Combining Life and Health Insurance*

2019 ◽  
Vol 135 (2) ◽  
pp. 913-958 ◽  
Author(s):  
Ralph S J Koijen ◽  
Stijn Van Nieuwerburgh
Keyword(s):  
Health Insurance ◽  
Life Insurance ◽  
Survival Rates ◽  
Insurance Companies ◽  
Insurance Markets ◽  
Free Access ◽  
Access To Treatment ◽  
Term Care ◽  
Long Run ◽  
Premium Income

Abstract We estimate the benefit of life-extending medical treatments to life insurance companies. Our main insight is that life insurance companies have a direct benefit from such treatments because they lower the insurer’s liabilities by pushing the death benefit further into the future and raising future premium income. We apply this insight to immunotherapy, treatments associated with durable gains in survival rates for a growing number of cancer patients. We estimate that the life insurance sector’s aggregate benefit from FDA-approved immunotherapies is $9.8 billion a year. Such life-extending treatments are often prohibitively expensive for patients and governments alike. Exploiting this value creation, we explore various ways life insurers could improve stress-free access to treatment. We discuss potential barriers to integration and the long-run implications for the industrial organization of life and health insurance markets, as well as the broader implications for medical innovation and long-term care insurance markets.

Kinerja Keuangan Perusahaan Asuransi Jiwa Konvensional di Indonesia Periode 2015-2018

2019 ◽  
Vol 15 (1) ◽  
pp. 43-57
Author(s):  
Ely Siswanto ◽  
Raudhotul Miul Hasanah
Keyword(s):  
Life Insurance ◽  
Joint Venture ◽  
Control Variable ◽  
Sampling Technique ◽  
Insurance Companies ◽  
Loss Ratio ◽  
Analysis Model ◽  
Independent Variables ◽  
Investment Returns ◽  
Premium Income

This research aims to analyze the effect of financial indicator such as premium income, investment returns, volume of capital, loss ratio, operating expenses and risk based capital on the profitability (ROA) of conventional life insurance companies during the first quarter of 2015 until the third quarter of 2018. This research uses premium income, investment returns, volume of capital, loss ratio, operating expenses and risk based capital as independent variables and the dependent variable is Return On Assets, and joint venture alliance strategies as a control variable. The population of data is conventional life insurance companies in Indonesia during 2015 until 2018. This research used a purposive sampling technique, it was found that 14 companies met the sample criteria. The analysis model uses regression analysis. The research results show that premium income has a positive significant effect on ROA, the volume of capital has a positive significant effect on ROA and operating expenses have a negative significant effect on ROA. While investment returns, loss ratios and risk based capital, and joint venture alliance strategies do not have a significant effect on ROA. Meanwhile, a joint venture alliance strategies are not significant in influencing the relationship of independent variables to ROA. Further research is recommended to conduct a different test of the financial performance of insurance companies, national life insurance companies and joint venture life insurance companies.  

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.

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.

Does Organizational Heritage Matter in the Development of Offshore Markets? The Case of Australian Life Insurers

2013 ◽  
Vol 87 (2) ◽  
pp. 255-277 ◽  
Author(s):  
Monica Keneley
Keyword(s):  
Financial Markets ◽  
Life Insurance ◽  
International Markets ◽  
Insurance Companies ◽  
Insurance Markets ◽  
Global Networks ◽  
Financial Firms ◽  
Life Insurers ◽  
Sphere Of Influence ◽  
Late Starters

The globalization of financial markets over the past decade has focused the spotlight on the responsiveness of financial firms to international pressures. Insurance markets have traditionally relied on global networks not only to expand the insurers' sphere of influence but also to support domestic business. Until relatively recently, Australian insurance companies have not played a significant role in the development of international markets. However, in the last decade of the twentieth century Australian insurers ventured overseas on a scale without precedence. This article presents an historical perspective on the internationalization of the Australian life-insurance market with a view to understanding why these firms have been classified “late starters” in the internationalization stakes. In a broader capacity it provides insights into the impediments to overseas expansion and the forces encouraging or discouraging the development of cross border networks.

scholarly journals Direct Selling dalam Usaha Perasuransian Perspektif Hukum Islam

2020 ◽  
Vol 5 (1) ◽  
pp. 87-103
Author(s):  
Seri Utami Ningsih, SH.
Keyword(s):  
Health Insurance ◽  
Life Insurance ◽  
Financial Services ◽  
Marketing Channels ◽  
Insurance Companies ◽  
Legal Certainty ◽  
Direct Selling ◽  
Insurance Agents ◽  
Direct Sales ◽  
Marketing Methods

Insurance companies such as PT. Life Insurance Central Asia Raya, PT. Prudential Life Insurance, PT. Generali Indonesia Life Insurance, PT. Tugu Mandiri Life Insurance, PT. MNC Life Insurance, PT. Asuransi Jiwasraya (Persero), and PT. Sequis Life Life Insurance has marketed one of its insurance products with a direct sales system or better known as direct selling. Direct selling does not include the marketing channels stipulated in the Financial Services Authority Regulation (POJK) No. 23 of 2015 concerning Insurance Products and Marketing of Insurance Products. Based on the POJK, direct selling practiced by insurance companies is illegal. Direct selling is developed by insurance agents by recruiting insurance agents in a row. Otoritas Jasa Keuangan (OJK) confirms direct selling as the development of insurance marketing methods. Supervision is unmindful of the principle of legal certainty, professionalism, and openness. In sadd az}-z}ariah, negligent supervision of the OJK is an act that endangers health insurance. OJK must review the direct selling marketing developed by insurance agents further

Consumer Awareness At HDFC Standard Life Insurance

Think India ◽  
2019 ◽  
Vol 22 (2) ◽  
pp. 77-82
Author(s):  
Malyala Prashanth ◽  
Mr. Venkat Reddy ◽  
Mr. G Subbareddy ◽  
DR. Venkata Rangaiah
Keyword(s):  
Health Insurance ◽  
Life Insurance ◽  
Total Population ◽  
Present Form ◽  
Insurance Companies ◽  
Consumer Awareness ◽  
Concept Of Health ◽  
Recent Origin ◽  
Standard Life

Life insurance is the insurance which is taken on the risks of the person. Though life insurance is in practice for many years in different forms in our country the concept of health insurance in its present form is of very recent origin. The fact that the sector is under penetrated can be known by the fact that less than 20% of the total population is insured for life risks. So there is a huge potentiality which is waiting to being tapped by the insurance companies.

scholarly journals THE GROSS DIRECT PREMIUM INCOME UNDER GENERAL AND HEALTH INSURANCE: A SEGMENT – WISE ANALYSIS OF INDIAN PUBLIC SECTOR INSURERS

2021 ◽  
pp. 234-239
Author(s):  
Tulilekha Sil ◽  
Akash Balmiki
Keyword(s):  
Health Insurance ◽  
Public Sector ◽  
Life Insurance ◽  
The Public ◽  
Income Sources ◽  
General Insurance ◽  
Key Players ◽  
Insurance Business ◽  
Premium Income ◽  
Indian Insurance

Insurance business is broadly classified under the two heads – Life Insurance and General Insurance. Life Insurance Corporation of India (LICI) and General Insurance Corporation of India (GICI) are the key players in the public sector. The Indian insurance market consists of many private players as well. The gross direct premium has been the income sources for the insurance business. This study shall highlight the gross direct premium income specifically under the General and Health insurance business of the Indian public sector insurers.

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