The impact of hedging on life insurance companies

2019 ◽  
Vol 108 (2) ◽  
pp. 165-194
Author(s):  
Anton S. Wittl
Keyword(s):  
Life Insurance ◽  
Insurance Companies ◽  
The Impact

scholarly journals Impact of premium reserve on life insurance investments in the Western Balkans

2021 ◽  
Vol 16 (2) ◽  
pp. 355-376
Author(s):  
Jelena Tomašević ◽  
Milijana Novović-Burić ◽  
Ljiljana Kašćelan ◽  
Vladimir Kašćelan
Keyword(s):  
Financial Market ◽  
Life Insurance ◽  
Insurance Companies ◽  
Strong Positive Correlation ◽  
Western Balkans ◽  
Insurance Sector ◽  
Correlation And Regression Analysis ◽  
Country Level ◽  
Financial Investments ◽  
The Impact

The growing importance of life insurance in the world imposes a greater need for research in this area, particularly in the Western Balkans where the trend of growth has been closely accompanied by life insurance for the past two decades. Taking into consideration that life insurance companies are significant participants in the financial market, this research paper examines the impact of the premium reserve on the volume of financial investments of life insurance companies in Western Balkan countries, based on aggregate data on country level. In order to test its effect, linear correlation and regression models were used, based on data collected for the period 2006-2016. Additionally, comparative analysis was used to compare the position of life insurance companies in financial markets. The results obtained by applying correlation and regression analysis showed that there is a strong positive correlation between premium reserve and financial investments in all of the aforementioned countries in the region. This result is an important strategic guideline for the regulators and policymakers to make advancements in the life insurance sector as well as in the financial market of the Western Balkans.

scholarly journals IMPACT OF CAPITAL STRUCTURE ON THE PERFORMANCE OF QUOTED INSURANCE FIRMS IN NIGERIA

2021 ◽  
Vol 9 (07) ◽  
pp. 324-334
Author(s):  
Oluwaleye, Taiwo Olarinre ◽  
◽  
Kolapo, Funso Tajudeen (PhD) ◽  
Ajayi, Foluso Isaac ◽  
◽  
...  
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Granger Causality ◽  
Life Insurance ◽  
Panel Cointegration ◽  
Insurance Companies ◽  
Causality Test ◽  
Long Run ◽  
Short Run ◽  
The Impact

Evidence from the past studies revealed that capital structure has an impact on the firm performance. This research appraises the impact of capital structure on the performance of quoted life insurance companies in Nigeria from 2010 to 2019. The researchers used the panel cointegration model, autoregressive dynamic lag error correction model and pair wise granger causality test to measure the relationship among the variables. The study revealed that capital structure and firm performance has a long-run relationshipand 81% long run disequilibrium is corrected within a year. It was also apparent that there is a significant short run relationship between liquidity of life insurance and return on asset. The Granger causality outcome also shows that bidirectional causality exists between firm size (SIZE) and profitability (ROA) in the short run. We conclude that a large size of life insurance firm has more scope to make more profit in Nigeria context within the study period. The study recommended that to maximize firm’s performance managers must endeavor to obtain and maintain an optimum capital structure level among others.

E-commerce and portfolio allocations: A study on the Indian life insurance customers

2020 ◽  
Vol 1 (1) ◽  
pp. 36-46 ◽  
Author(s):  
Rajeev Kumar Ranjan ◽  
Shoaib Alam Siddiqui ◽  
Nitin Thapar ◽  
Shyam Singh Chauhan
Keyword(s):  
Life Insurance ◽  
Insurance Industry ◽  
Personal Selling ◽  
Minimum Cost ◽  
Online Marketing ◽  
Insurance Companies ◽  
Purchase Behavior ◽  
Outcome Variable ◽  
Insurance Sector ◽  
The Impact

The paper attempts to find the impact of technology on the purchase behavior of consumers for insurance products. With the use of technology and e-commerce the adoption of insurance products had undergone a transformation. With the entry of private players the insurance sector has become very competitive (Jampala & Rao, 2005). With increased competition the life insurance industry is adopting innovative marketing practices to tap a larger market; the companies therefore are developing their capabilities of access-based penetration, distribution and sale to customers. The advances in technology have changed the way insurance products were marketed in India. Apart from the traditional agency channel, the companies are also exploring alternative channels like brokers, rural channels, online marketing, and e-commerce, etc. The personal selling based channels are the new innovative methods offering an effective reach at a minimum cost. To analyze the consumer purchase behavior the study used two-way ANOVA to determine the effect of two nominal predictor variables on a continuous outcome variable. The results of the study will assist the life insurance companies in improving their operations and efficiency.

Life Insurance Companies' Performance and Intellectual Capital: A long-term perspective

2014 ◽  
Vol 13 (04) ◽  
pp. 755-777 ◽  
Author(s):  
Qian Long Kweh ◽  
Wen-Min Lu ◽  
Wei-Kang Wang ◽  
Meng-Hsu Su
Keyword(s):  
Intellectual Capital ◽  
Life Insurance ◽  
Operating Performance ◽  
Insurance Companies ◽  
Structural Capital ◽  
Panel Data Regression ◽  
Potential Applications ◽  
Dynamic Data Envelopment Analysis ◽  
The Impact ◽  
Better Than

This study used dynamic data envelopment analysis (dynamic DEA) to evaluate the operating performance of life insurance companies in Taiwan and China. In addition, this study adopted panel data regression, which employs the cross-section and time-series approaches, to investigate the impact of intellectual capital (IC) on operating performance. The results indicated that the overall performance of life insurance companies in China was better than that of life insurance companies in Taiwan. Furthermore, in both countries, the performance of life insurance companies with local capital was better than that of companies with foreign capital. The results also showed that human capital (HC) and structural capital (SC) had impacts on the operating performance of life insurance companies. The potential applications and strengths of DEA in assessing the life insurance industries in Taiwan and China are highlighted.

Market structure, efficiency and profitability of insurance companies in Ghana

2015 ◽  
Vol 10 (4) ◽  
pp. 648-669 ◽  
Author(s):  
Abdul Latif Alhassan ◽  
George Kojo Addisson ◽  
Michael E. Asamoah
Keyword(s):  
Market Structure ◽  
Life Insurance ◽  
Insurance Industry ◽  
Consumer Welfare ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Markets ◽  
Ample Evidence ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of the regulatory-driven market structure on firm pricing behaviour by testing the structure-conduct-performance (S-C-P) hypothesis for both life and non-life insurance markets in Ghana. Design/methodology/approach – Using a panel data on 14 life and 22 non-life insurers from 2007 to 2011, the authors employed the Herfindahl Hirschman Index and concentration ratio as proxies for the S-C-P hypothesis while efficiency scores were estimated using the data envelopment analysis technique to proxy for the efficient structure (ES) hypothesis. The dependent variable, profitability was measured as return on assets while controlling for size, underwriting risk, leverage, GDP growth rate and inflation. The models were estimated using the panel corrected standard errors of Beck and Katz (1995) and random effects estimations. Findings – The results from the empirical estimation provide ample evidence in support for ES hypothesis for both life and non-life insurance markets. While conflicting results was found for SCP hypothesis in the non-life insurance market, it was rejected in the life insurance market. The findings also point to an increasing level of competition in both life and non-life insurance industry in Ghana though they still remain concentrated with the life insurance sector having high levels of efficiency compared to the non-life sector. Practical implications – The findings of the study will enhance the understanding of firm behaviour in the new markets created to shape regulatory and competition policies of the regulator to promote consumer welfare while ensuring a stable industry to enhance its role in economic development. Originality/value – This is the first study to test the market power and efficient hypotheses on the insurance industry in Ghana. To the best of the author’s knowledge, this study is the first to examine the determinants of profitability in the non-life insurance market.

scholarly journals Influencing Factors of Corporate Performance of Life Insurance Companies – Evidence from China

2018 ◽  
Vol 7 (2) ◽  
pp. 219
Author(s):  
Maoguo Wu ◽  
Yanyuan Wang
Keyword(s):  
Life Insurance ◽  
Corporate Performance ◽  
Insurance Industry ◽  
Channel Structure ◽  
Policy Implications ◽  
Insurance Companies ◽  
Chinese Government ◽  
Life Insurance Industry ◽  
State Pension ◽  
The Impact

At present, the life insurance industry in China is still in the initial stage of development, which is characterized by limited scale, low penetration rate and low intensity. However, the large population base, the proliferation of middle classes, and the continuously improving socio-economic environment in China imply underlying developmental opportunities for the life insurance industry. Gaps in state pension have appeared owing to the issue of aging population, which signals that insurance companies with commercial properties may become an integral part of resident endowment. Ever since 2014, Chinese government has implemented numerous policies that are beneficial to the life insurance industry, for instance, diversifying investment channels of premiums, allowing a certain proportion of premiums in risky investments, and removing the restriction that the rate of return on common stakeholders’ equity (ROE) of participating insurance is capped at 5%. This paper constructs a panel data of 36 Chinese life insurance companies from 2010 to 2014. A serial of preliminary tests are taken in order to avoid spurious regression. By dint of the fixed effect model and panel threshold model, the paper analyzes the relation between operation-related factors and the corporate performance of life insurance companies. According to empirical findings, bancassurance income rate, professional insurance agency income rate, participating insurance income rate, group insurance income rate, company scale and solvency adequacy ratio are negatively correlated with corporate performance. When life insurance companies are associated with banks in capitals, bancassurance income rate positively influences corporate performance. The paper also investigates the impact of specific marketing channel structure and product structure on corporate performance. Policy implications are proposed accordingly.

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