Private Life Insurance Research Articles

Directions of change in corporate fringe benefits

Purpose - The purpose of the article is to show the directions of changes in the area of the most popular and most desirable benefits. The types and functions of non-wage benefits are presented, granted to employees by enterprises in order to increase motivation and involvement in the performance of their tasks. Companies make use of a vast range of non-wage benefits of different impact. Research methodology - The article uses critical analysis of the reference materials and analysis of empirical data obtained as a result of surveys conducted each year by Sedlak &Sedlak. Results - The analysis of survey data showed that the most popular benefits are: primary and special health care, professional training and courses, gym and fitness club passes, use of business phone for private purposes and life insurance. While the most desirable additional benefits among employees include an extended medical package, a company car for private use and flexible working hours. Originality/Value - Recognising the most popular and most desirable benefits makes it easier for enterprises to select them, particularly since the employees’ preferences change over time. This is extremely important for companies because benefits allow them to improve employees’ commitment and increase their motivation to work. The Y generation is entering the labour market and employers must consider their expectations when designing benefit packages.

Determination of factors affecting profitability: An investigation into the Indian life insurance industry

The present research aims to identify the key determinants that influence the financial performance of Indian insurers operating in the life insurance space. The empirical study that covers the period from 2007 to 2016 uses data collected on top ten private life insurers (chosen on the basis of average of last three years’ premium collection). The performance analysis aims to identify the key factors that have an effect on return on asset, the dependent variable. The application of panel regression gives interesting results. The results show the significant influence of operating ratio, claims ratio and tangibility ratio. While the effect of the first and third ratio is negative, the operating ratio shows a positive effect. The detailed explanation is there in the main text. The other variables like liquidity ratio, size and age have an insignificant effect on the insurers’ performance.

Buying Factors of Life Insurance Policies in Bangladesh

This paper attempts to identify the factors responsible for buying life insurance policies by the people of Bangladesh. The purpose of the paper could be attributed by the very low per capita life insurance policy, which is lower in compared to other developing countries of the world. To conduct the study, 300 persons were surveyed from the insurance policyholders, insurance officials, insurance agents, and insurance experts. The policyholders were selected from government and non-government life insurance companies. Among them, the only government life insurance company named Jibon Bima Corporation and three leading private life insurance companies including Delta Life, National Life, and American Life Insurance Companies were included in the survey. These 4 life companies occupy about 80% of the total life insurance market. To analyze data, both descriptive and inferential statistical tools were used. This study identified buying factors using Multivariate Analytical Technique such as, Factor Analysis. The results show that there are 14 buying factors responsible for not buying life insurance policies by the people of Bangladesh. The most important factor is difficulty in continuation of insurance policy in the long run. The reason is attributed by the financial insolvency of the people. The second important buying factor is 'after maturity service' followed by general belief of the people, family plan, controversial idea, government policy, behavior of the insurance agents, awareness of the people, income of the household, attachment with insurance, peer group influence, occupational risk, age of the potential insured, and lack of insurance information. The financial inability may not be changed overnight, however, the after maturity services could be improved by the life insurance companies. The major concern of the life insurance policyholders is related to the claim settlement procedures of the insurer companies. Most often the policyholders have to take pains to get back insured amount from the company. The insurance company should extend their best possible services from the starting of the policy till to the maturity and settlement of the claims.

A principal component model for forecasting age- and sex-specific survival probabilities in Western Europe

The assessment of future mortality is of high importance in many areas where the allocation of future resources has to be planned in time, especially in social security and private life insurance. This contribution represents an extension of the classic forecasting approaches of Bell–Monsell and Lee–Carter. Based on a forecast of the first two principal components, age- and sex-specific survival probabilities for 18 Western European countries are predicted simultaneously until the year 2070. In addition to the correlations in the mortality trends between the age groups and the genders, international trends in mortality are captured as well. A major improvement in the classic Lee–Carter models is the adequate quantification of the uncertainty associated with the whole system of variables by stochastic simulation of all remaining principal components with simple time series models. The model’s easy applicability to further analyses is illustrated by forecasting the median life span as well as the resulting Gender Gap for Germany, France, and Italy.

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

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

An Overview of Insurance Services in Nepal

The present scenario of micro (finance and insurance) seems a lot of uncertainty. Naturally uncertainty gives birth to risk. Therefore, the need for risk-management solutions is undisputed by policy makers, who are aware that poor families can lose - in a matter of hours - assets that took years to accumulate, due to a sudden sickness or accident. The policy to provide free primary care and to a certain degree secondary care is positive step and could effectively help to reduce financial exposure of Nepal’s poor when the policy is implemented and functional on large scale. But even if this would succeed, only a part of the vulnerability is reduced: the poor still have to pay for services not covered under this policy, such as certain hospitalization cases, the transportation to health care providers, wage-loss – to name a few. The poor households currently need to finance huge amounts of health expenses (out of pocket expenditure) which are over and above their current income(s) and savings. They therefore need to resort to multiple sources of financing, of which a major source is borrowing.At present, there are 25 registered insurance companies in Nepal. Of these, 8 are private commercial life insurers, 16 are private commercial non-life insurers and 1 is composite insurer, i.e., Rastriya Beema Sansthan owned by the government.Janapriya Journal of Interdisciplinary StudiesVol. 2, No.1 (December 2013), page: 12-20

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

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

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

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

A STUDY ON SERVICE QUALITY PERCEPTION OF POLICYHOLDERS ABOUT PRIVATE LIFE INSURANCE COMPANIES IN TIRUNELVELI DISTRICT

Insurance sector plays a very important role in the development of any economy also, as it provides long term funds for infrastructure development and at the same time strengthens the risk taking ability. The current scenario in the insurance industry is a complex and competitive environment tinged with little stability. With the liberalization and globlisation in insurance, service quality has become an important means of differentiation and path to achieve business success. Such differentiation based on service quality can be a key source of competitiveness for insurance companies and hence have implication for leadership in such organizations. With the increasing demands of customer, insurance sector has become competitive. The purpose of the present study is to measure the service quality perception of customers about Private Life Insurance Companies.

Human Resource Development Practices: A Study of Public and Private Life Insurance Companies

Human Resource Development Practices: A Study of Public and Private Life Insurance Companies

Applying spectral biclustering to mortality data

We apply spectral biclustering to mortality datasets in order to capture three relevant aspects: the period, the age and the cohort effects, as their knowledge is a key factor in understanding actuarial liabilities of private life insurance companies, pension funds as well as national pension systems. While standard techniques generally fail to capture the cohort effect, on the contrary, biclustering methods seem particularly suitable for this aim. We run an exploratory analysis on the mortality data of Italy, with ages representing genes, and years as conditions: by comparison between conventional hierarchical clustering and spectral biclustering, we observe that the latter offers more meaningful results.

Growth of Indian Life Insurance Density and Penetration

The Government of India nationalized insurance industry in 1956 on 19th Januaryleading to the amalgamation of154 Indian, 16 non-Indian Insurers and 75 provident societies, in total 245 Indian and foreign insurers, to form the Life Insurance Corporation of India. The Life Insurance Corporation of India, a public sector corporation, enjoyeda monopoly in the business for four decades until the entry of private life insurers with foreign joint ventures having 26% Foreign Direct Investment(FDI).As per one of the major recommendations of Sri R N Malhotra committee, on 19th April 2000, Insurance Regulatory and Development Authority was set up by the Government of India through the passing of an act of the Parliament. The IRDA aimed to promote insurance and protect the insured. Since its formation, the IRDA has been proving itself successful in promoting orderly growth and development in Indian Insurance sector. This study is an attempt to study life insurance density and penetration in Indian life Insurance industry toassess the growth in theexpansion of life insurance business in India. An analysisis made, and some conclusions are drawn with the help of growth percentages and trend calculations

A Study on the Profitability Analysis of Private Life Insurers: A Comparative Study of ICICI Prudential Life and HDFC Life

A Study on the Profitability Analysis of Private Life Insurers: A Comparative Study of ICICI Prudential Life and HDFC Life

Business Performance of Private Life Insurance Players in India

Business Performance of Private Life Insurance Players in India

Economic Analysis of Social Security Survivors Benefits

This paper develops a lifecycle model with a warm glow bequest motive to analyze social security survivors benefits for depend children (SBDC). The model features differential mortality by income group and price discrimination in the private life insurance market. The model parametrizes the bequest motive to match actual life insurance holdings, and identifies several preference attributes that lead male agents to leave insufficient bequests to support survivors. The model finds that removing SBDC harms both agents and surviving widows with dependent children, and that either allocating more benefits to young agents or expanding the size of SBDC is welfare improving.

Business Analysis of Competing Insurance Tie-Ups for a Bank-An Action Research

The phenomenal growth of Private Life Insurers within a short period owes much to the diversified channel they have used for selling policies. The bancassurance channel was the major one the insurers exploited when they started operations in India. The period 2005-2010 was marked (or is it marred) by tie-up frenzy in the Insurance space wherein insurers were head over heels looking for bancassurance partners. The paper examines a Business analysis proposition of one such banker looking for a new suitor in insurance for a possible tie-up, by going back in time by a few years. Further, the paper examines and explains the mine-field of parameters to be looked into even to short-list a few insurers and match it, by analytically codifying it. The difficulty to do an equivalency chart of comparison and then to decide is explained thread-bare, which is a challenge for any business analyst. Needless to say the setting of the insurance industry, the practices that prevailed then and the short-termism of the interest groups is captured vividly. How such decisions unfolded in the macro scene in the form of 'unit-linked insurance plan (ULIP) fiasco' which is the largest rip-off in the financial services sector history of the country is clearly captured in the paper. The evaluation of the Insurance tie-ups and how the short-term commercial considerations played out in the macro scene in the form of a 'catastrophe' of a mis-selling scam, has high relevance and learning for Regulators and Public Finance/Policy experts. In short, a learning on how to smell 'rat'.

Mainstreaming Micro-Insurance Schemes: Role of Insurance Companies in Nepal

<p>Micro-insurance refers to the relatively short term insurances meant for health, accident, crop and livestock policies. The beneficiaries are the rural people who are mostly involved in agriculture which is subject to different external shocks. Along with agro insurance, the regulator is also encouraging insurance companies to insure micro enterprises such as water mills, tea shops, rickshaws and vending carts. The poor households currently need to incur huge amounts of health expenses which are over and above their current income(s) and savings and therefore, need to resort to multiple sources of financing, of which a major source is borrowing. At present, there are 25 registered insurance companies in Nepal. Of these, 8 are private commercial life insurers, 16 are private commercial non-life insurers and 1 is composite insurer. There is no scientific calculation of the crop’s yield and of livestock, which will create ambiguity in the valuation of the property being insured. </p><p><strong>Economic Literature,</strong> Vol. XI (40-46), June 2013 </p>

Effects of Pecuniary Benefits in Curbing Employee Turnover Intention Special Reference to Private Life Insurance Companies in Chennai

Background: Pay is an endless paradox in many business organizations, there is always a type of financial expectation gap exist among the human resources of all organizations. Despite remarkable attempts have been taken to arrest these issues, as a result of inflationary effect, life style changes, increase in cost of living etc., debilitates it further. Methods: Self administrated questionnaire was used to collect the response and samples were collected from employees of private life insurance companies. 1531 questionnaires were distributed among employees of private life insurance companies in Chennai region. There are 933 valid response were taken for the analysis. Ancova and multiple regressions were used to analyze the test results. Findings: The study results demonstrate that there is a significant relationship exists between employee motivation level and monetary benefits offered to them. Hence organizations can design their compensations including the monetary benefits offered to them keeping in mind it has impact in the intention to leave the organization. Applications/ Improvements: Can be used to motivate the employees and mitigate employee’s turnover intention, to reduce the employment cost, etc.

USAGE PATTERN OF THE PRIVATE LIFE INSURANCE CUSTOMERS

Due to the effect of the several factors of the globalization, customers’ socio-economic culture has already been changed and customers become very much conscious about their needs and requirements in the present society. Over time the usage pattern of the customers with their service providers in their daily life varies culture wise, nation wise, sector wise as well as industry wise and this one is no exception in the life insurance sector. Considering all the private life insurance companies operating their business in Burdwan district, West Bengal, researcher in the present perspective conducted a study on the usage pattern of the private life insurance customers at here. In this study, 661 usable responses of the private life insurance customers were considered as the sample size. The statistical package SPSS 16 was also used to perform the analyses.

SERVQUAL Gaps-An Explorative Study on Public and Private Life Insurance Companies

This study was designed as exploratory as well as descriptive. SERVQUAL analysis is considered to be the paramount process to find out Service Quality gaps in the services being rendered by the insurance companies. In this study, the SERVQUAL gaps in respect to Life Insurance Company of India-LIC (a public enterprise) and Private Life Insurance Companies (PLICs) in Ramanathapuram district are compared. Widely known SERVQUAL model developed by Parasuraman et.al., (1988) was taken as base to construct the questionnaire. Six SERVQUAL dimensions namely, Tangibles, Reliability, Responsiveness, Empathy, Individualized Attention and Performance were identified by grouping twenty four predicator variables (given as statements) by employing confirmatory factor analysis. Wide SERVQUAL gaps were identified between LIC and PLICs.