Providing Insurance Services Research Articles

The development of organizational, legal and ideological formation of the institutions providing insurance services

The article considers the nature of insurance services and a variety of organizational and legal forms of institutions that provide these services. A new formulation for mutual insurance societies is suggested, taking into account existing forms of such institutions in various countries. It is brought to light that insurance business developed from reciprocal needs, or reciprocity. Later on insurance became a financial service aimed at meeting the needs of one party and receiving financial gain by another party. Particular attention is paid to forms of exercising insurance at an emerging stage of the market of insurance services.The principle of reciprocity is highlighted, and its general framework is described. Reciprocity is defined as a basis for promotional and reciprocal insurance. It is proposed to divide institutions according to ownership property into joint-stock partnerships and mutual insurance societies. Their advantages, disadvantages and special features in various countries are specified. A special focus is given to reciprocity which is based on consolidation of customers and their risks.It is concluded that insurance companies in the form of joint-stock partnerships have one more target for activities, which is making profits for stockholders. Furthermore, the research paper describes organizational and legal forms of institutions that can provide insurance services in the EU countries and Ukraine, as well as types of joint-stock partnerships in these countries.A comparative analysis of requirements for the authorized capital of institutions providing insurance services in Ukraine and the EU is carried out. It is found that in many countries these requirements are differentiated for mutual insurance societies and joint-stock insurance companies.In contrast to liberalized access of insurance services to markets in different countries, requirements for financial stability and for size of insurance companies have been steadily tightening. This stimulated the consolidation of both joint-stock insurance companies, particularly in Ukraine, and mutual insurance societies in European countries.It is emphasized that requirements for the amount of authorized capital and stability of an insurance institution are indirectly interdependent.

THE RISK OF TRANSFER OF GENES IN THE INSURANCE PROTECTION OF AGRICULTURAL PRODUCERS

The paper deals with the risk of transfer of genes, its impact, and possible consequences for agricultural producers; the possibility of creating an insurance service, to address this risk. The purpose of the paper is to disclose the results of a study of the risk of transfer of genes in agriculture when organizing insurance coverage. The tasks of this paper are: to clarify the essence of genetic engineering as an object of providing insurance services; to define the concept of risk of transfer of genes, its specific features, impact, and possible consequences for agricultural producers; carry out a description of the possibility of creating an insurance service about the risk of transfer of genes. The object of the study is the risk of transfer of genes in insurance protection. The subject of the study is theoretical and methodological approaches to optimizing the risk of transfer of genes in insurance protection. Methodology. This work requires attracting a large number of scientists from different fields. Legal Aspects covered in the EU Regulation Terms №1829/2003 and 1830/2003 of the European Parliament and Council. A considerable attention to the legislative regulation of genetic engineering and risks in the use of genetic modification is given to the Cartagena Protocol on Biosafety. It should be noted that at present, economic literature and especially publications related to agricultural insurance protection do not pay attention to the risks associated with the transfer of transgenic organisms and the possibility of taking this risk to insurance. The work uses the experience of the US Department of Agriculture and the European Center for Insurance Legislation. The results of the study showed that the introduction of the insurance mechanism has the main difference in the fact that this operation takes into account as a person who suffered a loss, could get more profit than the fact of causing damage to another farmer. In this regard, the first option of insurance may be the liability insurance of the latter. In any case, the insurance mechanism can combine risks in a large group of enterprises or individual farmers that are prone to it and this group can be expanded by separate provisions or by law. Also, features of coverage of losses from the risk of gene transfer, namely, a separate factor – cross-pollination, are considered.

Customers’ Perception regarding Assurance of Bancassurance Channel

Abstract Bancassurance has evolved as a strong distribution channel in India. Bancassurance means that the insurance company and the bank come together to offer insurance products from the counter of the banks to the bank’s customer. The present study attempts to analyse customers’ perception regarding assurance of bancassurance channel in providing insurance-related services. The study also tries to find out the impact of various demographic variables on customers’ perception regarding assurance of bancassurance channel. The study finds that customers consider bancassurance channel having high assurance in providing insurance services. It is also found in the study that there is no significant association between the demographic variables considered in the study and customers’ perception regarding assurance of bancassurance channel.

Current trends of the assistance development in the insurance market of Ukraine

The main indicators of assistance activity in the insurance market in Ukraine have been analyzed. Beneficial and negative trends of its development have been shown. The dynamics of the insurers' liquidation expenses structure and the payment of services expenses of the assistance establishments have been highlighted. Their structure has been shown due to the types of voluntary and compulsory insurance. The main problems hindering the effective development of the assistance services market have been characterized and the prospects of its development have been offered.The aim of the research is to carry out comprehensive analysis of the current market of assistance services, to identify the main problems of their implementation and to point out the prospects of insurance market development.The dynamics of insurance bonuses and benefits including insurance compensation and services and the insurers' operating expenses concerning the payment of services of the assistance establishments has been analyzed on the basis of a sample survey of the main indicators of insurance market development due to the statistic data of National Committee of Financial Services. It has been revealed that majority of the insurance services provide settlement of insurance claims by offering assistance service. Alongside increasing of the share of insurance payment due to the contract providing the insurance service, allows the majority of insurance claims to be settled due to the payment of insurance compensation.Expenses on assistance services were the highest and the court expenses were the lowest in the structure of the insurer's liquidation expenses during 2011-2014. Expenses on services of the non-residential assistance establishments are low but they are increasing. It shows that emergency assistance to our citizens in the country and outside is being increased.Structure of assistance services in the voluntary and compulsory insurance market has been analyzed; main trends of assistance activity development according to the separate insurance services have been highlighted. In particular it was found out that the greatest amount of assistance services were provided due to the voluntary medical insurance, medical costs insurance, land transport insurance and compulsory insurance of civil liability of the owners of vehicles.On the basis of conducted analysis, we can draw a conclusion about the low level of assistance services market development. It is affected by negative trends of economic and political crisis, low solvency of insurers and the quality of insurance services, a lack of guaranties to provide emergency assistance in time, imperfect state regulation of assistance services provision, and a low level of institutional support. We offer to intensify the interaction between the insurers and assistance companies while providing insurance services including additional ones, insurance compensation, and settlement of insurance claims by ensuring emergency assistance in monetary and natural-material form. This will promote the increasing of quality of the insurance protection.

Review of Marketing and Challenges in the Sale of Insurance

Insurance, financial services for people collecting savings and providing risk cover for them. The main role of insurance against damage-causing events are possible. Insurance concerns and problems caused property damage and mortality caused by the cover. It also provides social insurance funds for the benefit of capital in loss reserves are invested. Insurance is a subset of the services sector and in marketing this service should be paid attention to product quality and customer satisfaction. When marketing services, it is essential that people are thinking about selling the development of innovative measures. Under the Insurance Act, insurance companies, insurance agents and brokers as official dealer network, responsible for providing insurance services to individuals and sectors are. These networks arm as an insurance company executive role in the company's development goals plays . Creativity in the development of standards for selling, need today. Advertising, public

Solidarity and the Market in the Area of Insurance Schemes

Abstract The text provides a detailed analysis of the significance and role of the principle of solidarity in compulsory and supplementary insurance schemes. The analysis is focused on solidarity as the benchmark when deciding on the applicability or non-applicability of the rules on effective competition on the market in the EU. The principle of solidarity is closely linked to the objectives of social policy, which demand special treatment in the intense market arena. The selected interpretations of the Court of Justice of the EU carry great importance, considering the discretion of Member States in the area of social policy. The text provides an elaboration and final remarks concerning the principle of solidarity which is able to shelter (more or less) the provision of insurance services in the EU.

An Investigation of the Internet Effects on Business

In recent years, due to rapid growth of information and communications technology, and most importantly, the expansion and development of internet, the trend of these variations has been accelerated. Electronic is one of these options that many debates are performed concerning the implementation and in particular, its impact on business. In present paper, in addition to defining the electronic insurance, the impact of e-commerce on insurance industry has been discussed. Internet banking has made it easy to carry out the personal or business financial transaction without going to bank and at any suitable time. This facility enables to transfer money to other accounts and checking current balance alongside the status of any financial transaction made in the account. The recent evolution of Information technology in the financial services industry is changing the pace of providing insurance services, not only in India but in the world over. This paper looks at how banks and financial firms can interact with ecommerce. First, banks and financial firms can learn from e-commerce and use the technology and business practice of e-commerce to develop and market their products to the customers. The advent of the internet has revolutionized the way people buy and sell. The internet is characterized by increased access to information. Adaptation of the Internet for commercial purposes in the last decade of the twentieth century has lead to the birth of a new phenomenon: e-commerce.

Hog insurance adoption and suppliers' discrimination

PurposeThis paper explored factors that impact insurance choices of demand (farmers) and supply (insurance companies) side, respectively.Design/methodology/approachSpecially designed survey questions allow one to fully observe the demand tendency from farmers and partially observe the supply tendency from insurance companies. Using bi‐vairate probit model, a joint estimation of insurance decisions of both supply and demand sides suggested that factors perform different roles in affecting insurance participation.FindingsFarmer's age and education have positive impacts on insurance demand, but are indifference to insurance providers. Insurance suppliers care about farmers' experience in the fields when providing insurance services, however, on the demand side, farmers' experience occasionally results in overconfidence and hence, impedes farmers' insurance purchasing. Production scales, proxy by sow inventory, are put more weight by farmers than insurance suppliers when making decisions. Production efficiency measures perform as incentives for farmers to purchase insurance. While suppliers prefer customers who use vaccine, farmers tend to treat vaccine as a substitute for insurance to prevent disease risk.Social implicationsResults from bi‐vairate probit model offer deeper understandings about livestock insurance choices and provide further insights to improve policy design and promote participation.Originality/valueThe study designed a special questionnaire and firstly used bi‐vairate probit model to offer more understandings about demand and supply sides of livestock insurance.

Promoting Efficient Institutions and Providing Insurance Services: A Dual Role for Multilateral Agencies

This paper uses a Costly State Verification model to analyze risk-sharing arrangements between a coalition of countries when there is uncertainty about the realization of a key performance variable. The realization of the performance variable is a country's private information, and the cost of verifying performance differs across countries. The cost of verification reflects the of a country's institution. We characterize the constrained optimal multilateral contract and show that forming a coalition provides complete risk sharing across countries and across states - the total cost of verification of the coalition is shared equally by all countries. This cost sharing feature of the contract generates a negative externality and results in moral hazard. We also show that high verification costs limits the number of countries that can participate in risk sharing and may result in insurance rationing - some countries are excluded from the coalition although they prefer to join. This provides a rationale for the coalition to implement policies that will promote transparency and accountability in member countries. We then analyze a policy that a multilateral agency with limited enforcement powers may use to ameliorate these problems.

Life Insurance Markets in Developing Countries

INTRODUCTION Developing countries are not only consumers but also suppliers of insurance services. In domestic market, the supply of insurance generally consists of services provided by national companies, with local and/or foreign capital, as well as by foreign companies and agencies or branches. Browne and Kim (1993) suggest that number of variables may explain international differences in life insurance demand. They also suggest that number of factors affects the supply of life insurance, although their study considers only the demand side. It is often argued that the development of financial institutions may have significant impact on both the productivity of the economy and the volume of savings. Indeed, so important is insurance in the trade and development matrix that, at its first session in 1964, the United Nations Conference on Trade and Development (UNCTAD) (1964) formally acknowledged that a sound national insurance and reinsurance market is an essential characteristic of economic growth (p. 55). Insurance, like other financial services, has grown in quantitative importance as part of the general development of financial institutions. The governments of many developing countries historically have held the view that the financial systems they inherited could not serve their countries' development needs adequately, so during the past thirty years they have directed considerable efforts to changing the structure of these financial systems and controlling their operations in order to channel savings to investments, which are crucial components of development programs (United Nations Conference on Trade and Development, 1984, 1988). Recent empirical evidence suggests that developing countries have causality pattern of development rather than demand-following pattern (Jung, 1986; Dee, 1986). Many governments have indeed established new financial institutions under what has been termed supply-leading approach to financial development and have considered locally-incorporated insurance institutions or even state-owned monopolies an essential element of their economic and political independence.(1) The protectionism that has developed in most countries should be viewed as decision to internally produce rather than import insurance services. Public enterprises are considered macroeconomic policy tool and, as such, are used by governments to provide not only insurance services but also to achieve social and macroeconomic objectives such as increased employment and foreign exchange reserves. Today, almost all developing countries have local insurance market providing coverage for most domestic risks (United Nations Conference on Trade and Development, 1984, 1988). Protective measures in the provision of insurance services can be classified into three categories: those related to establishment within the host country, access to the domestic market, and insurer operations (Skipper, 1987). The ultimate limitation on the establishment of insurance companies is flat prohibition, the situation that prevails in monopolistic markets. Indeed, monopolistic market technically should not be viewed as unfairly discriminatory against the local establishment of foreign-owned insurer, since it applies equally to all potential domestic establishments. Many governments of developing countries prohibit their nationals from placing insurance in other than locally-licensed and -incorporated insurers. In most instances, regulation is accompanied by localization of requirement that majority, if not the totality, of ownership interests in locally-domiciled insurers must be held by nationals of the country. Insurance requirements stipulate that certain or all lines of insurance must be placed with locally-domiciled insurers (see Table 1). The main objective of this article is to investigate empirically the relationship between life insurance premium income, measure of life insurance development, and the level of financial development and the market structure of insurance institutions in developing countries. …