. Originality. Theoretical and practical foundations of life insurance market development have been deepened on the basis of cooperation between the state, which at the same time assumes responsibility for maintaining the minimum income of all citizens, and also maximally stimulates the development of various forms of non-state insurance in order to save life, health and income. Practical value. The results of the research can be the basis for future scientific exploration in the field of effective development and functioning of the life insurance market. Key words: insurance, life insurance, accumulative pension insurance, insurance of working accidents, life insurance market.

Current issues of the performance of Ukraine’s financial services market

Introduction. It is emphasized that the sustainable development of national economy is possible as long as the financial services market functions effectively. The market is formed by the entities providing insurance, banking and investment services.Purpose. The purpose of the article is to identify the current challenges which hinder the development of Ukraine’s financial services market.Methods. The methodological framework of the study includes the following general research methods: induction, analysis, and generalization.Results. The main indicators reflecting the performance of the domestic insurance services market are analysed. Based on gross insurance premiums and insurance payments, it is found out that the most common type of insurance is vehicle insurance. The research paper claims that nowadays various types of insurance are being developed progressively in Ukraine. Special attention is paid to life insurance, because this type of insurance is viewed as socially essential. However, the development of life insurance market in Ukraine is rated as low.The presence of domestic banks on the financial services market is determined through the following indicators: the amount of funds received by business entities and individuals; the amount of gross loans granted to them. Under the current conditions, the domestic banks are providing financial services with innovative solutions.The main performance indicators of the domestic market of investment services with the participation of joint investment institutions are analysed. The development of this segment of the investment services market is evidenced by the increasing volume of assets owned by investment funds. The author also notes that there is a lack of people’s involvement in joint investment institutions.Discussion. The research findings are applicable and can be used in implementing strategies for the growth of Ukraine’s financial services market.

Analytical assessment of current state and prospects of life insurance market development in Ukraine

The most important factor for the socio-economic development of each country is the well-being and health of its citizens. Unfortunately, at present, these two elements are focused only in developed countries. After all, ensuring the social protection of population and the constant increase in the level of income of society is a priority of all cases in most countries of the world. As for Ukraine, this issue has remained almost without attention for a long time. However, today the role of social protection of citizens has increased considerably. Such a role is actually realized through the development of the life insurance market.The article deals with the scientific approaches to the interpretation of the concept of «life insurance» and its role in the economy of the state and the life of each person is determined. The current state and prospects of life insurance market development in Ukraine are analyzed.

Factors Influencing Life Insurance Market Development in Montenegro

Montenegrin insurance market is in a low level of development compared to developed countries, with dominant share of non-life insurance. There are many factors influencing the insufficient development of life insurance in Montenegro. This manuscript offers an analysis of significant factors that have important impact on life insurance products purchase. In order to prove the hypotheses established in the manuscript, based on the survey, chi square test of independency and regression analysis were carried out. Testing results showed that age structure and education as demographic factors as well as level of employment as economic factor highly influence demand for life insurance in Montenegro while there is no evidence that different trust in insurance system, gender and region influenced purchase of life insurance.

Insurance Market Development and Income Inequality

This study aims to empirically analyze the relationship between insurance market development and income inequality for 13 countries from 1980 to 2006. Specifically, we examine how country-level income distributions are related to one particular measure of insurance market development. Our proxies for insurance market development are total life insurance premiums (LP), and total non-life insurance premiums (NLP), which are used as independent variables. The dependent variable is the Gini coefficient (Gini, a common measure of income inequality). Granger causality tests and Generalized Method of Moments (GMM) methodologies were employed to analyze correlations between these variables. Granger causality tests were used to determine if the direction, if any, of the cause and effect relationships among these variables. The results of the Granger causality test indicate that LP affects the Gini coefficient while NLP is influenced by Gini in the total sample of countries. For the higher income economies, NLP is influenced by Gini, whereas both LP and Gini affect each other, and NLP affects Gini in the lower income group. Using the GMM methodology to perform a correlation analysis controls for endogeneity among independent variables, the results suggest that LP has negative (-) relationship with Gini for the total sample. Gini is also negatively (-) related with LP in the higher income economies. Thus, the evidence indicates that life insurance market development results in reduction of income inequality for the total sample of countries. Furthermore, income inequality is lessened as the life insurance market expands in the higher income economies. The empirical findings have some implication for insurance consumer well-being in high income countries.

AREAS FOR INNOVATIVE PRODUCTS IMPLEMENTATION IN THE INSURANCE MARKET OF UKRAINE

The aim of the article is to assess the prospects for the implementation of the investment life insurance in Ukraine. The study analysed the experience of foreign countries in the investment life insurance market development. Also, an analysis of existing definitions for the term is carried out; the result is the conclusion that they are limited to only a descriptive characteristic that relates to a particular aspect of the product. Upon that, a comprehensive definition is absent at all now. Methods. The study is based on a comparison of products with the traditional life insurance, which exist in the world practice. Practical importance. Increase in the inflow of long-term resources in the Ukrainian economy through the implementation of an innovative unitlinked product. Transformation of the life insurance industry into the high-margin business sphere in Ukraine. Importance/originality. A technique of constructing an innovative unit-linked product depending on the specifics of the domestic insurance market performance is developed. Results. The article considers in depth the specific features of unit-linked products, which distinguish this life insurance type from the classic accumulative insurance. In addition, it highlights other important characteristics such as a high level of flexibility and transparency of all the components. Also, the advantages and disadvantages of unit-linked products are considered as compared to alternative products, its classification is held for the selected parameter group. The estimations of the unit-linked product development prospects, as well as its influence on the growth of the insurance market, are made. The study justifies the legislative consolidation of the investment life insurance along with a number of expansionary measures successfully implemented in Eastern European countries, which are similar to Ukraine. The result within the framework of this direction is the development of steps for the implementation and development of the unitlinked product in Ukraine.

Does life insurance activity promote economic development in India: an empirical analysis

PurposeThe role of financial institutions and financial intermediaries in fostering the economic growth by improving the efficiency of capital accumulation, encouraging savings and ultimately improving the productivity of the economy has been well accepted by now. Recent studies show that the insurance industry can improve the economic growth through financial intermediation, risk aversion and generating employment. This study aims to find the relationship between life insurance industry and economic development in India.Design/methodology/approachThe study uses the VAR‐VECM model to find out the long run and short run relationship (if any) between life insurance growth and economic growth along with Granger causality test to suggest any causal relationship.FindingsThis study finds that there is long term relationship between life insurance industry and economic development in India. And the Granger causality test suggests that life insurance sector improves the overall economic development in India and the reverse is not significant.Research limitations/implicationsThe only limitation to study the relationship between life insurance sector development and economic development is the data set which has been used is annual data as the quarterly data were not available for insurance industry.Practical implicationsThe study documented the long run relationship between life insurance industry and economic development in India and finds that the life insurance sector improves the overall economic development in India. This would help us to understand the implications of the life insurance market development in the post reform era.Originality/valueThere is a dearth of literature on the Indian economy in relation to the insurance sector, specifically the life insurance sector. This is the first attempt to study the impact of life insurance development on Indian economy after the reforms initiated in the insurance sector.

Analysis of life insurance premium in regard to net income as an influencing factor: The case of the Republic of Serbia

During the last few years, life insurance market in Serbia has had an upward trend, however, it still significantly falls back in comparison to developed European countries. This paper presents a projection of life insurance premium on the basis of linear trend parameters and correlation degree between the average net income and the amount of life insurance premium. Additionally, the necessity of intense development of life insurance market is emphasized. The results indicate that development rate of life insurance market in the Republic of Serbia is not sufficient and that there is a significant influence of net income on the amount of life insurance premium.

Evaluation of Life Insurance Market Development in Poland During the Years 1991-2010

Radical changes in Poland during the last decade of the 20th c. causednot only a significant acceleration of Poland's economic growth rate but also rapid increase in the importance of insurance for the national economy. The penetration coefficient, i.e. the ratio of the gross premium written to the GDP, which in case of the total premiums increased from 1.83% in 1991 to 3.83% in 2010, and in case of life insurance from 0.26% to 2.31% respectively, is considered one of the synthetic measures of that importance. Although the Polish insurance market is developed far less than the European Union market where that coefficient is 7.9% and 4.8% respectively those differences decrease every year. The similar trend is presented by the depth coefficient that is the per capita insurance premium that additionally in case of life insurance increases faster than in case of the insurance sector as a whole. This indicates a relatively good life insurance market development rate in Poland although that market still ranks within the second half of the total number of the European Union countries' domestic markets.

Regional differences in development of life insurance markets in China

This study employs flexible Fourier unit root test proposed by Enders and Lee (2012) to examine the regional differences in life insurance market development in China. We find that property of stationarity for life insurance market development varies across different regions. Specifically, stationarity prevails in provinces with middle and low income, indicating characteristics of convergence and the possibilities to forecast future movements of life insurance activities based on past behavior, while 7 out of 10 provinces in high-income group show non-stationarity, suggesting unbound development in these regions and weak predictability. Justifications for the test results are presented from aspects of development of financial market, market structure of life insurance and business strategy of life insurance companies, and implications for policy-making are also given.

The exploration of future tendencies of the Lithuanian life insurance market

The objective of the research: The article treats the development tendencies of the Lithuanian life insurance market and evaluates its actual perspectives as compared to the markets of other European Union countries.The subjective of the research: The tendencies of the Lithuanian life insurance market development and its perspectives in the European context.Research methods: The analysis of the life insurance market embodies the arranged, systemized and carefully analyzed empirical data. The research uses the primal statistical data of the Lithuanian life assurance market collected and generalized by the Lithuanian Life Assurers Association and the Insurance Supervisory Commission of the Republic of Lithuania, and the statistical data of the Department of Statistics to the Government of the Republic of Lithuania concerning Lithuanian macroeconomics indexes. Some notices and assertions are circumstantial to the personal experience of the author.