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.

Assessing the Impact of Suicide Exclusion Periods on Life Insurance

Crisis ◽  
2010 ◽  
Vol 31 (4) ◽  
pp. 217-223 ◽  
Author(s):  
Paul Yip ◽  
David Pitt ◽  
Yan Wang ◽  
Xueyuan Wu ◽  
Ray Watson ◽  
...  
Keyword(s):  
Life Insurance ◽  
Accidental Death ◽  
Insurance Policy ◽  
Death Rates ◽  
Insurance Policies ◽  
Suicidal Death ◽  
Insured Individual ◽  
The Impact ◽  
Insurance Data ◽  
The Relationship

Background: We study the impact of suicide-exclusion periods, common in life insurance policies in Australia, on suicide and accidental death rates for life-insured individuals. If a life-insured individual dies by suicide during the period of suicide exclusion, commonly 13 months, the sum insured is not paid. Aims: We examine whether a suicide-exclusion period affects the timing of suicides. We also analyze whether accidental deaths are more prevalent during the suicide-exclusion period as life-insured individuals disguise their death by suicide. We assess the relationship between the insured sum and suicidal death rates. Methods: Crude and age-standardized rates of suicide, accidental death, and overall death, split by duration since the insured first bought their insurance policy, were computed. Results: There were significantly fewer suicides and no significant spike in the number of accidental deaths in the exclusion period for Australian life insurance data. More suicides, however, were detected for the first 2 years after the exclusion period. Higher insured sums are associated with higher rates of suicide. Conclusions: Adverse selection in Australian life insurance is exacerbated by including a suicide-exclusion period. Extension of the suicide-exclusion period to 3 years may prevent some “insurance-induced” suicides – a rationale for this conclusion is given.

Optimal pricing decision of composite service offered by network providers in E-commerce environment

2021 ◽  
Author(s):  
Zheng Liu ◽  
Hangxin Guo ◽  
Yuanjun Zhao ◽  
Bin Hu ◽  
Xiaodong Ji ◽  
...  
Keyword(s):  
Optimal Pricing ◽  
Composite Service ◽  
Pricing Decision

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%.

Pengaruh Promosi terhadap Penjualan Polis Asuransi Syariah

2020 ◽  
Vol 3 (2) ◽  
pp. 144-152
Author(s):  
Ermayanis Ermayanis ◽  
Nurse Fatimah MZ
Keyword(s):  
Regression Analysis ◽  
Linear Regression ◽  
Quantitative Methods ◽  
Linear Regression Analysis ◽  
Insurance Companies ◽  
Simple Linear Regression ◽  
Insurance Policy ◽  
Insurance Policies ◽  
Islamic Insurance ◽  
The Relationship

This study aimed to determine the effect of promotion on the sales of Islamic insurance policies at PT. Asuransi Takaful Keluarga RO Riau Agency Pekanbaru. This research was motivated by the development of Islamic insurance companies both in terms of assets and in terms of company contributions that have an impact on insurance policy sales. The formulation of the problem in this study was to determine the effect of the relationship promotion on insurance policy sales. This research used quantitative methods with simple linear regression analysis. The sample in this study was 49 respondents. Based on the results of the partial test (t-test), the tcount was 1.391 <t-table 2.016, so the promotion had no significant effect on the variable sales of the insurance policy of PT. Asuransi Takaful Keluarga RO Riau Pekanbaru. The regression results showed that the promotion variable does not affect sales.

A framework to manage business-to-business branding strategies

2019 ◽  
Vol 14 (2) ◽  
pp. 110-122 ◽  
Author(s):  
Fabio Cassia ◽  
Francesca Magno
Keyword(s):  
Design Methodology ◽  
Specific Situation ◽  
Content Type ◽  
The Past ◽  
Branding Strategies ◽  
B2b Branding ◽  
Number Of Customers ◽  
The Relationship ◽  
Business To Business ◽  
Practical Implications

PurposeIn the past decades, a growing body of studies has assessed the importance of brands in business-to-business (B2B) markets. However, until date, a comprehensive understanding of B2B branding strategies is lacking. Hence, the purpose of this paper is to develop a framework to select and manage B2B branding strategies.Design/methodology/approachThis study’s arguments are developed in line with MacInnis’s (2011) guidelines on conceptual contributions in marketing.FindingsAs a result of the arguments of this study, a framework is developed to identify the relationships between the types of B2B contexts and effective B2B branding strategies.Research limitations/implicationsDespite deriving from an extensive analysis of the literature, the framework requires future empirical validation. Moreover, the relationship linking a supplier to its customer is unique, and hence, each supplier should carefully select a branding strategy depending on the specific situation.Practical implicationsThe suggested framework provides actionable insights to inform managers’ decisions about the most effective B2B strategy for their firm, based on the relational complexity (number of customers, intensity of co-production and co-creation, and dyadic vs multiple-actor view).Originality/valueThis is the first study to provide a comprehensive model of B2B branding strategies. Therefore, it contributes to both advance theoretical knowledge and managerial practice.

Superior Customer Value and Network size in Markets Characterized by Network effects

2011 ◽  
pp. 84-97 ◽  
Author(s):  
Fan-Chen Tseng ◽  
Ching-I Teng ◽  
David Chiang
Keyword(s):  
Customer Value ◽  
Network Effects ◽  
Perceived Value ◽  
Network Size ◽  
Network Effect ◽  
Customer Perceived Value ◽  
Business Practitioners ◽  
Winner Take All ◽  
Number Of Customers ◽  
The Relationship

Network effect indicates that the value of connecting to a network is positively associated with the current number of customers connected to that network. Network effect strengthens the strong firms, weakens the weak firms, and may lead to a winner-take-all market. Thus, managing customer perceived value is crucial in markets with network effects. This article models customer perceived value, presents ways to improve the value, and discusses the relationship between customer perceived value and network size. Implications for e-business practitioners are discussed.

scholarly journals Russian Citizens’ Attitude toward Insurance Policies as a Factor of Individual Economic Security

2019 ◽  
Vol 10 (1) ◽  
pp. 23
Author(s):  
Olga Medyanik ◽  
Olga Deyneka
Keyword(s):  
Development Strategy ◽  
Financial Literacy ◽  
Insurance Industry ◽  
Economic Security ◽  
Insurance Market ◽  
Management Tool ◽  
Insurance Policies ◽  
External Threats ◽  
Private Citizens ◽  
Literacy Preparation

Today, insurance enables the functioning of the market system. In modern Russia, such a mechanism of protection against internal and external threats exists to ensure the economic security of each citizen. Indeed, individual insurance policies continue to gain importance as the most effective risk management tool to guarantee the safety of the health and property of private citizens. The goal of this study was to investigate Russian citizens’ attitudes towards insurance policies and investment bearing in mind the concept of personal economic security. Preparations for this study were focused on theoretical understandings of economic security problems, taking the field of insurance as an example. Our research consisted of four stages, with a total of 1794 participants. The results of this study can offer insight to improve the functioning of the insurance market in accordance with the framework of the Insurance Industry Development Strategy for the Russian Federation—2020. The obtained results can be used from both a political and economic standpoint in the development of a set of measures dealing with the control of financial institutions, promotion of financial literacy, preparation of courses for universities, and trainings for participants in the insurance market. Policyholders can also use this information to advocate for improved insurance programs for citizens.

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