Management Of Insurance Companies Research Articles

Designing a Model for Implementing Technologies in Insurance: A Qualitative Study

Objective: The primary objective of this study is to present a paradigmatic model for the adoption and utilization of insurance technologies (InsurTech) in domestic insurance companies with a special emphasis on open innovation. Methodology: This qualitative research utilized a grounded theory approach. Data were collected through semi-structured interviews with 12 experts, including university professors in the field of insurance, senior managers of insurance companies, stakeholders, and policyholders. Theoretical sampling was used, and the interviews continued until theoretical saturation was reached. Data analysis involved three stages of coding: open coding, axial coding, and selective coding, using MAXQDA software. In total, 150 open codes, 21 category codes, and 6 final axial codes were identified. Findings: The results revealed that the adoption and utilization of insurance technologies in domestic insurance companies are influenced by several main components, including knowledge management, behavioral factors, practical factors, infrastructure, technology perception, and managerial factors. The study also highlighted the significance of open innovation in accelerating the transformation of the insurance industry. The findings are consistent with previous studies by Sionani et al. (2023), Wang (2021), and Kuitanovich (2021), which emphasize that technology adoption is a multi-dimensional phenomenon influenced by perceptions, attitudes, beliefs, and engagement levels of individuals and organizations. Conclusion: This study concludes that the adoption of insurance technologies, supported by open innovation, is essential for the digital transformation of the insurance sector. Factors such as managerial behavior, customer engagement, technological infrastructure, and knowledge management play critical roles in the successful implementation of these technologies.

Determinants of Dividend Payout in Private Insurance Companies of Ethiopia

This study aimed to identify determinants of dividend payout in Ethiopian private insurance companies. To achieve this objective, a quantitative research approach was used. Secondary data from ten insurance companies for eleven years period from 2010 to 2020 were used as panel data for analysis. The study analyzed both internal and macroeconomic variables; profitability, liquidity, leverage, firm size, firm age, and growth from internal factors and GDP and inflation from Macroeconomic variables. The random effect model was used to identify the effect of each explanatory variable on the dividend payout of Ethiopian private insurance companies. The result showed that profitability, liquidity, and firm size were found significant factors in dividend payout. Contrary to the predictions, the remaining variables-firm age, leverage, growth, GDP, and Inflation found to be insignificant. Thus, profitability, liquidity, and firm size have a positive and significant effect on dividend payout as predicted. Therefore, Ethiopian private insurance company managers should prioritize profitability, liquidity, and firm size when making dividend payout decisions.

Managerial Models and Their Contribution to the Successful Use of Financial Applications

This study examines the suitability of the managerial model (the strategy, support and competence of managers) on the successful use of financial applications for insurance companies registered with the Indonesian Financial Services Authority (OJK). Quantitative methods used to confirm the proposed model and predict the magnitude of the influence that arises between the variables studied. Primary data was collected by distributing questionnaires to 313 accounting and finance managers of insurance companies registered OJK Indonesia and 160 sample sizes were collected through a simple random technique. Data analysis used Covarian Base Structural Equation Model (CB-SEM) with Lisrell 8.5 software. The results of this study have succeeded in confirming the conceptual model developed by researcher and proving that managerial model variables have an effect on the successful use of financial applications in insurance companies registered OJK Indonesia. This research proves that the successful of using financial application depends on the relevance of the user. The Managerial Model shows that the right management strategy and top management support as well as adequate managerial competence effectively make the system more flexible, integrated, easy to access which in turn creates user satisfaction and intensive use of the system in an organization. The successful use of applications in an organization encourages the company's operational activities to run effectively and efficiently and to achieve competitive advantage

Tax planning and financial performance of insurance companies in Ghana: the moderating role of corporate governance

The insurance industry is a contributor to gross domestic product (GDP) in the Ghanaian economy and, thus, effort at improving its financial soundness through tax planning (TP) could enhance its level of GDP contribution. Previous studies on TP have been conducted mainly among the non-financial firms, with few on banks. This study turns the attention of TP towards the insurance industry, which has been a good source of fund mobilization in the country. Within the systems panel dynamic generalized method of moments (GMM) framework, the study examined the moderating impact of corporate governance (CG) on the relationship between TP and the performance of insurance companies in Ghana. The study employs the causal design to examine the extent and nature of the cause-and-effect relationship between the quantitative variables used. The data comprised of 117 observations from 35 Ghanaian Insurance firms over the 2012–2017 period. The study found evidence of a non-linear relationship between tax planning measured by effective tax rate (ETR) and the performance of insurance companies measured by return on equity (ROE) and return on asset (ROA). Moreover, the study found that CG moderated the relationship between TP and the performance of insurance companies. The study recommends that managers of insurance companies intensify the CG measures to help mitigate the agency conflict and associated costs between management and shareholders.

КОНСТРУЮВАННЯ ВЗАЄМОВИГІДНИХ ВІДНОСИН ІЗ КЛІЄНТАМИ У ДІЯЛЬНОСТІ СТРАХОВИХ КОМПАНІЙ

Introduction. In the conditions of rapid digitalization of almost all spheres of social life, insurance companies are trying to rebuild their management to meet the requirements of the modern world. In particular, insurers actively use modern, innovative methods of attracting and retaining customers with the aim of forming an effective system of mutually beneficial relations. Each insurance company uses a variety of approaches to build mutually beneficial relationships with customers, with an emphasis on both initial customer acquisition and retention and maintaining high customer loyalty. The main goal of companies is usually to make a profit, with the only difference that it is not a one-time profit, but a sustainable profit over prolonged period. The purpose. The purpose of the article is to develop approaches to the formation of mutually beneficial relations with clients of insurance companies in order to maintain consumer value and identify the main business processes that ensure the success of the insurance company's operation. Results. The article considers approaches to the management of insurance companies and substantiates the need to integrate market and resource approaches, which allows insurance companies to identify individual customer profiles, attract the necessary resources and transform established business processes in accordance with consumer requests and market requirements. At the same time, the core of this management concept is the value of the client and the relationship with him. The paper presents the main components of insurance company value formation. It has been proven that the construction of mutually beneficial relations with clients is a systematic process of formation, development and maintenance of valuable relationships, or in other words, interactive and mutually beneficial processes between the insurance company and the consumer with a focus on multiple transactions. The main economic arguments in terms of constructing mutually beneficial relations with clients include: easier retention of existing clients than attracting new ones; the ability to obtain higher profits under the condition of maintaining loyal customers due to the formation of potential long-term benefits. It is substantiated that the construction of mutually beneficial relations with customers should be formed according to a systemic approach and presented as the construction of a complete system consisting of market, organizational and financial elements. Conclusions. In order to build mutually beneficial relations between the insurer and the insured, the insurance company should focus its attention on the following key aspects: effective management; optimal pricing; rational underwriting, which should be aimed at assessing those risks that are not amenable to the automatic assessment process; helping agents assess complex and unique risks; analysis of the insurance portfolio from the standpoint of identifying unsatisfactory results and areas of risk concentration; ensuring competitive customer service; formation of the company's image, starting from the company's WEB site and ending with communication with various stakeholders; improvement of insurance products in accordance with market requirements and on the basis of cooperation with technological companies.

Digital Entrepreneurship and Performance of the Insurance Industry Sector in Kenya

The insurance industry in Kenya has become very competitive due to the shrinking demand of noncompulsory insurance products and negative perception by the general public. To ensure improved organization performance, insurance companies have to adopt the use of technology like use of mobile technology, information communication technology platforms, information systems, online services platforms, electronic advertising and risk analysis. This study therefore sought to assess the effect digital entrepreneurship on performance of insurance companies in Kenya. The study was guided by the following specific objectives; to assess the effects of Technological Evolution on performance of insurance companies in Kenya, to establish the effects of digital business processes on performance of insurance companies in Kenya, to determine the effects of marketing technology on performance of insurance companies in Kenya, and to find out the effects of e-procurement transformation on performance of insurance companies in Kenya. The study was anchored on diffusion of innovation theory, dynamic capabilities theory, evaluation theory, and value chain theory. This study used a descriptive research design. The unit of analysis was the 55 insurance companies in Kenya while the unit of observation was top management employees. The study adopted census technique. The study selected a pilot group of 10 middle level managers from the target population. Data collected was both quantitative and qualitative in nature. Data analysis was done with use of SPSS version 25 and presented using percentages, tabulations, among other techniques. The qualitative data analysis was done by use of content analysis and was presented in prose form. The study employed a multivariate regression model to study the relationship between the dependent variable and independent variable. The study concludes that technological evolution has a positive and significant influence on performance of insurance companies in Kenya and that digital business processes has a positive and significant influence on performance of insurance companies in Kenya. Further, the study concludes that marketing technology has a positive and significant influence on performance of insurance companies in Kenya and that e-procurement transformation has a positive and significant influence on performance of insurance companies in Kenya. This study therefore recommends that the management of insurance companies in Kenya should ensure the embrace the latest technology to facilitate organization performance. In addition, the management of insurance companies in Kenya should ensure adoption of digital marketing strategies to market their products hence improving their market share. Keywords: Digital Entrepreneurship, Performance, Insurance

Identifying, Prioritizing, and Assessing Factors Influencing Customer Loyalty Covered by Supplemental Insurance

Background. Given that the market environment is becoming specialized in different sectors, it is necessary to identify specialized indicators of customer loyalty and their priority to improve the provision of complementary health insurance services. This study aimed to identify, prioritize, and measure the loyalty indicators in people covered by supplemental insurance. Methods. An exploratory study was conducted using a mixed-method approach (qualitative-quantitative). In the qualitative section, a total of 20 interviews was conducted with faculty members, managers, and experts of insurance companies in Khuzestan province (Ahvaz city of Iran), and in the quantitative section, a total of 380 interviews was conducted with staff of supplementary health insurance. In the qualitative section, the data were first extracted using scoping review methodology, then coded and classified using the data-driven method. Next, each indicator was prioritized using the fuzzy Analytical Hierarchy Process (AHP). Data were analyzed using Structural Equation Modeling (SEM) and Smart PLS software. Results. Thirty eight articles was included in the scoping review. After the semi-structured interview, five indicators were identified, including customer satisfaction, customer trust, repurchase intention, recommendation to others, and brand preference. In our study, customer satisfaction (0.269), repurchase intention (0.233), brand preference (0.196), customer trust (0.155), recommendation to others (0.147), respectively, had the greatest impact on customer loyalty. Conclusion. According to the results, customer satisfaction was the most important factor influencing loyalty. Therefore, the managers of insurance companies should pay more attention to increase insured individual satisfaction and improved customer loyalty in companies.

Technological Advancement and Risk Management In Composite Insurance Companies in Nigeria

Purpose: The study focused on the effect of technological advancement on the Risk management of insurance companies in Nigeria. The study's objectives were to examine how technological innovations enhance the identification of policyholder risk by insurance companies and evaluate how information technology has improved the identification of risks inherent in investment by insurance companies. Methodology: A survey research design was employed in this study. The study focused on the 14 composite insurance companies in Nigeria, only five of which were selected based on gross premium written and retention ratio. The targeted population of the study was 1569, while the sample size was 181 employees of the selected insurance companies. A well-structured questionnaire was formulated and administered, out of which 163 were filled and used for analyses using regression analysis with the SPSS (IBM 23) package. Results and Findings: The results showed that technological innovation had enhanced insurance companies' identification of policyholder risks. In contrast, information technology has not improved the identification of risks inherent in investment by insurance companies. Thus, the study recommended, among others, that insurance companies should invest more in information technology to help achieve better results.

The Impact of Learning and Culture on Organizational Identification: An Indian Case Study

As it relates to the contemporary business world ̧ the importance of the strength in which a firm ́s people identify with an organization cannot be understated. Members who strongly identify with an organization experience an increased “connectedness” with the organization within which they are employed. Hence it becomes essential to enhance organizational identification among employees. An extensive study on the variables that enhances identification reveals that culture and learning practices in an organization stimulates identification. Hence the objective of this study is to explore the impact of culture and learning on different levels of organizational identification. This research employed a survey design ̧ deriving a sample of 378 respondents from 10 Insurance Companies. Multiple Regression analysis and Multiple Discriminant Function Analysis were done to analyze the data. Findings of the study have implications for both the researcher as well as for managers of Insurance Companies.

Determinan Proporsi Dana Tabarru’ pada Lembaga Keuangan Asuransi Jiwa Syariah

Financial management in Islamic insurance companies uses a split fund system. It is also supported by PMK Number 18/PMK.010/2020, which emphasizes that operators or sharia insurance companies must separate wealth by tabarru' fund obligations from the obligations and assets of company funds. The separation of funds has been carried out since participants pay contributions (premiums) at the beginning of the transaction. The purpose of this study is to analyze the factors that influence the proportion of tabarru' funds in Sharia Life Insurance companies. This research is a quantitative research, and the source of the data obtained is secondary data. The population is 21 Sharia Life Insurance companies registered with OJK. The sample of this study uses a purposive sampling technique by producing 16 sharia life insurance companies registered with the OJK, using annual financial statements according to the variables used during the period (2017-2019). Data analysis uses panel data regression analysis with fixed effects model which is processed using eviews 9. The findings from this research show that claims, sharia reinsurance, and operating expenses have a significant effect, while the growth of tabarru' funds and investment returns of tabarru' funds have no significant effect. With the coefficient of determination (R square) 0.775396 which means claims, sharia reinsurance, operating expenses, growth of tabarru' funds and investment returns of tabarru' funds can explain 77% of the proportion of tabarru' funds and the rest is influenced by other variables outside the study..
 Keywords: Proportion of Tabarru' Funds, Sharia Life Insurance, Separation of Funds

ROLE OF TRANSFORMATION LEADERSHIP ON STAFF PRODUCTIVITY IN THE INSURANCE INDUSTRY

Purpose: The study examined the role of transformation leadership on staff productivity in the insurance industry.
 Materials and Methods: The research method used in this study involved the use of secondary data obtained from published studies, journals, articles and reports. This method was more preferred than conducting the actual field work since it saves time and reduces the cost of data collection. It is also easily accessible and convenient to use at any given time.
 Results: The findings of this study indicated that the empirical studies consisted of various research gaps including conceptual, contextual and geographical gaps. This is because some of the studies focused more on the influence and effects of transformational leadership on employee performance, innovation behaviour, organizational learning, organizational commitment rather than on employee productivity. On the other hand, the findings of other studies discussed on other leadership styles apart from transformational leadership while most of the studies were conducted outside Kenya.
 Recommendations: The findings of this study will be applicable to a wide range of industry players in the insurance sector. The management of insurance companies will benefit from this study since it clarifies the significance of transformational leadership and its function in enhancing employee productivity in the insurance sector. The policymakers in the insurance will also benefit from this study especially when implementing policies with regards to improving the productivity of employees and empowering managers and leaders. Further, this study will also be relevant to the researchers and academicians since it will be used to add up to their literature work and will also motivate them to carry out more research related to the current topic so as to address some of the research gaps identified in this study.

신지급여력제도(K-ICS) 도입에 따른 보험사 부채조정 방안의 법제화에 관한 연구

Recently, there is a public opinion that the insurance industry needs to diversify its liability adjustment plans with the introduction of the new Solvency Margin system (K-ICS), which is a system to evaluate the Solvency standard of insurance companies according to IFRS17, which evaluates assets and liabilities at market value. A concern for the domestic insurance industry, which is about to introduce K-ICS, is that if a debt is measured on a market value basis under a low-interest rate trend, debt will increase. If the problem of mismatch between assets and liabilities becomes larger due to an increase in liabilities, the burden of redemption by insurance companies will increase and it is expected that capital management will become difficult. Therefore insurance companies emphasize supporting the need for insurance company debt management. The systems that have been informed in Korea as insurance liability adjustment measures that are attracting attention ahead of the introduction of the new Solvency Margin system include coinsurance, insurance buy-back, and run-off. Although coinsurance has already been introduced and enforced, it is not easy to utilize the system due to the limited utilization of the system such as coinsurance costs, and the effectiveness of the system has been questioned. Next, insurance buy-back that it is not familiar with is a system in which insurance companies pay policyholders a premium for high-interest insurance products sold in the past and eliminate existing insurance policies. From the standpoint of an insurance company, there is not much profit or loss, but the risk burden, which is an immediate issue for insurance companies, is high. It is a system that can contribute to the sustainability of insurance companies. Finally, run-off refers to the transfer of all or part of an insurance contract to another company and is used for the transfer of insurance business, business sale, risk mitigation, etc. of non-core business divisions of insurance companies. This paper considers that it is necessary to diversify insurance company debt management measures for the sound management of the insurance industry at present, when the new Solvency Margin system is about to be enforced. After examining possible legislative reviewing through a comparative study, this paper suggests the legal considerations to introducing insurance company debt management.

Factors influencing business intelligence adoption: evidence from Jordan

ABSTRACT Business intelligence (BI) adoption in developing countries including Jordan is still under development. This study examines the factors impacting the decision to adopt BI and its impact on decision-making performance. A model was proposed which comprises unaddressed factors and the reported key factors relating to BI adoption. A questionnaire was prepared and used to gather data from 22 Jordanian insurance companies that were involved in BI adoption following the model. A total of 153 responses were analysed using partial least squares path modelling. Factors associated with BI adoption were determined. The most positive and significant determinants of BI adoption were: Compatibility, relative advantage, information quality, and system quality. Complexity was significantly and negatively linked to BI adoption. Further, BI adoption was positively linked to decision-making performance. This study could assist managers of insurance companies in increasing the use and expansion of BI in Jordan.

Management and Sustainable Development of Insurance Companies

The report examines some aspects of the management of insurance companies for the purposes of sustainable development of the business. This is a starting point in building the corporate and business strategy of insurance companies. The sustainable development of the business is also the ultimate goal of the main activities of the insurer such as: - indemnification of the insured upon occurrence of the covered risks under the insurance contracts; – risk management in accordance with the principles of insurance; – providing value to the insured; – claims management by observing correct payment under the contractual terms, quality customer service and minimal costs; – return on investment of insurance funds. The main factors for sustainable development related to strategic planning and activities related to insurance are analyzed: sales, claims management, investment management, administration, other.

Implementation of the Risk Management Methods of Insurance Companies

Special emphasis is put on the strategic management of insurance companies and the management of risks as a possibility to realize losses and to manage them by means of methods aimed at reducing, controlling and financing those risks. The process of risk management is an ongoing and evolving one with a clear separation of duties for the staff involved in its management in and out of the insurance company. The focus is on the risks for the insurance company and the search for adequate methods for risk management. The purpose of this article is to systematize the risks inherent in the insurance company and the possible methods of risk management with applicability in practice. The main thesis of the article is that risk management methods have an inherent and justified, full or partial application among insurance companies and must be complex. The complex nature also requires integrated application of management methods, by risks and levels – “insurance company level”, “insurance company level and insurance product” level.

Impact of Job Involvement on Organisational Commitment with Special Reference to the Branch Managers in Insurance Companies in Sri Lanka

Impact of Job Involvement on Organisational Commitment with Special Reference to the Branch Managers in Insurance Companies in Sri Lanka

Claim Management of Non-Life Insurance Companies in Ghana: Does It Impact on Profitability?

This study seeks to interrogate the impact of claim management on the profitability of non-life insurance companies in Ghana covering the years 2013-2020. The study employs the fixed effects and random effects techniques with data covering the period 2013-2020. Hausman test is used as an appropriate approach to conduct this study. Our work measured profitability utilizing interpretive financial tools such as return on assets (ROA) and returns on equity (ROE). The results of our research indicates that claim ratio and retention ratio have a profound adverse impact on return on asset. In terms of return on equity (ROE), claim ratio and expense ratio negatively and significantly affect profitability. This study recommends that non-life insurance companies should institute an effective claim processing system with highly qualified, experienced, trained and technical staff to ensure efficiency in claims management.

Job Experience and Personal Financial Management Among Finance Managers of Insurance Companies in Kenya

Personal finance management is important so that people can manage personal finances and make informed financial and economic decisions. People with weak personal financial abilities are vulnerable to financial stress, which can harm their physical and mental health. The purpose of this study was to establish the relationship between job experience and personal financial management among finance managers of insurance companies in Kenya. The study adopted a descriptive research design and targeted finance managers from 53 licensed insurance companies in Kenya. Data was collected using a questionnaire and analyzed using descriptive statistics and regression analysis. Results indicated that job experience explained 34.9 percent of variations in personal financial management. Further, the findings revealed a positive and significant relationship between job experience and personal financial management (β=0.076, p=.000). The study concluded that job experience had a positive and significant effect on the personal financial management of finance managers. The study recommended that employees should use their financial literacy knowledge and experience gained in the insurance sector to employ investment practices in their personal finances.

Implementing Enterprise Risk Management in Life Insurance

This paper discusses a framework for ERM with particular emphasis on the life insurance industry. The ERM framework involves eight key features ranging from governance aspects to risk management policy, risk tolerance, own risk and solvency assessment, capital assessment on economic and supervisory basis and continuity analysis. Given that the life insurance industry is a regulated industry the supervisory role is an important feature of the ERM framework. The paper highlights the different stages of ERM maturity starting with a compliance orientation and the highest stage with linkage to strategy and value creation. The insurance industry is currently somewhere in between but there are a lot of dijferences in the maturity of ERM within the industry. Embedding ERM is a significant challenge for the industry with quantification of economic capital, embedding risk management into decision making and dealing with operational risk being some of the primary ones that the life insurance industry is facing. Actuaries have played an important role in risk management of insurance companies for several years and their skills are well suited to take leading roles in ERM. This will however require them to not only possess technical skills but also rise to the challenge of dealing with non-quantifiable risks, change management and communication with senior management and board. ERM combines the three key elements of insurance risk, capital and value. By integrating these elements insurers are able to enhance performance assessment at a more granular level reflecting the risks underlying the business and identifying opportunities of taking more risk to create shareholder value.

Impact of Covid-19 on Georgian Insurance System

Insurance companies, as representatives of financial intermediaries, have an important role in stabilizing the country's financial system. In the context of the Covid-19 pandemic, great importance is attached to the effective financial and operational management of insurance companies, not only to ensure the sustainability of the financial system, but also their efficient operations are one of the main guarantees of the solvency of insurance companies. The Covid-19 pandemic revealed the weaknesses that existed in the global insurance system and provided us with important data to address potential problems in the future. The current pandemic has also accelerated existing digitization trends. Insurance companies will have to innovate and adapt as much as possible to the needs of consumers in order to withstand stiff competition. The aim of the research is to assess the impact of Covid-19 on insurance companies in Georgia, to identify its features, as well as to identify potential problems and develop recommendations for their elimination. The subject of research is the operational and financial functioning of insurance companies in the conditions of the Covid-19 pandemic, and the object of research is Georgian insurance companies. Keywords: Covid-19, Insurance industry, Georgian insurance system, Insurance companies. Jel Codes: G01, G22.