Life Insurance Sector Research Articles

The Impact of the Life Insurance on Economic Growth in ASEAN

The development of the insurance business in ASEAN has an impressive growth in the course of recent years. Reverse statement from Ouédraogo et al., (2016) who explained the level of life insurance development in developing countries remains low comparatively to developed countries. The ASEAN insurance industry, with the increasing number of insurance companies and people using insurance services, can even play a greater role in supporting overall economic growth in that region. This study aimed at examining the contribution of life insurance sector which is measured by three parameters e.g insurance penetration, insurance density and premium volume to the economic growth in the sample of 6 developing countries on ASEAN religion during 2005-2015 period i.e. Singapore, Malaysia, Phillipine, Thailand, Vietnam and Indonesia. The analytical method is applied by using fixed effect model. The result of this study showed that the life insurance premium volume, penetration and density have positive effects on economic growth.

Consumer Protection Regulations in Life Insurance industry and its challenges: An empirical analysis from Indonesia

Trust is a crucial factor in the financial industry. Some financial scandals that had impacted Indonesia include the economic crisis in 1998 and have encouraged the regulator to apply adequate consumer protection for the people of Indonesia. In addition, the existence of adequate consumer protection will have a direct impact on the Indonesian financial industry, especially the life insurance sector where the penetration rate is still low in the last 10 years. In the Indonesian context, the implementation of consumer protection is immature and inconsistent. Based on empirical research, this paper explored the existing conditions of consumer protection implementation across life insurance industry in Indonesia. Moreover, this paper also analyzed the perception of the benefits and the challenges in implementing such requirements. The study found that consumer protection is still at the work in progress stage, inconsistent and not optimally implemented although there are number of benefits and risks if it were implemented as required. This condition has arisen due to the lack of regulator’s commitment in the consistent implementation, lack of assurance on the quality, improper selling process, as well as limitations in capability and competence in the appointed dispute resolution body. This study suggests a number of actions: [1] Periodic regulator quality assurance for the quality of implementation in the form of assurance review and sanctions impose; [2] strengthening the need based selling for life insurance companies; [3] developing an effective and measurable financial literacy and financial inclusion programs for consumers; [4] building a life insurance product and process related competency and capability of the arbitrator and mediator from the appointed dispute resolution; and [5] establishing awareness and the existence of the dispute resolution body across cities in Indonesia.

The Effect of Value Congruence on Customer Focus in the Private Life Insurance Sector : A Study of Haryana State in India

It is very important for organizational values to match with employees' values, which is termed as value congruence. Equally important is customer focus, which is an organizational stance in which all aspects of a company's production and delivery of goods or services are directed by the best interests of the customers. This study examined the effect of value congruence on customer focus in the private life insurance sector in Haryana. Data were collected on the level of sync organizational and employees' values through two different questionnaires from 200 middle and lower level management employees of seven private life insurance companies. The study showed that value congruence was significantly related to customer focus through job satisfaction, employees' sense of belonging, organizational commitment, and employee loyalty.

Impact of individual market orientation on selling and customer orientation

ABSTRACTWe analyze the direct effect of individual market orientation on selling orientation-customer orientation of corporate insurance agents licensed in an emerging market based on the data collected using a random survey of corporate insurance agents in the Life Insurance sector in India. The results indicated that individual market orientation had a significant relationship with selling orientation, but the intensity was weak. However, causal relationship between individual market orientation and customer orientation was moderate. Future research should focus on analyzing the influence of the dimensions of individual market orientation on employee commitment, loyalty and should analyze the moderating effects of various associated variables. The findings indicate that efforts should be made to generate market-oriented behavior among individuals to propel selling orientation and customer orientation.

Challenges and Opportunities in Implementation of GST Bill for Insurance Sector in India

The Indian economy is witnessing streamlined and focused efforts, of the kind off late for the implementation of the Goods and Service Tax (GST). With the services sector accounting for 60% of the GDP, the impact of GST on the service sector is likely to run deep. GST is undisputedly the single largest indirect tax reform since independence. It has the ability to change India's indirect taxation landscape and resulting in a positive impact on the entire economy. The present study is an attempt to understand the impact of GST on Insurance Industry along with highlighting the basic concept of GST, models of GST and its pros and cons in Indian context. The study also highlights the challenges in implementing the system. The introduction of GST will have a definitive impact on services offered by the life insurance sector. Seeking to levy GST on life insurance services would be in contrast to several countries where life insurance is a social security benefit being provided. Given the strategic importance of life insurance sector and the vast untapped market, it is believed that Government will address the concerns of the industry including ensuring merit rate of GST on insurance sector.

Impact of Foreign Direct Investment in India on Insurance Industry

The study concluded that increase in foreign direct investment (F.D.I.) is optimistic move for the future of Indian Life Insurance Sector, since this sector need huge amount of capital investment which can be done effectively only through increase in FDI and it enhance overall performance of insurance sector. Parliament has passed Insurance Laws (Amendment) Bill, 2015. It was first passed in LokSabha on 4 March 2015 and later in RajyaSabha on 12 March 2015, which will become an Act when the President signs it. The bill aims to bring improvements in the existing laws relating to insurance business in India. The bill also seeks to remove archaic provisions in previous laws and incorporate modern day practices of insurance business that are emerging in a changing dynamic environment, which also includes private participation. The insurance sector in India has a great potential even during the downtrend and FDI flow is expected to rise in the mere future.

The financial effects of Trumpism

This paper investigates the effects of the 2016 US presidential election, and the events occurring in the run-up to election day, on the US stock market. We examine 47 events, starting with Donald Trump's announcement that he would contest the presidential election, using the event study methodology and asset pricing models. Furthermore, we conduct several robustness tests, including the Corrado ranking test, the non-parametric conditional distribution approach, adjustment for market integration, the removal of firms with firm-specific news, and the use of more than one asset pricing model. We observe that the US stock market was affected by the 2016 presidential election and that the US stock market was highly responsive when Trump secured the Republican nomination. The life insurance sector was one of the most negatively affected sectors due to Trump's intention to replace Obamacare. In addition, our results show that the events around the most recent election can lead to diamond risk structures.

Impact of Demonetisation and GST in Life Insurance Sector

Impact of Demonetisation and GST in Life Insurance Sector

Does Corporate Social Responsibility Influence Customer Loyalty in the Taiwan Insurance Sector? The role of Corporate Image and Customer Satisfaction

ABSTRACTThis study aims to investigate the impact of corporate social responsibility on customer loyalty, and examines the role of corporate image and customer satisfaction. The empirical results indicate a positive effect of economic and legal corporate social responsibility on customer loyalty, as well as a partial mediating effect of customer satisfaction between corporate social responsibility and customer loyalty. Moreover, this study identifies the moderating effect of corporate image between corporate social responsibility and customer loyalty. The results of this study are useful to the life insurance sector for enhancing their customer loyalty and service marketing strategy.

“Customers perception for taking life insurance: A critical analysis of life insurance sector in Nagpur”

“If a child, a life partner, or a parent depends on you and your income, you need life insurance.”

Colossal Insurance Sector of India

Insurance sector has its roots in the Indian economy since 1818 when the first insurance company Oriental Life insurance was established at Calcutta [now Kolkata]. Even the reference can be found in the form of marine adventure trade loans and carrier’s contracts. Industry started taking shape during the British reigning. Since then the insurance industry has undergone the various reforms/changes. Enactment of Insurance Act 1938, nationalization of Life insurance sector in the year 1956, General insurance Sector in the year 1972 and again with the recommendation of Malhotra Committee Report insurance sector reopened for private players in the year 1999. Setup of IRDAI to regulate and develop Insurance Industry and to secure financial stability of the insurance sector was an added incentive too. Various efforts by the IRDAI and the Government of India such as digital channels for marketing, launching of various social scheme such as PMFBY, PMSBY, PMJBY, RSBY for increasing the penetration of insurance segment specially in rural and social sector of India. Still getting insured is the priority for the entrepreneur and professionals only. Hence it is need of an hour to think about the reasons for low penetration of insurance and the ways to foster incessant growth!

Determinants of performance of Tunisia insurance companies: case of life insurance

Business performance has attracted researchers' attention in the previous literature of corporate finance. However, in the framework of the life insurance sector, they have given a number of attentions. In our paper, we investigate empirically the effect of firm-specific characteristics (size, leverage, tangibility, risk, growth, liquidity and age) on the profitability of eight Tunisian insurance companies during the period of study from 2005 to 2015. The empirical results show that the variables size, age and growth are the most important determinants of the performance of Tunisian insurance companies as measured by return on asset ratio. Then, leverage, tangibility, liquidity and risk do not affect the performance of Tunisian insurance companies.

Consumer Behavior Analysis with Respect to Life Insurance Sector in India

Consumer Behavior Analysis with Respect to Life Insurance Sector in India

Recent Trends in the Marketing Strategies of Life Insurance Corporation of India

Life Insurance Corporation of India (LIC) is a monolithic company from last few decades. After the successful implementation of economic reforms in life insurance sector in India, LIC of India has made several positive efforts to triumph the hearts of the people. To achieve that LIC of India have adopted a number of new trends in marketing strategies for introducing innovative technologies. This study is an attempt to know about the recent trends followed by LIC of India in order to make their products available to each and every forthcoming customer in the life insurance market. The present research paper is a comprehensive study to know whether the implemented strategies have truly helped LIC of India in the changing trends of the society and will also suggest how these recent trends have helped LIC of India as a whole to manage the existing leading position in the life insurance market

Financial Soundness of Indian Life Insurance Firms : An Investigation Based on the CARAMELS Framework

Liberalization of the Indian life insurance sector has brought about a lot of opportunities and challenges. The enactment of the IRDAI Act in 1999 brought in a lot of opportunities with the rising presence of private and foreign players in the country's life insurance sector. On the flip side, the Indian life insurance sector experienced severe setbacks in terms of low profits and negative investment yield post 2007-08 owing to the contagion effects of the global financial crisis that erupted in U.S. during the year 2007-08. At the same time, the liberalization of the country's life insurance sector has further raised concerns for the life insurers in ensuring financial soundness for timely payment of assured returns to the policyholders' besides protection of the policyholders' interests. The present study provided an assessment of the financial soundness of 18 life insurance firms in India during the post-deregulation study-period from 2008-09 to 2014-15 in the backdrop of the U.S. financial crisis. In this regard, the ratio-based CARAMELS framework was used in line with the financial soundness indicators (FSIs), as proposed by the researchers of the World Bank and International Monetary Fund (IMF). The present study pointed out the impressive performances of the private life insurers in overpowering the dominance of the state-owned LICI, besides highlighting the contagion effects of the global financial crisis on the country's life insurance sector.

Work Stress and Employee Performance in Public and Private Sector Life Insurance Companies

Job stress is a complicated phenomenon that negatively affect ones psychology, behavior, emotions and thinking. Excess of stress in human body is destructive in nature. It arises when the demands faced by an individual is greater than their own abilities to handle those demands properly in the best possible manner. There are different levels of stress on different individuals and its outcome can also vary from person to person. In life insurance sector employees have to perform their routine job, build new customers and maintain old customers which are not an easy task. Stress in insurance sector is common in nature but it may vary in public insurance sector and private insurance sector. This paper is an attempt to compare the stress level of employees on the basis of working aspects, training and benefits, performance evaluation and appraisal, motivational tools, and job satisfaction and employees performance on the basis of work knowledge and performance, responsibility and time management and personal traits in both public (LIC of India) and private (ICICI Prudential Life Insurance). The study is based on data obtained from 200 employees each from LIC of India and ICICI Prudential Life Insurance Company from Jaipur, Udaipur, Jodhpur, Bikaner and Alwar. In the study the null hypothesis has been rejected by showing that there is a significant difference between the stress level of employees and performance level of employees working in public and private sector life insurance companies.

Rising Interest Rates, Lapse Risk, and the Stability of Life Insurers

This paper sheds light on the life insurance sector's liquidity risk exposure. Life insurers are important long-term investors on financial markets. Due to their long-term investment horizon they cannot quickly adapt to changes in macroeconomic conditions. Rising interest rates in particular can expose life insurers to run-like situations, since a slow interest rate pass-through incentivizes policyholders to terminate insurance policies and invest the proceeds at relatively high market interest rates. We develop and empirically calibrate a granular model of policyholder behavior and life insurance cash flows to quantify insurers' liquidity risk exposure stemming from policy terminations. Our model predicts that a sharp interest rate rise by 4.5pp within two years would force life insurers to liquidate 12% of their initial assets. While the associated fire sale costs are small under reasonable assumptions, policy terminations plausibly erase 30% of life insurers' capital due to mark-to-market accounting. Our analysis reveals a mechanism by which monetary policy tightening increases liquidity risk exposure of non-bank financial intermediaries with long-term assets.

The Effect of Demographic factors on Job Stress: A Comparative Study of Public and Private Life Insurance Sector

Job stress is a very common phenomenon in almost every organization. Some of the jobs are more stressful than others, as some can take it as a challenge and other may face excessive pressures while handling it. Every employee is different from one another in terms of knowledge, skills, ability and experience in handing situations. The purpose of the study is to identify the correlation of stress among the employees of public (LIC of India) and private (ICICI Prudential) life insurance sectors in Rajasthan in accordance with their demographic profile. Structured questionnaires were used to gather data from 200 employees each from public as well as private life insurance companies from five cities of Rajasthan i.e. Jaipur, Jodhpur, Alwar, Bikaner and Udaipur. The data was collected using Likert scale. The association of demographic factors, viz., age, designation, monthly income and no. of dependents of the respondents on various dimensions of job stressors was examined through chi-square test. There are five categories considered for job stress which are working aspects, training and benefits, motivational tools, performance evaluation and appraisal and job satisfaction.

Consumers Awareness towards Insurance Companies and their

The insurance sector is growing rapidly all over the world. The insurance industry is gaining key position in the world economy and playing a significant role to cover the life and business risk of millions. At present, the insurance industry is in a nascent stage. The impact of privatization in risk business in India has shown its impact on transformation from the state of monopoly to mushrooming companies offering innovative products to the Indians. The growth in the life insurance sector has shown new heights and the functioning of private companies has given tough challenge to Life Insurance Corporation of India. Within a short span of time, private insurance companies have acquired more than 25 per cent of the life insurance market. Many changes have taken place in the processes and procedures of insurance business in terms of its format and products as well the mindset, motives, interests, and expectations on the part of the customers also. The customers have become more vigilant, calculative and calibrated not only in terms of risk coverage but look forward for safety of investment and higher rate of returns on the saving in insurance sector

Penetration of Life Insurance Sector in India

Penetration of Life Insurance Sector in India