scholarly journals Impact of the Business Structure on Solvency of Property-Liability Insurance Companies and Its Mediating Effect

2021 ◽  
Vol 2021 ◽  
pp. 1-17
Author(s):  
Shuang Wu ◽  
Yi Li
Keyword(s):  
Risk Management ◽  
Mediating Effect ◽  
Liability Insurance ◽  
Insurance Market ◽  
Insurance Companies ◽  
Positive Role ◽  
Effect Model ◽  
Business Structures ◽  
The Impact ◽  
Business Structure

It is an important objective for insurers to optimize their business structures to prevent business risks. This paper examines the solvency risk management in property-liability insurance companies from the perspective of business structure optimization. We construct a logical framework to explain the impact of the business structure on solvency through profitability and reinsurance behavior of property-liability insurance companies. By constructing a mediating effect model, we tested 35 Chinese-funded property-liability insurance companies and 18 foreign-funded property-liability insurance companies in China’s insurance market from 2009 to 2015. Two major results were found as follows: first, the impact of the business structure on solvency is positively significant in small Chinese-funded insurance companies as well as foreign-funded insurance companies, while it is insignificant in large Chinese-funded insurance companies. Second, the mediating effect test shows that the intermediary channel of profitability does not exist, while the intermediary channel of reinsurance exists, and the reinsurance fully mediated the relationship between business structure and solvency only in foreign-funded insurance companies. Therefore, we suggest that small Chinese-funded insurance companies should actively develop nonauto insurance and improve the risk diversification effect of the diversified business structure. On the contrary, foreign-funded insurance companies should give play to their differentiated advantages and continue to concentrate on the operation of nonauto insurance in China’s insurance market. Besides, the above two types of companies should attach more importance to the positive role of reinsurance in solvency risk management in their business development strategies.

RISK MANAGEMENT OF EMERGENCIES OF BUSINESS STRUCTURES IN THE CONTEXT OF GLOBAL INFORMATIZATION

2017 ◽  
Author(s):  
Hamed Rashed Sayed Abdullah Alnuaimi ◽  
Keyword(s):  
Risk Management ◽  
Management System ◽  
Living Conditions ◽  
Normal Operation ◽  
Natural Phenomenon ◽  
Emergency Situations ◽  
Risk Management System ◽  
Business Structures ◽  
The Impact ◽  
Business Structure

Modern processes in a society increasingly began to take on the character of emergencies, namely, the situation in a certain territory, which developed as a result of an accident, a dangerous natural phenomenon, a catastrophe, the spread of a disease, a natural or other disasters that may or did entail human casualties, damage to health people or the environment, significant material losses and disruption of the living conditions of people. At the current time, such a situation is the COVID-19 pandemic, which has already claimed the lives of many people and brought significant economic consequences, including a complete shutdown of the activities of business structures. In this regard, the purpose of the study is to develop a conceptual framework for a risk management system for emergency situations, which can ensure the normal operation of a business structure and prevent its death in the event of an emergency event of any nature. The author analyzed the impact of the COVID-19 pandemic on society and the activities of business structures as one of the latest and most striking examples of emergencies. The analysis revealed that this event could completely destroy the business; therefore, the primary and indispensable criterion for the normal viability of a modern business structure is the ability of top management, based on a strictly scientific basis, to predict, carry out prevention, rationally control and effectively manage risks. Based on the analysis, the author proposed conceptual risk management of emergencies for business structures in the context of global informatization of digitalization. The proposed system is based on the fact that modern processes in society are a symbiosis of two concepts - emergency situations and "black swan", i.e. this is difficult to predict an event that has significant financial and material losses and a violation of the living conditions of an economic entity up to its complete dysfunction. The proposed comprehensive emergency risk management system will allow neutralizing two main and most ambitious consequences: catastrophic losses (financial, labour) and suddenness of the event.

Impact of Institutional Ownership on Stock Liquidity: Evidence from Karachi Stock Exchange, Pakistan

2018 ◽  
Vol 19 (4) ◽  
pp. 939-951 ◽  
Author(s):  
Muhammad Sadil Ali ◽  
Shujahat Haider Hashmi
Keyword(s):  
Stock Exchange ◽  
Institutional Ownership ◽  
Fixed Effect Model ◽  
Insurance Companies ◽  
Positive Role ◽  
Stock Liquidity ◽  
Listed Firms ◽  
Effect Model ◽  
Efficient Resource ◽  
The Impact

This study empirically investigates the impact of institutional ownership on stock liquidity; we used a sample size of 84 non-financial companies listed on Karachi Stock Exchange (KSE). Data were gathered for the period of 10 years, starting from 2005 to 2014. This study employs turnover ratio to measure stock liquidity while institutional ownership is measured by dividing number of shares kept by institutions from total number of outstanding shares. The fixed effect model shows that the degree of stock liquidity in Pakistani-listed firms tend to significantly increase for the firms where institutions hold a significant amount of share of that particular firm. This study also finds that ownership by bank and investment companies are positively associated with liquidity, while relationship between ownership by insurance companies and stock liquidity is found to be insignificant. Our evidence supports that many but not all institutional investors play a positive role to improve stock liquidity in Pakistani capital market. The results of this study are important for dealers, traders and brokers, in the sense that they can facilitate investors in efficient resource allocation.

scholarly journals The Influence of Urban Sprawl on Air Pollution and the Mediating Effect of Vehicle Ownership

Processes ◽  
2021 ◽  
Vol 9 (8) ◽  
pp. 1261
Author(s):  
Aiping Tao ◽  
Qun Liang ◽  
Peng Kuai ◽  
Tao Ding
Keyword(s):  
Air Pollution ◽  
Urban Sprawl ◽  
Negative Impact ◽  
Empirical Support ◽  
Mediating Effect ◽  
Vehicle Ownership ◽  
Mediating Role ◽  
Effect Model ◽  
Significant Negative Impact ◽  
The Impact

Based on the panel data of 224 prefecture-level and above cities in China from 2003 to 2016, this paper empirically studies the impact of urban sprawl on air pollution and introduces a mediating effect model to test the mediating role of vehicle ownership concerning the impact of urban sprawl on air pollution. The research in this paper arrives at three conclusions. First, urban sprawl has a significant positive effect on air pollution, and this conclusion is still valid after solving the endogeneity problem and conducting a robustness test. Second, the results of mediating effect test show that urban sprawl indirectly affects air pollution through the partial mediating effect of vehicle ownership. By removing the mediating effect, urban sprawl has a significant negative impact on air pollution, indicating that the mediating effect of vehicle ownership is higher concerning the impact of urban sprawl on air pollution. Third, further panel quantile regression results show that the higher the level of air pollution, the weaker the mediating effect of vehicle ownership and the stronger the direct effect of urban sprawl on air pollution. These conclusions can provide some empirical support for solving the air pollution problems caused by urban sprawl in China.

scholarly journals Mechanisms of Protection from Interest Rate Risk with Reference to the Life Insurance Market in Montenegro

2018 ◽  
Vol 7 (1) ◽  
pp. 17-42
Author(s):  
Milijana Novović Burić ◽  
Vladimir Kašćelan ◽  
Milivoje Radović ◽  
Ana Lalević Filipović
Keyword(s):  
Risk Management ◽  
Interest Rate ◽  
Life Insurance ◽  
Financial Management ◽  
Financial Stability ◽  
Interest Rate Risk ◽  
Economic Security ◽  
Insurance Market ◽  
Insurance Companies ◽  
Rate Risk

Abstract Insurance companies are facing major challenges that point to the need for control process and risk management. Risk management in insurance has a direct impact on solvency, economic security, and overall financial stability of insurance companies. It is very important for insurance companies to adequately calculate risks to which they are exposed. Asset liability management (ALM), as an integrated approach to financial management, requires simultaneous decision-making about categories and values of assets and liabilities in order to establish the optimum volume and the ratio of assets and liabilities, with the understanding of complexity of the financial market in which financial institutions operate. ALM focuses on a significant number of risks, whereby the emphasis in this paper will be on interest rate risk which indicates potential losses that may reflect in a lower interest margin, a lower value of assets or both, in terms of changes in interest rates. In the above context, the aim of this paper is to show how to protect from interest rate changes and how these changes influence the insurance market in Montenegro, both from the theoretical and the practical point of view. The authors consider this to be an interesting and very important topic, especially because the life insurance market in Montenegro is underdeveloped and subject to fluctuations. Also, taking into account the fact that Montenegro is a country that has been making serious efforts to join the EU, it is expected that insurance companies in Montenegro will strengthen their financial position in the market even using the ALM traditional techniques, which is shown in this paper.

scholarly journals OPPORTUNITIES AND PROSPECTS OF INSURANCE COMPANIES DEVELOPMENT IN UKRAINE UNDER THE COVID-19 PANDEMIC

2021 ◽  
Author(s):  
Iryna Honcharenko ◽  
Nataliia Dudchenko
Keyword(s):  
World Economy ◽  
Insurance Market ◽  
Free Movement ◽  
Insurance Companies ◽  
Current Crisis ◽  
Internal Factors ◽  
Current State ◽  
The Government ◽  
Legislative Changes ◽  
The Impact

The current state, opportunities and prospects of development of the insurance services market in Ukraine are reviewed in the article. Various factors and objective circumstances influence on the development of the world and national insurance services markets. The priority feature of the national and world economy development during recent years is the globalization of financial institutions. The capitals’ movement is the substantial basis of integration and globalization processes. The insurance market is an integral part of the national financial market, so it primarily affected by globalization. This market reacts almost instantly to dynamic processes in the global economic environment and reflects the main trends that determine the formation of modern insurance space. Current crisis differs from the previous one by the significant restrictions for free movement due to the pandemic. The aim of the study is to estimate the most necessary adaptive and transformational changes for insurance companies to ensure their functioning in Ukraine taking in account factors caused by the pandemic. The domestic insurance market has many negative challenges. The issue of quarantine imminent consequences and it affection on the participants of the insurance market is equally important. The limitations and restrictions for the free movement is the main feature of crisis under the pandemic. The impact of external and internal factors on insurance market activity in Ukraine analyzed. The decreasing of the number of insurance companies through objectively-direct consequences of pandemic determined. The set of the medical insurance programs aimed at the case of COVID -19 that offered by Ukrainian insurance companies reviewed. Results of the operating insurance programs estimated. The legislative changes in the insurance sphere caused by a pandemic analyzed. All necessary measures for defense and support people in pandemic implemented by the government. The current and potential threats & possibilities that allow to save and fix insurance companies positions at the insurance services market grounded.

scholarly journals The Main Features of the Modern World Market of Insurance Services

2021 ◽  
Vol 4 (519) ◽  
pp. 36-41
Author(s):  
K. V. Drymalovska ◽  
◽  
R. O. Kyryliuk ◽  
Keyword(s):  
Western Europe ◽  
Insurance Industry ◽  
World Market ◽  
Insurance Market ◽  
Insurance Companies ◽  
Modern World ◽  
The World ◽  
Effective Policy ◽  
Main Components ◽  
The Impact

As competition in international and national markets intensifies, it is important to create a system to protect economic actors from potential threats and adverse factors. To solve these issues, it is necessary to ensure the effective functioning of the insurance market, which is one of the important components of financial security. Without the developed insurance market, it will be impossible to ensure the social and economic progress of the country, its corporate security, welfare etc. The current state of the world insurance market has certain features, which makes it possible to adapt to the change of the modern world and improve the work of the insurance industry. To create a clear insurance market, it is necessary to develop an effective policy as to the insurance activities of both the insurer and the reinsurers, as well as to establish solvency insurance systems. The development of the insurance market is accompanied by many economic, regulatory, organizational, methodological and personnel issues. The publication is aimed at studying and distinguishing the peculiarities of development of the world market of insurance services. On the basis of studying the works of scholars, the main features of the modern insurance market are provided; key signs of the insurance industry are presented; statistical information on trends in the insurance market development during 2019 in the following regions: North and Latin America, Western Europe, Asia, European developing countries. The impact of COVID-19 on the state of the insurance industry in Europe has been characterized. As result of studying the key trends in the future development of the insurance market, the main components that are necessary for the formation of an effective policy of insurance companies in the context of COVID-19 have been formed as follows: digitalization, innovation, analytics, feedback.

scholarly journals The Impact of Directors’ and Officers’ Liability Insurance on Corporate Performance: An Empirical Evidence from the Data of Chinese Listed Financial Enterprises

2020 ◽  
Vol 7 (1) ◽  
pp. 35-45
Author(s):  
Zhe Sun
Keyword(s):  
Significant Positive Correlation ◽  
Corporate Performance ◽  
Liability Insurance ◽  
Insurance Companies ◽  
Significant Positive Effect ◽  
Factors Affecting ◽  
Directors And Officers ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

 Based on data of the listed banks and insurance companies from 2011-2016, this paper studies the factors affecting directors’ and officers’ liability insurance, the relationship between directors’ and officers’ liability insurance and corporate performance. Empirical research shows that there is a significant positive correlation between the company’s asset-liability ratio, corporate performance and directors’ and officers’ liability insurance. Directors’ and officers’ liability insurance has a significant positive effect on corporate performance of listed banks and insurance companies. The empirical findings of this paper will help to strengthen the understanding of directors’ and officers’ liability insurance in bank and insurance companies and promote the widespread use of directors’ and officers’ liability insurance in the future.

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