The relationship between regulation and prices in the workers' compensation insurance market

1995 ◽  
Vol 8 (2) ◽  
pp. 149-166 ◽  
Author(s):  
Anne Carroll ◽  
Robert Kaestner
Keyword(s):  
Insurance Market ◽  
Workers Compensation ◽  
The Relationship

Pricing insurance policies with offsetting relationship

2021 ◽  
pp. 1-27
Author(s):  
Hanbali Hamza
Keyword(s):  
Insurance Market ◽  
Optimal Pricing ◽  
Price Discounts ◽  
Insurance Policies ◽  
Life Data ◽  
Pricing Decision ◽  
Pricing Process ◽  
Pairwise Correlations ◽  
Number Of Customers ◽  
The Relationship

Abstract This paper investigates the benefits of incorporating diversification effects into the pricing process of insurance policies from two different business lines. The paper shows that, for the same risk reduction, insurers pricing policies jointly can have a competitive advantage over those pricing them separately. However, the choice of competitiveness constrains the underwriting flexibility of joint pricers. The paper goes a step further by modelling explicitly the relationship between premiums and the number of customers in each line. Using the total collected premiums as a criterion to compare the competing strategies, the paper provides conditions for the optimal pricing decision based on policyholders’ sensitivity to price discounts. The results are illustrated for a portfolio of annuities and assurances. Further, using non-life data from the Brazilian insurance market, an empirical exploration shows that most pairs satisfy the condition for being priced jointly, even when pairwise correlations are high.

Hospital prices and market structure in the hospital and insurance industries

2010 ◽  
Vol 5 (4) ◽  
pp. 459-479 ◽  
Author(s):  
Asako S. Moriya ◽  
William B. Vogt ◽  
Martin Gaynor
Keyword(s):  
Health Care ◽  
Health Care Services ◽  
Market Concentration ◽  
Insurance Market ◽  
Hospital Services ◽  
Hospital Market ◽  
Market Effects ◽  
Transaction Prices ◽  
Care Services ◽  
The Relationship

AbstractThere has been substantial consolidation among health insurers and hospitals, recently, raising questions about the effects of this consolidation on the exercise of market power. We analyze the relationship between insurer and hospital market concentration and the prices of hospital services. We use a national US dataset containing transaction prices for health care services for over 11 million privately insured Americans. Using three years of panel data, we estimate how insurer and hospital market concentration are related to hospital prices, while controlling for unobserved market effects. We find that increases in insurance market concentration are significantly associated with decreases in hospital prices, whereas increases in hospital concentration are non-significantly associated with increases in prices. A hypothetical merger between two of five equally sized insurers is estimated to decrease hospital prices by 6.7%.

scholarly journals Herd Behavior in the Insurance Market: A Survey

2015 ◽  
Vol 7 (11) ◽  
pp. 154 ◽  
Author(s):  
Fan Liu
Keyword(s):  
Information Sources ◽  
Collective Intelligence ◽  
Insurance Market ◽  
Purchase Decision ◽  
Herd Behavior ◽  
Purchase Decisions ◽  
Decision Making Processes ◽  
Use Of Information Sources ◽  
The Relationship ◽  
Selection Of

We conduct a survey to examine herd behavior in the insurance market. Following prior studies on consumers’ use of information sources in their purchase decision-making processes we develop hypotheses that explore the relationship between selection of information sources and herd behavior among potential insurance buyers in the market. Our results strongly support contentions that insurance buyers are significantly influenced in their choices by recommendations from different information sources and they do use these as herd cues to infer insurance product quality when making their own purchase decisions. In particular, our findings suggest that potential insurance buyers are more likely to be influenced by collective intelligence than by insurance experts.

Limited and Unlimited Workers' Compensation Wage Replacement Benefits and Rehabilitation Outcome

1987 ◽  
Vol 18 (2) ◽  
pp. 3-5 ◽  
Author(s):  
Jan LaForge ◽  
Don K. Harrison
Keyword(s):  
Success Rate ◽  
Rehabilitation Program ◽  
The State ◽  
Workers Compensation ◽  
Rehabilitation Outcome ◽  
The Relationship

This study examined the relationship between the type of Workers' Compensation wage-replacement benefits—time limited and time unlimited—and rehabilitation outcome for 2077 persons who were identified as occupationally disabled in the state/federal rehabilitation program. Clients who received time limited Workers' Compensation benefits (N= 791) returned to work sooner and had a higher rehabilitation success rate than clients who received time unlimited benefits (N = 1286).

scholarly journals ON FORECASTING THE INSURANCE MARKET IN RUSSIA AND IN THE ASTRAKHAN REGION

2018 ◽  
pp. 125-132
Author(s):  
Tatyana Vladimirovna Kotova ◽  
Ekaterina Vladimirovna Sokolova ◽  
Elena Vladimirovna Chernikina
Keyword(s):  
Russian Federation ◽  
Insurance Market ◽  
Insurance Companies ◽  
Positive Tendency ◽  
The Russian Federation ◽  
License Revocation ◽  
Relationship Of ◽  
High Degree ◽  
The Given ◽  
The Relationship

Insurance companies, being one of the most important links in the financial system of the country, make a significant contribution to the development of the national economy. Insufficient stability and a low level of dynamics of insurance development are conditioned by poor capitalization of insurance companies and absence of methodological complex, which would allow to create financial strategy with high degree of efficiency. In the Russian Federation today there are 236 insurance companies, of them 61 are in the Astrakhan region. Every year insurance companies cease their activity due to the license revocation. The study of the insurance market of the Astrakhan region and Russia using modern methods of scientific research, including mathematical models, made it possible to establish the relationship of insurance indicators with GDP and GRP. Studying the developing insurance market allowed to infer about the expediency of using the indicator “depth of the insurance market”. The forecast of this indicator until 2020 was based on the consensus forecast of the Ministry of Economic Development of the Russian Federation. Development of the insurance market and, consequently, the economy of the region and of the country is affected by many factors. The following indicators were considered as factors: dollar rate, price per gram of gold, MICEX index, central rate of the Central Bank of Russia, and the inflation rate. The constructed multifactorial regression model helped to establish the relationship between the volume of insurance premiums of voluntary insurance, the dollar exchange rate and the level of inflation. The given research algorithm can be used in various fields. The worked out forecast of the parameter of depth of insurance market in the Astrakhan region and Russia proved positive tendency in developing regional and Russian insurance market.

scholarly journals Insurance market development and economic growth indicators: the study of relationship in the world

2020 ◽  
Vol 185 (9-10) ◽  
pp. 48-60
Author(s):  
Evgenia Prokopjeva ◽  
◽  
Natalia Kuznetsova ◽  
Svetlana Kalayda ◽  
◽  
...  
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Economic Development ◽  
Life Insurance ◽  
Insurance Market ◽  
Market Development ◽  
Insurance Markets ◽  
Economic Development And Growth ◽  
The Relationship

The relevance of the paper is predetermined by the fact that insurance acts as an institute of financial and social protection, and insurance companies (especially for long-term life insurance) are the most important and socially responsible investors, which account for about 8-12% of total investments in developed countries in the economy, which, in turn, serves as a significant factor in economic growth. The purpose of our paper is to prove the relationship between the level of development and dynamics of insurance markets on the one hand, and the level and dynamics of economic growth rates in a number of countries, on the other. To achieve the goal, we set and solved the research objectives: 1) to determine the degree of elaboration of the problem of the relationship between economic growth and the development of the insurance market in a number of countries and regions of the world economy; 2) to construct a comprehensive classification of similar and different characteristics in certain countries of the worlds’ economy (European, Asian, extended countries with a federal structure, post-socialist countries); 3) to highlight some indicators of the level of economic development and growth of classified countries (central bank interest rate, economic growth rate, investment growth rate, etc.) associated with some parameters of insurance market development, primarily with the volume and growth rate of insurance premiums, including the growth rate of life insurance premiums; 4) to classify the insurance regulation models of the grouped countries based on the analysis of the relationship between the selected economic and insurance indicators; 5) to assess the degree of relationship between the development of a relatively young and unbalanced insurance market and indicators of economic growth in Russia. The latter occupies a special place in the classification of the countries under consideration by characteristics of insurance development, by spatial, geopolitical parameters, by indicators of economic development and economic dynamics. The research results and conclusion are the following: 1) there is a direct relationship between the indicators of economic growth and indicators of the development of the insurance market in national economies and regional integration complexes; 2) different types of grouped countries have a different degree of dependence between indicators of economic growth and the insurance market indicators’ development, which is determined, not least of all, by historical, economic, spatial, geographical and geopolitical characteristics; 3) the close relationship between the indicators of economic development and growth of countries under consideration and their insurance markets is ambiguous, due to the fact that the active growth of insurance is noted in countries with a high density and a significant proportion of the young population; 4) the reasons for similarities and differences in the relationship under study are diverse and determined by differences in functioning of socio-economic systems (geographical, legislative, political, social, etc.), as well as by the adopted model of insurance regulation; 5) the growth of the insurance market corresponds to the general economic growth, subject to the intensification of investment activity; 6) life insurance shows a closer relationship with macroeconomic indicators compared to other segments of the insurance market; 7) the importance of studying the proposed problem for Russia in the future is due to its important integrating function for the national insurance markets of European as well as Asian countries.

scholarly journals Consumer Extremism in the Insurance Market: Problem Statement

2021 ◽  
Vol 31 (3) ◽  
pp. 374-381
Author(s):  
Marina Stepanova
Keyword(s):  
Social Economic ◽  
Insurance Industry ◽  
Legal Aspects ◽  
Insurance Market ◽  
Problem Statement ◽  
Financial Position ◽  
The Relationship

Consumer extremism has recently taken the form of a mass phenomenon, gradually penetrating into the insurance industry. Since it negatively affects not only the reputation and financial position of individual insurers, but also the development of the insurance market as a whole, the task of finding ways to counteract the facts of unfair behavior of consumers of services is becoming urgent. It should be borne in mind that consumer extremism is a complex, multifaceted phenomenon: it has legal, and at the same time social, economic, psychological foundations, motives and consequences. Therefore, it is extremely important to go beyond the purely legal aspects in this research. In this regard, the purpose of the work was to identify the most significant aspects in the study of consumer extremism as a phenomenon that takes place in the insurance market. As a result of the study, we came to the conclusion that it is necessary to take into account both the consumer's polysubject connections, which arise in the insurance market, and the multidisciplinary ones, which are formed within a particular insurance transaction. When assessing a possible area of relations where consumer extremism can manifest itself, we should take into account all scenarios of consumer’s activity from the passive one, in which the relationship does not go beyond the «policyholder — insurer», to the proactive one, when representatives of the insurance infrastructure are involved in the relationship. In the result a set of measures has been offered which would help prevent consumer extremism cases while implementing insurance relationships.

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