Notice of Retraction: Interaction between Life Insurance Fund Investment and Financial Market in China: General Investment Strategies for Life Insurance Companies

2009 ◽  
Author(s):  
Ran Qu ◽  
Zhenting Qu
Keyword(s):  
Financial Market ◽  
Life Insurance ◽  
Insurance Companies ◽  
Insurance Fund ◽  
Investment Strategies ◽  
Fund Investment

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 ANALYSIS OF THE MAIN INDICATORS OF THE INSURANCE COMPANY’S FINANCIAL STABILITY USING SIMULATION MODELLING

2019 ◽  
Keyword(s):  
Simulation Model ◽  
Life Insurance ◽  
Financial Stability ◽  
Simulation Modelling ◽  
Insurance Companies ◽  
Insurance Fund ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Mathematical Methods ◽  
Financial Condition

The purpose of insurance is to accumulate funds to fulfill obligations to its clients, as well as to invest further in the expansion of insurance activities and the development of the country's economy. The success of insurance companies depends to a large extent on their financial status, that is, financial stability and solvency. The financial condition of an insurance company is characterized by the indicators that describe its ability to develop and successfully operate in a competitive market environment. The stable financial condition of the insurer is a guarantee of development in the conditions of the market economy and an insurance of the stability of the development of the insurance market in the country. The purpose of this research is to assess the financial stability of a non-life insurance company and to analyze the main factors affecting it with the use of computer simulation modelling. The simulation model covers the main processes of the non-life insurance company and is based on the application of financial analysis methods, economic and mathematical methods, and modern simulation technologies. Based on the simulation model, the financial stability of the insurance company is assessed, namely the analysis of the insurance company’s profitability, income, expenses, indicators of profitability; the coefficients of financial stability of the insurance fund and the level of insurance reserves for the analysis of the adequacy of the insurance fund are calculated; the actual and normative solvency margin is calculated for controlling the fulfillment of solvency conditions; the solvency ratio (autonomy) is calculated; the equity ratio is calculated and an analysis of the adequacy of equity is carried out. The developed simulation model can be used to increase the level of planning and analytical reporting, to improve methods of conducting insurance operations, to plan and forecast the activity, and to increase the validity of managerial decisions.

Abstract: Alternative Investment Strategies for the Issuers of Equity-Linked Life Insurance Policies with an Asset Value Guarantee

1977 ◽  
Vol 12 (4) ◽  
pp. 651-652 ◽  
Author(s):  
Michael J. Brennan ◽  
Eduardo S. Schwartz
Keyword(s):  
Option Pricing ◽  
Life Insurance ◽  
Mutual Fund ◽  
Investment Strategy ◽  
Insurance Companies ◽  
Recent Theory ◽  
Investment Strategies ◽  
Insurance Company ◽  
Insurance Policy ◽  
Asset Value

An equity-linked life insurance policy with an asset value guarantee (ELPAVG) is an insurance policy whose benefit payable on death or at maturity consists of the greater of some guaranteed amount and the value of a reference portfolio which is defined by the deemed investment of a predetermined component of the policy premium in a portfolio of common stocks or mutual fund–the reference fund. In an earlier paper we demonstrated that the benefit payable under an ELPAVG could be decomposed into the known guaranteed amount and an immediately exercisable call option to purchase the reference portfolio for an exercise price equal to the guaranteed amount. The principles of the option pricing model were then employed to derive the equilibrium premium for both a single premium ELPAVG contract and a periodic premium contract. It was further noted that the hedging arguments, which are the core of most of the recent theory of option pricing, could be employed to derive an investment strategy for the insurance company which would eliminate the risks associated with the sale of ELPAVGs: this is an important result, for ELPAVGs may pose a significant threat to the solvency of insurance companies since the risks of loss under different contracts are not independent, but are commonly related to the overall performance of the reference fund. Actuaries have responded to this threat by attempting to determine a level of reserves sufficient to reduce the probability of ruin to an acceptable level. On the other hand, adoption of the riskless investment strategy in theory eliminates the need to hold any reserves except against mortality risk.

scholarly journals A Markowitz Approach For Asset Allocation In The Albanian Bond Market

2016 ◽  
Vol 12 (10) ◽  
pp. 129
Author(s):  
Ardi Bezo ◽  
Hidajet Shehu ◽  
Zamir Manaj
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Life Insurance ◽  
Asset Allocation ◽  
Commercial Banks ◽  
Insurance Companies ◽  
Model Optimization ◽  
Investment Portfolio ◽  
Management Philosophy ◽  
Bank Deposits

Having reviewed all the components that meet a country's financial system, the Albanian financial market landscape is asymmetrical. To date investments in Albania are realized mainly through bank deposits or securities in informal way or Bonds investments. However, a high proportion of the total assets of life insurance companies are invested in deposits of commercial banks, it is necessary to diversify the sources of investments and a weakening dependence on commercial banks. This restructuring will bring changes in investment policy and in the risk management philosophy. The analytical approach consists in how to diversificate the risk throwing Optimization portfolio of all markets actors, detailed analysis of all the limitations that offers the Albanian financial market, identifying financial instruments comprising the investment portfolio of financial institutions and building a model optimization which will bring increased value of investments. At the end of the paper will be conducted a comparative analysis in Albania Financial markets.

The life insurance companies as participants in the financial market

HORIZONS A ◽  
2016 ◽  
Vol 20 ◽  
Author(s):  
Bratislav Miloshevikj ◽  
Risto Gogoski ◽  
Aneta Trpkoska
Keyword(s):  
Financial Market ◽  
Life Insurance ◽  
Insurance Companies

scholarly journals Insurance Companies as an Element of the Credit System

2021 ◽  
Vol 8 (523) ◽  
pp. 150-156
Author(s):  
O. M. Romashko ◽  
◽  
N. О. Krykhivska ◽  
L. M. Savchyn ◽  
◽  
...  
Keyword(s):  
Financial Market ◽  
Life Insurance ◽  
Financial Services ◽  
Foreign Capital ◽  
Insurance Companies ◽  
Credit System ◽  
Present Stage ◽  
Research Issues ◽  
Factors Influencing ◽  
Banking Institutions

The article is aimed at researching the main indicators of the activities of insurance companies in Ukraine and determining their role in the structure of credit system. Generalizing scientific works on the research issues of the functioning of non-bank financial and credit institutions as a whole and insurance companies in particular, the authors determine the need to study certain issues of development of insurance market actors at the present stage (namely, indicators of the activities of insurance companies) and define their place in the credit system. Analyzing the dynamics and structure of the assets of the credit system in the context of its components – the banking and parabanking system, the bank-centric model of the financial market is determined, because the main share in the assets of the credit system is occupied by the assets of banking institutions. It is determined that financial and insurance companies play a significant role in the functioning of the credit system of Ukraine among parabanking institutions. The analysis of the main indicators of the activity of insurance companies and the dynamics of their number is carried out. It is found that despite the decrease in the number of insurance companies in dynamics, the volumes of gross insurance premiums and gross insurance payments are characterized by positive growing trends. Factors influencing such changes are the exit from the market of unreliable and financially insolvent insurers; change of views on life insurance, assets and liability, as well as an active development of partnerships with foreign counterparties and the emergence of insurance companies with foreign capital on the domestic market. The article also provides a rating of insurance companies by assets at the end of 2020 and defines their share in the assets of the credit system in general. Prospects for further research are to distinguish the main reasons for the downturn in the number of insurers and their impact on the state of the financial services market as a whole.

Development of insurance market in Slovak Republic and Czech Republic

2016 ◽  
Vol 17 (4) ◽  
pp. 0-0
Author(s):  
Jana Masárová ◽  
Eva Ivanová
Keyword(s):  
Czech Republic ◽  
Financial Market ◽  
Life Insurance ◽  
Social Factors ◽  
Slovak Republic ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Markets ◽  
National Insurance ◽  
Number Of Factors

National insurance market, which is part of the financial market is influenced by number of factors of national economy and the global economic environment. Czech Republic and Slovakia were until 1993 part of one state, after the split, both insurance markets of independent republics under the influence of various economic and social factors started to develop differently. The aim of this article is to identify commonalities and differences in the development of insurance markets in Slovakia and Czech Republic through a comparison of selected indicators. The analysis focuses on the following indicators of the insurance market: the number of commercial insurance companies, the share of life insurance premiums written on the insurance market and the concentration calculated according to the Herfindahl – Hirschman Index. Selected indicators are observed for the period during 2004 – 2014.

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