Assessment of behavior-based performance in banking and insurance sector

2020 ◽  
Vol 69 (7) ◽  
pp. 1345-1371
Author(s):  
Shaad Habeeb
Keyword(s):  
Work Performance ◽  
Insurance Companies ◽  
New Delhi ◽  
Confirmatory Factor Analyses ◽  
Content Type ◽  
Insurance Sector ◽  
Public Company ◽  
Job Behaviors ◽  
Private And Public ◽  
Behavior Based

PurposeAlthough individual work performance (IWP) has been the subject of research by many authors, most of them have explored work performance as an outcome. However, IWP can also be viewed as conducive job behaviors. On the other hand, as employee behavior is contextual, it must be analyzed from various angles, especially in regard to a national culture of employees. In line with that, the purpose of this study was to explore the behavior-based IWP in the banking and insurance sector in New Delhi (India) by testing the original tool and modifying it into a proposed instrument for its assessment in a Hindi–English environment.Design/methodology/approachUsing a quantitative approach and exploratory and confirmatory factor analyses, specific items for the work performance assessment were selected. The specific steps involved in these processes and resulting item inclusion are discussed in detail.FindingsAlthough employees display a positive behavior-related work performance, there is a difference between private and public company workers. The study proposes modification to the original scale used.Originality/valueThe originality of the study is the assessment of IWP as a result of job behaviors in the non-Western context, in banking and insurance companies. The study has both theoretical and practical value.

Intelligence and its impact on managerial effectiveness and career success (evidence from insurance sector of Pakistan)

2016 ◽  
Vol 35 (4) ◽  
pp. 505-516 ◽  
Author(s):  
Usman Aslam ◽  
Muhammad Ilyas ◽  
Muhammad Kashif Imran ◽  
Ubaid Rahman
Keyword(s):  
Career Success ◽  
Cultural Intelligence ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Insurance Companies ◽  
Managerial Effectiveness ◽  
Job Outcomes ◽  
Content Type ◽  
Cognitive Intelligence ◽  
Insurance Sector

Purpose – The purpose of this paper is to investigate the theoretical linear model on intelligence, i.e. emotional, social, cognitive, and cultural intelligence and its impact on managerial effectiveness and career success in the perspective of insurance sector of Pakistan. Design/methodology/approach – Data collected from 202 managers of insurance companies by using structured questionnaires’ and simple random sampling technique. Multiple regression analysis has used to check the simultaneous effect of multiple types of intelligence on managerial job outcomes. Findings – The results of research revealed that emotional, social, and cognitive intelligence have positive effect on managerial effectiveness and career success. Emotional intelligence is one of the strongest predictor that has significant impact of managerial effectiveness compared to other types of intelligence. Conversely, cultural intelligence has insignificant relation with managerial effectiveness and career success. There are very rare studies conducted to explore the role of multiple types of intelligence to improve managerial job outcomes in the context of insurance sector. This study proved that the transformation of business from production era to relationship-based era increases the importance of multiple types of intelligence to become an effective manager. Research limitations/implications – Moreover, this study contributes in theoretical literature and explores new dimensions for future researchers, practitioners’, and management consultants to recognize the effectiveness of intelligence especially in services sector organizations. Data collected from one sector and by using one point of time raised the issue of common method variance and causality. Originality/value – This study has examined the overarching model on intelligence. Researchers did not find a single study that has addressed the multiple types of intelligence and its impact on managerial outcomes in the perspective of insurance sector.

Myanmar's insurance sector poised for liberalisation

2016 ◽  
Keyword(s):  
Regulatory Framework ◽  
Insurance Companies ◽  
Government Bond ◽  
Content Type ◽  
Customer Base ◽  
Insurance Sector

Subject Myanmar insurance sector prospects. Significance Myanmar's insurance sector is underdeveloped, constrained by an onerous regulatory framework and absence of foreign industry actors, but 2017 is expected to see reforms that should catalyse the sector. Impacts Foreign insurance companies may be given permission to take the first steps in conducting business in Myanmar. However, this would likely be limited to a closely defined customer base. A more robust and dynamic insurance sector could aid government revenues by aiding government bond sales, bringing in kyats. Myanmar insurers will face competition within ASEAN as the insurance sector develops.

scholarly journals Capital regulation and systemic risk in the insurance sector

2018 ◽  
Vol 10 (2) ◽  
pp. 237-263 ◽  
Author(s):  
Thomas Gehrig ◽  
Maria Chiara Iannino
Keyword(s):  
Systemic Risk ◽  
Banking Sector ◽  
Financial System ◽  
Solvency Ii ◽  
Insurance Companies ◽  
Capital Regulation ◽  
Content Type ◽  
Insurance Sector ◽  
Main Challenge ◽  
European Insurance

Purpose This paper aims to analyze systemic risk in and the effect of capital regulation on the European insurance sector. In particular, the evolution of an exposure measure (SRISK) and a contribution measure (Delta CoVaR) are analyzed from 1985 to 2016. Design/methodology/approach With the help of multivariate regressions, the main drivers of systemic risk are identified. Findings The paper finds an increasing degree of interconnectedness between banks and insurance that correlates with systemic risk exposure. Interconnectedness peaks during periods of crisis but has a long-term influence also during normal times. Moreover, the paper finds that the insurance sector was greatly affected by spillovers from the process of capital regulation in banking. While European insurance companies initially at the start of the Basel process of capital regulation were well capitalized according to the SRISK measure, they started to become capital deficient after the implementation of the model-based approach in banking with increasing speed thereafter. Practical implications These findings are highly relevant for the ongoing global process of capital regulation in the insurance sector and potential reforms of Solvency II. Systemic risk is a leading threat to the stability of the global financial system and keeping it under control is a main challenge for policymakers and supervisors. Originality/value This paper provides novel tools for supervisors to monitor risk exposures in the insurance sector while taking into account systemic feedback from the financial system and the banking sector in particular. These tools also allow an evidence-based policy evaluation of regulatory measures such as Solvency II.

Revenue efficiency evaluation of life insurance companies in India: identification of leaders and laggards

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aparna Bhatia ◽  
Megha Mahendru
Keyword(s):  
Life Insurance ◽  
Empirical Work ◽  
Insurance Companies ◽  
Data Envelopment ◽  
Data Set ◽  
Content Type ◽  
Insurance Sector ◽  
Efficiency Performance ◽  
Revenue Efficiency ◽  
Indian Insurance

PurposeThe purpose of this article is to evaluate revenue efficiency performance of life insurance companies in India. The study also compares if private or public insurance sector is more “revenue efficient”. Furthermore, the study determines the nature of return to scale (RTS) and identifies the leaders and laggards amongst insurance companies operating in India.Design/methodology/approachRevenue efficiency is calculated by employing data envelopment analysis – a non-parametric approach, on a data set of 24 insurance companies over the period 2013–2014 to 2017–2018.FindingsThe empirical results suggest that life insurance companies in India could generate only 34.4% of revenue, which is very less than what these are expected to generate from the same inputs. Majority of life insurance companies operating in India are operating at decreasing return to scale (DRS). There is a reduction in leaders and the highest proportion of companies is falling in the category of laggards.Originality/valueAs per the best knowledge of researchers, no empirical work has been carried out with respect to measuring the revenue efficiency of Indian insurance companies. The current study appropriately fills the gap by not only calculating the revenue efficiency scores of insurance companies in India but also provides insights into the causes of revenue inefficiencies. It also gives implications for efficient and effective management of insurance companies.

Managing adversity: understanding some dimensions of organizational resilience

2015 ◽  
Vol 38 (4) ◽  
pp. 346-366 ◽  
Author(s):  
Ihab Hanna Salman Sawalha
Keyword(s):  
Stock Exchange ◽  
Insurance Industry ◽  
Insurance Companies ◽  
Key Factors ◽  
Structured Interviews ◽  
Term Survival ◽  
Content Type ◽  
Insurance Sector ◽  
Quantitative And Qualitative Research ◽  
The Impact

Purpose – This study aims to explore how insurance organisations interpret organisational resilience; to identify potential objectives, elements and practices of organisational resilience within insurance organisations; and to investigate the impact of culture on resilience. Design/methodology/approach – An empirical study in the insurance industry in Jordan was undertaken. The population consists of all 28 insurance companies registered at the Amman Stock Exchange. Data were collected via a survey questionnaire followed by three semi-structured interviews. Findings – Results revealed that respondents understand the meaning of organisational resilience differently. Various factors constitute organisational resilience in Jordanian insurance organisations. Nevertheless, some key factors that have the potential to improve organisational resilience were missing. Culture influenced the level of organisational resilience considerably. Practical implications – This study provides insights into the factors that enable organisations to withstand future risks, which, in turn, ensures long-term survival. It also reveals how culture affects the level of organisational resilience. This paper provides a basis for policymakers in Jordan to start actively considering existing resources and cultural trends to introduce new frameworks for improving resilience in the insurance sector. Originality/value – This study is made in the context of an emerging economy; Jordan. It uses quantitative and qualitative research approaches. It is also one of the few studies to discuss resilience in relation to culture and within the insurance sector.

Barriers to development of private sector investment in water and sewage industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hadi Sarvari ◽  
Daniel W.M. Chan ◽  
Nerija Banaitiene ◽  
Norhazilan Md Noor ◽  
Michael Beer
Keyword(s):  
Private Sector ◽  
Insurance Companies ◽  
Public And Private ◽  
Content Type ◽  
Success Stories ◽  
Recent Success ◽  
Private Sector Investment ◽  
Fuzzy Delphi ◽  
Private And Public ◽  
Private Investors

PurposePrivatization is a complex issue in many developing countries; therefore, it is vital to examine the obstacles that prevent its proper implementation. The goal of this study is to identify and analyze the barriers to private sector investment in the Water and Sewage Industry (WSI) and to suggest effective ways to attract the private investors to this sector.Design/methodology/approachThe obstacles to private sector investment in the WSI were identified by conducting a desktop literature review and interviewing an expert panel, using the fuzzy Delphi technique. The most important barriers were identified and categorized. A structured survey was then developed and distributed to private sector investment experts. The Fuzzy Analytic Hierarchy Process (FAHP) was applied to further examine the responses and to rank the identified barriers.FindingsThe results showed that the greatest barrier to privatization is the weakness of insurance companies in controlling investment risks, and the second greatest barrier is the weakness of the country's capitalist culture. A review of recent success stories revealed that these barriers can be overcome with transparent price policies and increased interaction between the public and private sectors, which motivate private investors to invest in the WSI.Originality/valueThe elicitation of this study can be useful to both private and public sectors for the development of infrastructure projects, particularly for the WSI.

Determinants of profitability of life and non-life insurance companies: evidence from Ecuador

2019 ◽  
Vol 14 (5) ◽  
pp. 831-872
Author(s):  
Segundo Camino-Mogro ◽  
Natalia Bermúdez-Barrezueta
Keyword(s):  
Latin American ◽  
Life Insurance ◽  
Insurance Companies ◽  
Data Envelopment ◽  
Data Set ◽  
Content Type ◽  
Insurance Sector ◽  
Main Determinants ◽  
The Interest Rate ◽  
First Time

Purpose The purpose of this paper is is to identify the main determinants of insurance profitability on life and non-life segments to obtain which variables affect in each market of the Ecuadorian insurance sector. Design/methodology/approach The authors use a large panel data set with financial information from 2001 to 2017 and estimate the determinants through a panel corrected standard errors regression. Findings The authors found that net premiums, technical reserves, capital ratio and score efficiency are micro-determinants in the life insurance sector, whereas in the non-life sector, the micro-determinants include also claim level and liquidity ratio; moreover, the authors found that HHI is a determinant of profitability only in the life insurance. Among the macro determinants set, the authors found that the interest rate has also a significant impact both in the life and non-life insurance. Originality/value The authors analyze a dollarized emerging country, which is the first time in this kind of studies. The authors also include the structure-conduct-performance and relative market power paradigm as well as the ES hypothesis, calculated through the data envelopment analysis, as determinants of insurance profitability. Finally, this is the first research to examine the determinants of profitability in Latin American and Caribbean insurers.

A DEA-investigation of efficiency of the Indian general insurance during recession

2014 ◽  
Vol 11 (1) ◽  
pp. 115-136 ◽  
Author(s):  
Santanu Mandal ◽  
Surajit Ghosh Dastidar
Keyword(s):  
Malmquist Index ◽  
Secondary Data ◽  
Annual Reports ◽  
Insurance Companies ◽  
Operating Characteristics ◽  
Content Type ◽  
Insurance Sector ◽  
General Insurance ◽  
Using Data ◽  
The Impact

Purpose – The purpose of this paper is to investigate the efficiency analysis of the Indian general insurance sector using data envelopment analysis (DEA) and subsequently assess the impact (if any) of the global slowdown on the performance of the allied sector. Design/methodology/approach – The paper aims to analyze the operating performance of 12 general insurance companies in India between 2006-2007 and 2009-2010 using DEA based on secondary data collected from Insurance Regulatory and Development Authority Annual Reports. Findings – Findings clearly indicate that the global economic slowdown has severely affected the performance of the private sector companies; while the public sector companies exhibited relatively lesser variation in performance levels. Research limitations/implications – The methodology employed in the study estimates relative efficiencies without assuming any functional form; as a result the proper comparison of input utilized with the output produced is not possible. Several other tools like Malmquist Index and two-stage procedure have not been used. Originality/value – The study brings into light the operating characteristics and efficiencies of the Indian general insurance sector during the global slowdown and therefore holds practical value for policy makers and practitioners as well as for the decision makers of the firms employed in the study.

Performance analysis of Takaful and conventional insurance companies in Saudi Arabia

2018 ◽  
Vol 25 (2) ◽  
pp. 677-695 ◽  
Author(s):  
Muhammad Hanif Akhtar
Keyword(s):  
Saudi Arabia ◽  
Economies Of Scale ◽  
Productivity Index ◽  
Insurance Companies ◽  
Programming Technique ◽  
Content Type ◽  
Insurance Sector ◽  
Starting Point ◽  
Insurance Firms ◽  
Efficiency And Productivity

Purpose The purpose of this paper is to analyze the performance of Takaful and conventional insurance companies in Saudi Arabia during a period of 2010-2015 by using the data envelopment analysis (DEA) technique for the whole population of insurance companies. Design/methodology/approach Given its objectives, the present study adopts the most prevalent DEA approach, by using the DEA Solver-Pro (Version 13). The DEA has emerged as a valuable analytical research technique. It measures the relative efficiency of firms in the presence of multiple inputs and outputs, based on a linear programming technique, and attempts to find out the firms that determine an envelopment frontier, are super efficient and with a higher productivity index. Findings It stems from the analysis that on a yearly basis, the average efficiency scores of firms have soared up overtime since 2010 till 2014 reflecting that most of the companies did well on the efficiency front. It is notable to mention here that the top slots for super efficiency are taken over by smaller firms, while the bigger firms are laggards here rather than the leaders. This reflects that the larger insurance firms need to augment their efficiency levels through more efficient utilization of inputs. The results of the study reveal that both Takaful and the larger conventional insurance firms in the country need to strengthen their operations more efficiently in order to take advantage of the economies of scale and scope. Market share and profitability are important determinants of efficiency. Research limitations/implications The larger insurance firms in the country need to a possible solution to the issue of inefficient market dynamics might lie in consolidation of the market through mergers and acquisitions. However, this needs a direct involvement of regulators in the Kingdom so that the market becomes healthy. Even though the Saudi insurance sector appears to have benefited from the compulsory insurance regulations for the expatriates and their families, however, there is still a need for efficiency and productivity improvement in the industry. The Takaful firms need to adopt such measures that would help them to take advantage of their specialized products toward efficiency vis-à-vis productivity drives. Finally, the insurance firms in Saudi Arabia need to adopt the use of threshold practices in order to compare their relative performance to improve on their efficiency and productivity levels by catching-up with the frontiers of best practices. Originality/value Based on the available literature, an exclusive study on the insurance sector of Saudi Arabia is so far non-existent. The study stands as pioneer to provide a starting point on overall performance evaluation of insurance firms in Saudi Arabia in various contexts in addition to the current and future trends of the insurance sector in the Kingdom.

Productivity of the Indian non-life insurance sector

2019 ◽  
Vol 69 (4) ◽  
pp. 633-650
Author(s):  
Ashiq Mohd Ilyas ◽  
S. Rajasekaran
Keyword(s):  
Life Insurance ◽  
Average Rate ◽  
Insurance Companies ◽  
Scale Efficiency ◽  
Index Number ◽  
Content Type ◽  
Insurance Sector ◽  
Index Number Theory ◽  
Practical Implications ◽  
Observation Period

Purpose The purpose of this paper is to analyse the performance of the Indian non-life (general) insurance sector in terms of total factor productivity (TFP) over the period 2005–2016. Design/methodology/approach This study utilises Färe‒Primont index (FPI) to access the change in TFP and its components: technical change, technical efficiency and mix and scale efficiency over the observation period. Moreover, it employs the Mann–Whitney U-test to scrutinise the difference between the public and the private insurers in terms of growth in productivity. Findings The results reveal that the insurance sector possesses a very low level of TFP. Also, the results divulge an improvement of 11.98 per cent in TFP of the insurance sector at an annual average rate of 12.41 per cent over the observation period. The growth in productivity is mainly attributable to the improvement of 10.81 per cent in the scale‒mix efficiency. The progress in scale‒mix efficiency is mainly the result of improvements in residual scale and residual mix efficiency. The results also show that the privately owned insurers have experienced a high productivity growth rate than the state-owned insurers. Practical implications The results hold practical implications for the regulators, policymakers and decision makers of the Indian non-life insurance companies. Originality/value This study is the first of its kind to use FPI, which satisfies all economically relevant axioms and tests defined by the index number theory to comprehensively access the change in TFP of the Indian non-life insurance sector.

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