Management Of Insurance Companies Research Articles

Balancing Innovation and Profitability: Technological Diversification in Iran’s Insurance Industry

Abstract This study explores how technological diversification affects financial performance in Iran’s insurance industry. Using semi-structured interviews with six experts, including CEOs and faculty members, key indicators of technological diversification were identified, such as new underwriting software and digital advertising platforms. A 33-item questionnaire was developed based on these insights and distributed to top managers of Iranian insurance companies, with secondary financial data sourced from the Central Insurance of Iran. The study employes regression analysis and Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the impact of technological diversification on financial performance, controlling for firm size, debt ratio, and company age. Findings indicate a significant negative relationship between technological diversification and both Return on Equity (ROE) and Return on Assets (ROA), suggesting that the costs of adopting new technologies may outweigh their short-term financial benefits. Additionally, high debt ratios were found to adversely affect ROA, highlighting the financial risks of excessive borrowing.

Financial Projection for Long-Term Corporate Plan of a Holding Insurance Company for The Year 2025-2029

A company's long-term planning is essential for sustainable business growth and success, especially in the dynamic and competitive insurance industry. This study aims to evaluate the company's feasibility in achieving the desired net profit target based on analysis of current and projected financial data, industry analysis, and conformity with the assumptions and strategic initiatives outlined in the company's long-term plan. The research method used was qualitative. The results show strong growth in the company's key financial metrics. Gross written premium (GWP) is projected to increase from IDR 37.6 trillion in 2024 to IDR 54.5 trillion in 2029 at a compound annual growth rate (CAGR) of 8%. This growth is driven by strategic initiatives focused on market expansion, particularly in the property insurance and credit insurance business lines. Net profit is projected to increase from Rp3.3 trillion in 2024 to Rp6.1 trillion in 2029 at a CAGR of 13.2%, due to improved operational efficiency. The company's initiatives in implementing best practices and streamlining operations will lower its expense ratio from 20.8% in 2024 to 20.4% in 2029. The implications of this study provide strategic insights for insurance company management in formulating long-term policies aligned with market growth and operational efficiency. By aligning strategic initiatives and long-term financial planning, companies can be better prepared to face challenges and capitalize on future opportunities, thereby supporting long-term sustainability and profitability.

Determinants Of The Proportion Of Tabarru' Funds In Indonesian Sharia General And Life Insurance For The 2018-2022 Period

This study examines the impact of claim expense ratio, commission expense ratio, total assets, and investment profit sharing income ratio on the proportion of tabarru' funds in general and life Islamic insurance in Indonesia, both sharia and full-fledged business units. The aim is to recognise the factors that influence the allocation of tabarru' funds and how it affects the financial performance of the company. Using panel data regression analysis, this study found that the claims expense ratio has a significant positive impact on full-fledged insurers, while the commission expense ratio has a significant positive effect on the combined model and Islamic business units. In contrast, total assets negatively affect the proportion of tabarru' funds significantly in the combined model and Islamic business units, but not significantly in full-fledged insurers. The investment profit-sharing income ratio does not show a significant effect in all models. These results provide useful insights for the financial management of Islamic insurance companies in designing effective tabarru' fund allocation policies, especially during the transition period from Islamic business units to full-fledged Islamic insurance companies.

Assessing the Impact of Big Five Personality Traits on Job Performance: A Study in Association with Insurance Agents in Northern Province, Sri Lanka

The flourishing life insurance industry in Sri Lanka underscores the pivotal role of insurance agents in advancing revenue streams and overall success. This study examines the nexus between the Big Five personality traits and the Job performance of insurance agents in the life insurance companies in the Northern Province of Sri Lanka. The independent variables encompass the dimensions of openness to experience, conscientiousness, extraversion, agreeableness, and emotional stability, while the dependent variable comprises job performance. A stratified random sampling approach was employed to distribute 300 structured questionnaires among insurance agents in life insurance companies. The collected data were analyzed by using different statistical techniques. The outcomes of the multiple regression analysis underscore a substantial impact of all Big Five personality dimensions excluding agreeableness on job performance. These findings offer valuable insights for insurance agents, aiding them in making informed career choices. Simultaneously, life insurance company managers can leverage this research to refine their selection criteria, ensuring the recruitment of individuals whose personalities align with the dimensions that significantly impact job performance in the industry and identify the training needs for the personality development of the insurance agent in the life insurance companies in Sri Lanka.

Enterprise Risk Management and Performance of Insurance Companies

Purpose: This research aims to investigate the impact of risk identification (RI), risk assessment (RA), risk mitigation (RM), and risk management (RMG) on institutional performance (IP). The objective is to analyze both individual and combined effects of these risk management practices on institutional outcomes.Methods: The study used descriptive and causal research design. The data were collected using structured questionnaire with five-point likert scale, targeting 151 managers, officers, and department heads from both life and non-life insurance sectors from Rupendehi district. The correlation analysis was used to examine the relationships between variables and Stepwise regression analysis to explore the effect.Results: It reveals that RA, RM and RMG had significant positive effect on institutional performance at individual level. When they are analyzed in single model RA and RM were only found significant. RI, while consistently positive, was found to be statistically insignificant across all models. RA and RM are significant variables of institutional performance, while RI and RMG play lesser roles.Conclusion: it is necessary to acquire deeper understanding on how risk management practices enhance institutional outcomes.

Personality Traits and Employee Turnover in the Insurance Industry in Kenya

Aim: The aim of this study was to examine the relationship between personality traits and employee turnover in the Insurance Industry in Kenya. The study also aimed to evaluate the moderating effect of firm characteristics on the relationship between personality traits and employee turnover in the Insurance Industry in Kenya. Methods: This study adopted a combination of descriptive and correlational research designs. The insurance companies from which data was collected were the top 5 insurance companies based on market share in general insurance. The employees of those companies were drawn from the following cadres: middle-level managers, heads of departments, supervisors, and operational staff. This study utilized multi-stage sampling technique involving deliberate sampling and stratified random sampling. A sample size of 338 employees was used in the study and data was collected using a semi structured questionnaire. Descriptive analysis entailed means and standard deviations while inferential analysis entailed regression analysis. Results: Results showed that there was a positive and significant relationship between personality traits and employee turnover in the Insurance Industry in Kenya. It was also found that firm characteristics have no significant moderating effect on the relationship between personality traits and employee turnover in the Insurance Industry in Kenya Conclusion: The personality traits utilized in the management of employees by the organizational management in insurance firms determines the retention and turnover of employees in those companies. Recommendations: The management of insurance companies should increase the use of aptitude tests during recruitment to determine the personality traits of employees so that when they engage them in various jobs. Their personality traits would enhance the performance of their jobs and cause them to be retained in their jobs for a long period before thinking of going elsewhere and hence leading to insurance companies using lots of money on the high frequency of recruiting of employees.

Risk Management of Insurance Companies With The Implementation Of The Munich Chain Ladder Method In Claim Reserve Estimation

Risk Management of Insurance Companies With The Implementation Of The Munich Chain Ladder Method In Claim Reserve Estimation

Entrepreneurial spirit, employees skills development, and human resource management of property insurance companies: Basis for enhanced talent pool framework

Entrepreneurial spirit, employees skills development, and human resource management of property insurance companies: Basis for enhanced talent pool framework

Influence of Strategic Oriention on Diversity of Top Management and Competitive Advantage of Insurance Companies

Whereas strategy literature presents ambiguous findings on the influence of top executives on firm outcomes, there is mixed evidence that several other dynamics can come into play to enhance or downplay this relationship. This study sought to address this gap by interrogating whether strategic orientation would impact the connection between top management team diversity and competitive advantage of insurance companies based in Kenya. 54 companies targeted were subjected to a cross sectional survey and from this, 41 availed a senior executive to complete the research questionnaire presented. Data gathered was subjected to analysis with the aid of statistical software for social sciences and regression analysis applied to test hypotheses. The impact of strategic orientation was tested through the Baron and Kenny approach. The findings revealed that top manager diversity and strategic orientation affected competitive advantage despite not fully accounting for its variability. Additionally,  strategic orientation presented a statistically significant effect and proved to be a moderator in the association between top management team diversity and competitive advantage.  These findings implied that policy makers and practitioners take guidance on the importance of designing teams with diverse members that can front effective strategies for market competitiveness. The results backed the perspectives in the upper echelon and resource advantage view since it established that when teams have diverse members and calculated strategic positions, they have the capability to attain competitive advantage. The study recommended that future studies take into consideration a longitudinal approach that enables observation and analysis of relationship among variables for a considerable duration.

Eliciting Customers’ Preferences in the Cooperative Insurance Industry: Evidence from the Saudi Motor Insurance Market

This research aimed to provide a better understanding and analysis of consumer patterns relative to behavioral preferences in the Saudi cooperative motor insurance market. This aim was motivated by the fact that customers’ preferences have been underexplored in this market. Thus, this paper applied a multi-attributes decision analysis methodology to analyze the decision process of purchasing or retaining cooperative motor insurance based on a discrete choice experiment and a choice-based conjoint analysis. The methodology was conducted via a designed questionnaire that asked 385 customers in the Eastern Region to choose between a finite set of decision purchase options that varied along three key attributes: type of coverage, availability of discount, and insurance premium. Sample results showed that the most important attributes were the insurance premium, followed by the type of coverage. The availability of a discount was the least important attribute; however, compared with men, women placed a higher importance on coverage and discounts. The findings can be valuable to policymakers and managers of insurance companies in designing new characteristics for cooperative motor insurance products in Saudi Arabia in line with Saudi Arabia’s Vision 2030. JEL Classification: C9, D7, C13, G22

Application of TOPSIS Method in Evaluating the Performance of Insurance Companies: A Case Study

Insurance is a method for managing risk, as it protects against unforeseen financial losses. When you purchase insurance, you are safeguarding yourself against possible mishaps by having an insurance company compensate you or someone you designate. If you experience an accident and are uninsured, you may be responsible for all related expenses. Having appropriate insurance can help mitigate the various risks you might encounter throughout your life. Insurance not only covers unexpected incidents but also assists in paying for routine expenses such as annual medical checkups and dental visits. Furthermore, insurance companies negotiate discounts with healthcare providers, allowing their customers to pay the reduced rates. An insurance policy has two parties: the policyholder, who is the individual or company receiving the policy, and the insurer, who is the insurance company. The policyholder need not be the insured party. A person or business can become a policyholder by purchasing an insurance policy that protects another person or company. For instance, if a company buys life insurance for an employee, the employee is the insured party, and the company is the policyholder. Accounting, auditing, and actuarial standards must be carefully applied when examining insurance businesses' financial and other reports. Finding the business risks that insurance companies must deal with requires the use of financial information in particular. The management of insurance companies' technical reserves and guarantee reserve assets is crucial for reducing these risks. According to professional organizations and nations with free market economies, the main goal of financial statements in this situation is to give potential consumers the knowledge they need to make wise decisions. The economy depends on measuring the performance of insurance businesses. However, reliable performance evaluation can be difficult due to the unpredictability and complexity of the global market as well as the growing information flow. In certain situations, traditional performance measurement techniques might not produce appropriate findings. The fuzzy multi-criteria technique has been successfully used to address this issue.Critical proportional assessment is a multi-criteria decision-making analytical tool that aids in problem-solving. The COPRAS system has been developed as a tool for decision-making under specific contexts. This method calculates both the increase and decrease of criteria and improves the quality and quantity of criteria calculation. Compared to other methods, the COPRAS system can handle many criteria and offers a higher level of benefit and usage. Alternative taken as Equity and reserves, Business assets, Provision and liabilities, financial incomes, Cost of insurance, Cost of insurance. Evaluation preference taken as Life Insurance Corporation of India, HDFC Life Insurance Co. Ltd, Max Life Insurance Co. Ltd, ICICI Prudential Life Insurance Co. Ltd, Kotak Mahindra Life Insurance Co. Ltd, Aditya Birla SunLife Insurance Co. Ltd, TATA AIA Life Insurance Co. Ltd, SBI Life Insurance Co. Ltd, Bajaj Allianz Life Insurance Co. Ltd, PNB MetLife India Insurance Co. Ltd. From the result it is seen that SBI Life Insurance Co. Ltd is got the first rank where as is the Bajaj Allianz Life Insurance Co. Ltd is having the lowest rank.

Analysis of the Effect of CEO Change and Financial Distress on Earnings Management in Insurance Companies Listed on the IDX for the 2013-2022 Period

Analysis of the Effect of CEO Change and Financial Distress on Earnings Management in Insurance Companies Listed on the IDX for the 2013-2022 Period

Corporate Social Responsibility Disclosure and Financial Performance of Listed Insurance Firms in Nigeria

The backdrop of contending views that CSR is merely façade, just a marketing campaign, and that CSR disclosures among insurance companies in Nigeria are very scanty; whereas organizations desire to be seen as legitimate corporate citizens satisfying various stakeholders, justify this study to examine the relationship between corporate social responsibility disclosure and financial performance of listed insurance companies in Nigeria. Based on the ex-post-facto research design, this study employed secondary data obtained from published financial statements of sampled seven insurance firms between 2015 and 2022. These seven insurance companies are all currently listed in Nigerian Exchange Group. The data gathered was analysed using simple linear regression technique based on the ordinary least square method assisted by E-Views version 9. Three hypotheses were formulated and tested at 0.05 level of significance based on the specific study objectives, using the results of analysis. The findings revealed that corporate social responsibility disclosures have statistically positive significant relationship with earnings per share, net profit margin, and return on assets of listed insurance firms in Nigeria. It was recommended that the management of insurance companies should adopt policies that would favour appropriate increase in corporate social responsibility to enhance performance and peaceful coexistence with their host communities.

Presenting the Model of Acceptance and Use of Insurance Technologies Using the ISM-DEMATEL Method

This research sought to study and examine the model of acceptance and use of insurance technologies using the ISM-DEMATEL method. According to the purpose and nature of this research, in terms of method, it was a qualitative research that was conducted by interviewing research experts. The statistical population was university professors in the field of insurance and senior managers of insurance companies, beneficiaries and policyholders. In this section, sampling was done theoretically. In theoretical sampling, events are sampled, not necessarily individuals. If people are also referred to, the main and key goal is to explore events. The interviews continued until theoretical saturation was ensured. In this study, saturation happened with 12 experts (university professors in the field of insurance and senior managers of insurance companies, beneficiaries and policy holders). The results showed that based on the research findings, it can be seen that the first level includes practical factors, knowledge management, infrastructure, behavioral factors, the second level includes managerial factors, and the third level includes technology perception. Based on the findings, it can be seen that practical factors, knowledge management, infrastructure, behavioral factors are connected factors, managerial factors are autonomous factors, and technology perception is an influencing factor. DOI: https://doi.org/10.52783/pst.273

Criminal Law Enforcement in The Financial Services Sector in Case of Insurance Companies That Have Defaulted

At this time, many cases of insurance companies have defaulted so that policyholders have difficulty getting compensation payments when an uncertain event occurs. Moreover, this default case occurs in large insurance companies which makes public trust in insurance companies reduced. Of these various cases, one of the causes is the weak supervision and law enforcement in the financial services sector carried out by the Financial Services Authority (OJK). The purpose of this study is to analyze the enforcement of criminal acts in the financial services sector in the case of insurance companies that have defaulted. This research is normative juridical research that examines positive legal norms that apply in the form of laws and regulations regarding criminal acts in the financial services sector. This research is expected to provide input to OJK to immediately make improvements to the legal structure and legal culture in criminal law enforcement in the financial services sector to protect policyholders, create a healthy insurance company, and restore public trust in the insurance industry in Indonesia. In normative juridical research, the data studied are only secondary data that include primary, secondary, and tertiary legal materials. The results showed that law enforcement of criminal acts in the financial services sector in the case of insurance companies that defaulted could not be optimal due to the limited number of OJK investigator personnel, lack of knowledge and technical skills regarding criminal investigations in the financial services sector, lack of facilities, infrastructure, and funds, as well as low legal culture from insurance company managers, OJK investigators, and the public.

A Brief Discussion on Reputation Risk and Management of Insurance Company

The reputation of insurance companies plays a crucial role in building consumer trust, thus affecting consumers' purchase intention to buy insurance products and services. Insurance companies with a good reputation will have higher customer loyalty and more easily stimulate consumers' potential insurance demand. This paper will study the factors that affect the reputation risk of insurance companies. The quality of the staff, the level of enterprise management, corporate charisma, financial indicators, and media coverage are 5 factors that affect the reputation risk of insurance companies. It is of great significance for insurance companies to strengthen reputation risk management, avoid and control reputation crisis events, and incorporate reputation risk into their comprehensive risk management system. Therefore, this paper proposes some suggestions for strengthening the reputation risk management of insurance companies. First, the awareness of the reputational risk of insurance companies should be improved; Second, improve the quality of insurance products and services; Third, establish an effective reputational risk management mechanism for insurance companies; Finally, improve the information disclosure system of insurance companies.

Management Style and Employee Turnover in the Insurance Industry in Kenya

Purpose: To establish the influence of management style on employee turnover in the insurance industry in Kenya
 Methodology: The study applied descriptive explanatory research design. The target population was 404 senior staff drawn from 48 insurance companies in Kenya. The sample size for this study was 197 respondents determined using Krejcie and Morgan sample size determination formula. Stratified random sampling technique was used to select 197 managers. The study collected both primary and secondary data where questionnaires were used to collect primary data. The study carried out both descriptive and inferential analyses. Results from analysed data were presented in tables.
 Results: The results obtained from correlation analysis revealed a negative significant correlation between management style on employee turnover in the insurance industry in Kenya at p<0.05. The findings show that management style and employee turnover in the insurance industry in Kenya had a strong negative and significant relationship (r= -0.574, p<0.05). The relationship was considered significant since the p-value (0.000) was less than the selected level of significance (0.05). The model summary results show that the R-squared is 0.733 which suggests that 73.3% of all variation in employee turnover in the insurance industry in Kenya are explained by changes in management style.
 Unique contribution to theory, practice and policy: Maslow's (1943), hierarchy of needs theory used in this study may be used to anchor future studies on describing how employees' needs are placed into five progressive categories, beginning with basic physical needs and progressing up to needs for personal growth. The study recommends that the management of insurance companies should always involve staff in making organizations decisions and programs and ensures getting their approval in important matters before going ahead. According to the study, policy makers should formulate policies that will ensure that insurance companies embrace appropriate management styles.

Work Environment and Employee Turnover in the Insurance Industry in Kenya

Purpose: The purpose of this study was to determine the influence of work environment on employee turnover in the insurance industry in Kenya.
 Methodology: Descriptive explanatory research design was applied by the study. The study target population was 404 senior staff working in the 48 insurance companies in Kenya. Based on Krejcie and Morgan sample size determination formula the sample size for this study was 197 respondents. The 197 managers were chosen with the help of stratified random sampling technique. Primary and secondary data was collected where questionnaires were used to collect primary data. The study used SPSS version 25 software to analyse the data. Both descriptive and inferential analyses were carried out. Results from analysed data were presented in tables.
 Results: The inferential statistics results revealed a negative significant relationship between work environment on employee turnover in the insurance industry in Kenya at p<0.05. Work environment on employee turnover in the insurance industry had a Pearson’s correlation of (r= -.769, p<0.05). Since the p-value (0.023) was less than the selected level of significance (0.05), the relationship was considered significant. This therefore suggests that work environment affects employee turnover in the insurance industry in Kenya. The R-squared for the relationship between work environment and employee turnover in the insurance industry in Kenya was 0.404; this is an indication that at 95% confidence interval, 40.4% variation in employee turnover in the insurance industry in Kenya can be attributed to changes in work environment. However, the remaining 59.6% variation in employee turnover in the insurance industry in Kenya suggests that there are other factors other than work environment that explain employee turnover in the insurance industry in Kenya. 
 Unique Contribution to Theory, Practice and Policy: Theory Z used in this study may be used to anchor future studies on describing how providing a job for life with a strong focus on the well-being of the employee, both on and off the job increases employee loyalty to the company. The study recommends that the management of insurance companies should always build a conducive work environment through emphasis on goals. Create a harmonious non-physical work environment and pay attention to the physical work environment of employees at work. According to the study, policy makers should formulate policies that will ensure that insurance companies build a work environment that attracts, retain and motivate its employees so that to help them work comfortable and increase organization productivity.

Audit committee characteristics and earning management of insurance companies in Ethiopia

Audit committee characteristics and earning management of insurance companies in Ethiopia

Integration of European legislative practices in risk management and solvency in the domestic insurance industry

The insurance industry of Ukraine is on the verge of significant changes associated with the integration processes into the European legal framework. It has been identified that the adaptation of domestic insurance legislation to EU Directives requires insurers to form solvency capital, taking into account the minimum capital requirements, and implement a risk-oriented approach in managing their activities. It is noted that there is a need for a gradual implementation of the legislative norms of the European Union presented in the Solvency II Directive into the domestic legislation. This is because the Ukrainian insurance sector is in a turbulent state, primarily associated with military risks, and the key uncertainty currently lies in the liabilities of insurers. The paper employs methods such as analysis, comparison, logical inference formation, and generalization based on the materials of studies by domestic and foreign scholars, as well as legislative norms. These methods are used to investigate the main legislative requirements for risk and capital management in insurance companies. Differences in the sizes of the minimum required capital for domestic and foreign companies are identified, and recommendations are provided to reduce the review periods of its absolute regulatory values defined by Ukrainian legislation, taking into account new risks. The necessity of gradually introducing European legislative innovations is substantiated, considering the peculiarities of the domestic insurance market. This is because the provisions of the Solvency II Directive impose heightened requirements on the capitalization of insurers to cover risks. A conclusion is drawn that the implementation of a risk-oriented approach will not only allow for a prompt response to identified risks but also ensure commitments to clients and enhance the financial stability of insurance companies in Ukraine. The transformation of Ukrainian insurance legislation into the European legislative field provides many positive aspects for domestic insurers to conduct their activities on an efficient, risk-free, fair and stable insurance market.