scholarly journals Applying marketing management and communication management theories to increase client retention in the short-term insurance industry

2014 ◽  
Vol 40 (2) ◽  
pp. 328-337 ◽  
Author(s):  
H. Loots ◽  
A.F. Grobler
Keyword(s):  
Insurance Industry ◽  
Marketing Management ◽  
Short Term ◽  
Communication Management ◽  
Client Retention ◽  
Term Insurance ◽  
Management Theories

scholarly journals The continuous market cycle of the short term insurance industry

2012 ◽  
Vol 2 (1) ◽  
pp. 22-29
Author(s):  
Liezel Essel ◽  
Frederik J. Mostert ◽  
Jan Hendrik Mostert
Keyword(s):  
South Africa ◽  
Insurance Industry ◽  
Emerging Market ◽  
Literature Study ◽  
Short Term ◽  
Financial Decision Making ◽  
Empirical Survey ◽  
Term Insurance ◽  
Financial Decision ◽  
The Impact

The short-term insurance industry is a cyclical type of business due to the impact of the continuous market cycle. This cycle has a growth phase, soft market phase, hard market phase and a break-even phase. The objective of the research paper focuses on the improvement of financial decision-making when executives of the short-term insurance industry are managing their business during the various phases of the continuous market cycle. Both a literature study and an empirical survey were necessary to achieve the research objective. The empirical survey included the contributions of the top nine commercial and corporate short-term insurers in South Africa. They represented more than 77% of the total gross written premiums in 2009 and can thus be considered as the leaders of the short-term insurance industry in this country. The conclusions of the study should be valuable to other developing countries with emerging market economies as South Africa is also classified as such. The study focused on the various factors which may cause the continuous market cycle, the problem areas which the executives experience concerning the continuous market cycle, and how often various factors are adjusted by the short-term insurers to account for changes in the continuous market cycle.

Bühlmann & Bühlmann-Straub Credibility for Extreme Claims Applied on Non-Life Egyptian Insurance Market: An Actuarial Approach

2019 ◽  
Vol 10 (10) ◽  
pp. 992-1002
Author(s):  
Mahmoud Elsayed ◽  
◽  
Amr Soliman ◽  
Keyword(s):  
Linear Function ◽  
Extreme Events ◽  
Insurance Industry ◽  
Real Data ◽  
Insurance Market ◽  
Credibility Theory ◽  
Short Term ◽  
Insurance Premiums ◽  
Term Insurance ◽  
Actuarial Approach

Credibility theory is an actuarial approach used to calculate the short term insurance premiums. The aim of this article is to calculate the credibility premium based on real data from non-life Egyptian insurance industry during 10 years period (2006 to 2015), taking into consideration the amount of incurred claims from six insurance branches and the number of extreme losses in each branch. The analysis was based on the assumptions of Bühlmann and Bühlmann-Straub credibility models in order to estimate the net credible premium for the upcoming year as a linear function of the prior claims and the number of extreme events.

scholarly journals Regulatory changes in South Africa and their impact on the short-term insurance environment, 1960–1980

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Yolande Hagedorn-Hansen ◽  
Grietjie Verhoef ◽  
Gideon Els
Keyword(s):  
Global Financial Crisis ◽  
Insurance Industry ◽  
Regulatory System ◽  
Local Environment ◽  
Time Frame ◽  
Regulatory Regime ◽  
Financial Industry ◽  
Short Term ◽  
Regulatory Changes ◽  
Term Insurance

Orientation: The South African Insurance Act 18 of 2017 became effective on 01 July 2018 as part of the new Twin Peaks regulatory system. The often stated reason for the new regulatory regime is the 2008 global financial crisis. Regulatory changes in the local environment took place during two distinct periods in history following the Sharpeville and Soweto uprisings in 1960 and 1976. International sanctions combined with an outflow of capital ultimately saw government amending the regulatory framework through new ownership requirements for all insurers in order to secure funds locally.Research purpose: The purpose of this research was to explain how the contextual dynamics impacted regulatory responses, and what was the subsequent effect on the short-term insurance industry.Motivation for the study: The motivation for the study was to explain and understand market dynamics following the regulatory tightening of the insurance industry within a historical framework.Research approach/design and method: This article provides an empirical analysis of how regulatory intervention transformed market characteristics and thus contributed to an understanding of the localisation of a financial industry, namely the short-term insurance industry. This was achieved through a description of the regulation, including the exploration of possible consequences at the time of two major events in history.Main findings: In both cases the findings were that the market size contracted, corrected and expanded within a few years.Practical/managerial implications: This article provides a practical analysis of local industry performance in an environment of legislative changes which may assist managers in a regulated industry.Contribution/value-add: The contribution is an industry analysis over an extended time frame which may add value in the adoption of similar domestication policies in the rest of Africa.

THE CONTINUOUS MARKET CYCLE OF THE SHORT-TERM INSURANCE INDUSTRY

2012 ◽  
Vol 9 (4) ◽  
Author(s):  
L Essel ◽  
F J Mostert ◽  
J H Mostert
Keyword(s):  
Insurance Industry ◽  
Short Term ◽  
Term Insurance

scholarly journals CURE OR CURSE? REGULATIONS ON THE DEMARCATION BETWEEN HEALTH-INSURANCE POLICIES AND MEDICAL SCHEMES

Obiter ◽  
2021 ◽  
Vol 33 (2) ◽  
Author(s):  
Daleen Millard
Keyword(s):  
Insurance Industry ◽  
Private Insurance ◽  
Health It ◽  
Short Term ◽  
Insurance Policies ◽  
Term Insurance ◽  
Insurance Business ◽  
The Difference ◽  
The Impact

In South Africa, private insurance policies are regulated by the Long-term Insurance Act and the Short-term Insurance Act. Medical schemes fall under the Medical Schemes Act (131 of 1998) and yet, despite the fact that there are three dedicated statutes that deal with the risks relating to ill health, it seems that the distinction between insurance products and medical-scheme benefits isnot so clear. On 2 March 2012 National Treasury published the proposed amendment of regulations made under section 72 of the LTIA and under section 70 of the STIA. These are jointly referred to as the “Demarcation Regulations”. This note provides an overview of these proposals against the background of the difference between insurance business and medical-schemes business. In addition, itinvestigates the policy principles that informed the Demarcation Regulations and comments on the impact of those on the insurance industry and on medical schemes.

scholarly journals Reinsurance by South African short-term insurers

2010 ◽  
Vol 7 (3) ◽  
pp. 210-218 ◽  
Author(s):  
M du Plessis ◽  
Frederik J. Mostert ◽  
Jan Hendrik Mostert
Keyword(s):  
Decision Making ◽  
Developing Countries ◽  
South African ◽  
Emerging Economies ◽  
Insurance Industry ◽  
Short Term ◽  
Financial Decision Making ◽  
Retention Level ◽  
Term Insurance ◽  
Financial Decision

Short-term insurers utilize mutually loss sharing by obtaining cover for their risk portfolios by ceding a part thereof to a professional reinsurer, who pools the risks of various insurers. This study, which has the improvement of financial decision-making by short-term insurers pertaining reinsurance as its objective, focuses on the reasons why short-term insurers obtain reinsurance. The various methods/contracts of reinsurance, as well as the forms/bases of reinsurance which are employed by short-term insurers, represent main sections of this research. The factors which determine the retention level of a short-term insurer also receive the necessary attention. This study may serve as an illustration to other developing countries with emerging economies as the empirical study focuses on the market leaders of the General Segment of the South African short-term insurance industry.

Consumer Awareness, Consumer Protection, Service Quality and Loyalty: The Case of Long-term Insurance Consumers in Namibia

2019 ◽  
Vol 118 (8) ◽  
pp. 172-189
Author(s):  
Magreth B Tjizumaue ◽  
Krishna Govender
Keyword(s):  
Service Quality ◽  
Consumer Protection ◽  
Structural Equation ◽  
Insurance Industry ◽  
Business Practices ◽  
Consumer Awareness ◽  
Growth And Survival ◽  
Term Insurance ◽  
Protection Legislation

Due to the absence of appropriate Consumer Protection legislation in Namibia, there seems to be a lack of consumer protection, which may result in consumers being exploited. Since the literature reveals that Consumer Awareness, Consumer Protection, Service Quality and Customer Satisfaction influence Customer Loyalty, the aforementioned relationship was explored among consumers of long-term insurance products in Namibia. The researcher embedded the study in the Services Marketing and User’s Satisfaction/Dissatisfaction theory and developed a framework for creating a more aware consumer and thus contribute to the growth and survival of the long-term insurance industry in Namibia.  A survey was conducted using a questionnaire, among a judgmental sample of 407 long-term insurance consumers in Namibia and Structural Equation Modelling was used to analyse (eight) hypothesized relationships among the research constructs alluded to in the title of this study. In summary, it was ascertained that if the customers are fully aware (have sufficient knowledge of the products and their consumer rights), they will feel protected against unfair business practices. Furthermore, if they perceive having received quality services, they are more likely to be satisfied with the service provider and will therefore, remain loyal.

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