Management Of Insurance Companies Research Articles

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.

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.

Identifying, Prioritizing, and Assessing Factors Influencing Customer Satisfaction Covered by Supplemental Insurance: A Mixed-Method Study

Background: With increasing specialization in various sectors of the market environment, it has become essential to identify customer satisfaction indicators and prioritize them to enhance the provision of supplementary health insurance services. Objectives: This study aimed to identify, prioritize, and assess satisfaction indicators among individuals covered by supplemental insurance. Methods: This exploratory mixed-method study involved 20 participants, including university faculty members, managers, and insurance experts in Khuzestan province. In the qualitative phase, a scoping review of relevant literature was initially conducted using electronic databases such as Scopus and Web of Science to extract key axes. Subsequently, in two stages of fuzzy Delphi, relevant indicators were extracted and then prioritized by a panel of experts using the fuzzy AHP method. Results: A total of 33 articles were retrieved through the database search. Following semi-structured interviews, 11 indicators were identified, including premium, insurance obligations limit, timely payment of expenses, provision of online services, respectful treatment, reasonableness of required documents, waiting period, complaint handling, franchising information, and discrimination in service provision. Among these factors, the premium had the highest priority, with a final weight of 0.190. Conclusions: The results highlight the significance of premium as the most influential factor in the study. Therefore, insurance company managers should focus on increasing insured individuals' satisfaction and enhancing their companies' overall perception.

Does intellectual capital efficiency measured by modified value-added intellectual coefficient affect the financial performance of insurance companies in Ethiopia?

Insurance company managers and shareholders should be conscious of the effect of intellectual capital efficiency and its components on financial performance. The purpose of this study is to examine the role of intellectual capital efficiency and its components on the financial performance of insurance companies. To achieve study objectives Modified value-added intellectual coefficient is adopted to measure the effect of intellectual capital efficiency. The study adopted an explanatory research design with an arrangement of secondary data analysis via document analysis, quantitative approach, and deductive method of inquiry. Panel data was used with a sample of 14 insurance companies from 2012-2022. Descriptive and regression analyses were performed to analyze the data using STATA version 15.0. Econometric model estimation procedures and multiple regression assumptions were tested accordingly. The random effect regression result revealed that the value-added intellectual capital and its component human capital and capital employed efficiency have a positive significance association with financial performance. Whereas, relational capital efficiency and structural capital efficiency do not have a significant contribution to the financial performance of insurance sectors in Ethiopia. The findings of this study contribute to the theoretical and practical understanding of the relationship between intellectual capital efficiency and financial performance in the context of insurance companies in Ethiopia.

Legal Culture in the Management of Life Insurance Companies in Indonesia

In the last ten years, people have been made uneasy by various cases of life insurance companies that have failed to pay. Moreover, the involvement of prominent companies in these cases reduced public trust in them. In these cases, the influence of legal culture is apparent in the management of life insurance companies. Therefore, this study aims to investigate the factors that caused the life insurance companies to fail to pay, the legal culture underlying the management of these companies and the efforts that must be made to improve this culture. The research method employs normative legal research, supported by empirical legal research. The factors causing life insurance companies to default consist of fraud in the company’s financial statements, unreasonably high-interest rates on unit-linked insurance products, and a lack of optimal application of risk management in life insurance companies. The legal culture of their management has not developed in a better direction, leading to an inability to fulfill their obligations. Examples of steps to improve the legal culture include conducting education and training for life insurance company managers, making remuneration policies to encourage behavior that follows the prudential principle, and creating guidelines for managers on ethical business values and conduct.
 Keywords: legal culture, life insurance companies

COVID-19 pandemic and firm performance in the insurance industry in developed and emerging markets

This study aims to analyze the impact of the COVID-19 pandemic on insurance companies` performance. Data spanning 2018 to 2022 from the Wall Street Journal Database was employed, encompassing 1,931 companies across 65 countries. The research distinguishes between developed (808 insurers) and emerging markets (1,123 insurers) to identify more real consequences of the pandemic. The random effects model was utilized for regressions, which run in three stages. The dependent variables (Return on Assets and Return on Equity) and the independent variables (the COVID-19 pandemic and four firm-specific factors such as claim expenses, company size, leverage, and liquidity) were analyzed. In developed markets, the study confirms the significant negative consequences of the COVID-19 pandemic on insurance firms, resulting in a global decline in performance. Conversely, emerging markets reveal a different scenario where company size plays a substantial role in insurance company performance, particularly in return on assets, aligning with findings favoring larger insurance entities. However, when considering company size’s interaction with COVID-19, larger insurers in emerging markets experienced performance declines during the pandemic. While leverage significantly affects insurance firm performance in both market types, its interaction with the pandemic shows no substantial impact. Liquidity, as represented by cash holding does not significantly enhance performance, particularly in developed markets, but higher cash reserves during the pandemic negatively affect performance, primarily in emerging markets. These findings provide insights for insurance company managers to develop adaptive strategies amid evolving market conditions and potential crises, including pandemics like COVID-19.

Fair Value Measurement and Financial Reporting Quality of Insurance Business in Lagos State

The financial reporting qualities provides objective information that is useful to analysts in evaluating the financial soundness and prospect of a company. This paper attempts to examine the concept of fair value measurement as well as determine its influence on the financial reporting quality of items in the financial statement of insurance companies. The study uses survey method and questionnaire as research instrument to elicit data from professional accountants in selected listed insurance companies in Lagos state, using conveniency sampling technique. The data collected were analyzed with the aid of SPSS. The study reveals that there is significant relationship between fair value measurement and the financial reporting quality and that the fair value measurement has significant influence on financial reporting quality at each level of the hierarchies. The study, therefore, concludes that the observance of the financial reporting qualities in the process of the fair value measurement would facilitate the production of corporate financial report useful to analysts in assessing a company’s performance and prospects. It, therefore, recommended that the professionals in the insurance industry should observe the qualities of financial reporting while preparing financial reports and during the process of fair value measurement. Also, it recommended that the management of insurance companies should engage valuation experts and professionals for objectivity and soundness in fair value measurement. This will lend credibility to the financial report.

Does Corporate Diversification Influence Market Share? Evidence from Kenyan Insurance Sector

Insurance industry is among the large investors in the financial markets that play a key role of stabilizing financial systems. The industry acts as a growing link between insurers and other financial intermediaries by safeguarding the financial security of households and firms through insurance of risks, provision of long -term capital and overall stability of an economy. Global corporate failure has not spared the insurance industry at regional and local levels which has triggered insurance companies to opt for diversification to expand their markets, enhance returns and survival. This study examines corporate diversification-market share link in the Kenyan insurance sector. The study employs entropy index to measure corporate diversification, and market share as indicator for performance. The study is anchored on modern portfolio theory and supported theory of organizational effectiveness. The target population comprises fifty-six insurance firms in Kenya. Secondary data was collected from published account and company accounts filled at the insurance regulatory authority. Market share was computed as the percentage of gross written premium (GWP) for each company in relation to total industry GWP between the years 2016 and 2020. This study adopted a descriptive research design. Preliminary statistical tests undertaken include descriptive statistics such as the mean, standard deviation, skewness and kurtosis. Correlation analysis was done to test the direction of the relationships while regression analysis was used to test the hypotheses. The study findings established that corporate diversification has a significant influence on market share. From the empirical findings of this study, companies that have ventured into more lines of business have reported higher entropy index than those with fewer lines of products and perform well thus managers of insurance companies should focus on creation and selling more appealing products and improve on penetration to the large untapped market. Future research can be extended to contexts within the developing economies category and other financial service sectors and non-financial sectors by evaluating the diversification index that is well suited to them that would provide more insights into the relationships.

Claims Management and Firm Performance of Insurance Companies in Nigeria: Moderating Effect of Marketing Factors

The study aims to analyse the effect of claims management on firm performance of insurance companies through marketing factors. The data was collected from 776 of management, senior and junior (frontline) staff of selected Insurance companies in Lagos State using a questionnaire as a data collection tool. This research uses a quantitative approach with a survey method. Respondents were selected from the the 20 registered insurance companies across composite, general and life Insurance businesses in Lagos State through a stratified ransom sampling technique. The collected data were analysed using hierarchical regression analysis (HRA) to test hypothesis and evaluates the regression model specified. The collected data were analysed using hierarchical regression analysis (HRA) to test hypothesis and evaluates the regression model specified. The findings indicates that marketing factors significantly moderated the effect of claims management practices on firm performance of selected Insurance Companies (β = -0.009, R2∆ = 0.002; F∆ = 17.928, p < 0.05). The study concludes that marketing factors moderated the effect of claims management practices on firm performance of selected Insurance Companies in Lagos State. The study therefore recommends that the management of selected insurance companies in Lagos State focus on creating a positive marketing factor that bolsters claims management practices to achieve a sustainable performance in the industry. This may involve developing marketing policies and training that encourage employee involvement, job satisfaction, and a positive working environment.

The Influence of Foreign Insurance Affiliates, Market Share, Own Retention Ratio, Claims Ratio and Cost Ratio on the Performance of General Insurance Companies in Indonesia

This study examines the effect of foreign insurance affiliation, market share, own retention ratio, claims ratio and expense ratio on the performance of general insurance companies in Indonesia. The performance of insurance companies in this study uses a measure of return on equity (ROE). The research population is all general insurance companies in Indonesia operating in 2018-2021. The research sample is 177 insurance companies in that period. Data collection uses financial reports submitted by insurance companies to the Financial Services Authority. Furthermore, to perform data analysis, multiple linear regression through the use of SPSS software as a tool is used in this study.
 The results show that foreign affiliation and own retention ratio have a positive impact on insurance company ROE. Meanwhile, market share, claims ratio, and expense ratio have a negative effect on ROE. Taken together, foreign affiliate, market share, own retention ratio, claims ratio and expense ratio affect ROE. The results of this study can provide an overview to regulators in regulating foreign ownership in the insurance industry in Indonesia as well as regulations regarding self-retention. For shareholders and management of insurance companies, this research can provide an overview of foreign cooperation policies and reinsurance policies associated with the risk profile of insurance business lines in Indonesia, fee policies, underwriting and claim handling.

Pengaruh Good Corporate Governance dan Kebijakan Hutang Terhadap Manajemen Laba dengan Kinerja Keuangan sebagai Variabel Moderasi

In this study, financial performance is calculated using ROA, good corporate governance (GCG) is measured using the number of commissioners, debt policy is calculated using DER, and profit management is measured using discretionary accrual (DA). Secondary data was used in this study in the form of financial reports. The targeted sampling method used in the sample survey included 60 companies as a research sample, but the criteria included 18 companies. Multiple regression analysis (MRA) using SPSS version 20 The results showed that GCG has a significant positive effect, debt policy (DER) has a positive effect, financial performance (ROA) has a negative effect, and financial performance, which GCG moderates, has a negative impact on revenue management. Financial performance encoded by DER positively impacts revenue management in insurance companies listed on the Indonesian Stock Exchange (IDX) for the period 2017–2021.