A new optimisation approach to assess optimal asset allocation in European non-life insurance companies

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.

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How to derive optimal guarantee levels in participating life insurance contracts

The Journal of Risk Finance ◽

10.1108/jrf-07-2018-0099 ◽

2019 ◽

Vol 20 (5) ◽

pp. 445-469 ◽

Cited By ~ 2

Author(s):

Alexander Braun ◽

Marius Fischer ◽

Hato Schmeiser

Keyword(s):

Interest Rate ◽

Interest Rates ◽

Life Insurance ◽

Asset Allocation ◽

Equity Capital ◽

Insurance Companies ◽

Insurance Company ◽

Content Type ◽

Contract Duration ◽

The Interest Rate

Purpose The purpose of this paper is to show how an insurance company can maximize the policyholder’s utility by setting the level of the interest rate guarantee in line with his preferences. Design/methodology/approach The authors develop a general model of life insurance, taking stochastic interest rates, early default and regular premium payments into account. Furthermore, the authors assume that equity holders must receive risk-adequate returns on their initial equity contribution and that the insurance company has to maintain a solvency restriction. Findings The findings show that the optimal level for the interest rate guarantee is in general far below the maximum value typically set by the supervisory authorities and insurance companies. Originality/value The authors conclude that the approach of deviating from the maximum interest rate guarantee level given by the regulatory requirements can create additional value for the rational policyholder. In contrast to Schmeiser and Wagner (2014), the second finding shows that the interest rate guarantee embedded in a life insurance product becomes less attractive compared to a pure investment in the underlying asset portfolio to the policyholder when the guarantee level is lowered too far or the contract duration is short. They also refute Schmeiser and Wagner (2014) by showing that the equity capital required by the insurance company increases with the level of the guarantee, even if the insurer is flexible with respect to its asset allocation. The last finding is that a policyholder with higher risk aversion does not generally prefer a higher guarantee level.

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A Comparative Analysis on Customer Relationship Management in Public Sector and Private Sector Life Insurance Companies

Global Journal For Research Analysis ◽

10.15373/22778160/mar2014/29 ◽

2012 ◽

Vol 3 (3) ◽

pp. 85-87

Author(s):

CATHERINE NIRMALA RAO ◽

Keyword(s):

Comparative Analysis ◽

Public Sector ◽

Private Sector ◽

Customer Relationship Management ◽

Life Insurance ◽

Relationship Management ◽

Customer Relationship ◽

Insurance Companies

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The Effect of Investments and Risk Based Capital (RBC) of Tabarru Funds on Company (Case Study of Sharia Insurance in Indonesia for 2014-2019)

International Journal of Nusantara Islam ◽

10.15575/ijni.v8i1.8933 ◽

2020 ◽

Vol 8 (1) ◽

pp. 87-97

Author(s):

Nana Diana ◽

Tati Apriani

Keyword(s):

Life Insurance ◽

Statistical Tests ◽

Linear Regression Analysis ◽

Sampling Technique ◽

Multiple Linear Regression Analysis ◽

Insurance Companies ◽

Coefficient Of Determination ◽

Verification Method ◽

Investment Returns ◽

The Government

This study aims to examine the influence of investment returns and Risk Based Capital (RBC) Tabarru Funds to the profit of sharia life insurance in Indonesia from 2014-2019. This study The type of this research is quantitative research with descriptive verification as a method. This research method uses descriptive verification method with quantitative approach. The data used in this study were sourced from the financial statements of Islamic life insurance companies in Indonesia for the 2014-2019 period. Then the data obtained were analyzed using multiple linear regression analysis and hypothesis testing consisting of t test and f test with the help of SPSS 21 software. The sampling technique uses non probability sampling with purposive sampling technique. Based on the results of the study it can be seen that the development of investment returns on Sharia Life Insurance in Indonesia has fluctuated and even suffered losses. While the development of Risk Based Capital (RBC) has increased and decreased but overall above 120% as determined by the government. Likewise, the profits earned in each year fluctuate. The results of statistical tests show that investment results partially have a positive effect on profit and Risk Based Capital (RBC) of Tabarru funds partially has a negative effect on profit. Simultaneously investment return and Risk Based Capital (RBC) affect on profit. In addition, the results of the coefficient of determination (R2) were obtained which obtained a value of 81%. This shows that the variable investment returns and Risk Based Capital (RBC) can affect earnings by 81% and the remaining 19% is influenced by other variables not used in this study.

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