scholarly journals A Statistical Distribution for the Solvency Ratio of Indian Non-life Insurers

2012 ◽  
Vol 3 (2) ◽  
pp. 97
Author(s):  
R. K. Sinha ◽  
M. M. Nizamuddin ◽  
Ameer Hassan
Keyword(s):  
Public Sector ◽  
Life Insurance ◽  
Statistical Distribution ◽  
Financial Ratios ◽  
Insurance Companies ◽  
Insurance Company ◽  
Public And Private ◽  
The Public ◽  
Burr Distribution ◽  
Solvency Ratio

The Indian Insurance Industry, which was privatized in the year 1999, has witnessed steep growth in terms of its business statistics, such as number of insurance companies, number of policies issued, aggregate premium underwritten, etc. However, many of the insurers are still struggling to break even after a decade of their business operations. The insurance companies are different from other companies, which take longer time to stabilize. The progress of stabilization of the new companies can be measured in many ways. One way is to analyze the level of volatility in the various financial ratios, in addition to their average levels. It may be generally expected that an older company will have lower volatility in its financial ratios than the new ones. This is because of better understating of business and knowledge gained over years of business. This is one of the indicators for judging the stabilization status of the company. The solvency ratio is one of the most important financial ratios for an insurer, which signals the overall health of the company. Accordingly, it is an important figure, which any stakeholder in the industry would like to watch closely. It is generally monitored either on a quarterly or an annual basis depending on the regulatory requirements of the specific country. Insurance companies which may be in a good financial position at a given point of time may fall short of the solvency margin requirement in the next period because of uncertainties and unforeseen factors. Although it is difficult to assess when such a situation for an insurance company could happens, it remains an important task to get best estimates possible with the available data and other factors. The paper attempts to study and analyze the solvency ratio of the non-life insurance companies in India and model it through a statistical distribution. It examines the differentials in its trend and movement in the public and private insurance companies (as public sector companies are very old companies, as compared to the private ones), amongst the private insurers and across the time. It does not find significant difference in the public and private insurers, as the public sector companies too appears to struggle with high level of volatility in their solvency ratios despite their long years of business experience. It is found that the 3- parameter Burr distribution explains our quarterly time-series dataset of solvency ratio appropriately. Given the observations are independently and identically distributed and the Burr distribution explains the dataset appropriately, the paper reveals that the default cases are expected to be more than the actual cases, as observed so far. In the last, the paper suggests further studies on this, which may be taken up. For example, it suggests that a multiple linear regression analysis could be carried out to explain the variation in the solvency ratios through few independent variables and identifies them, which are likely to impact the solvency ratio of non-life insurance companies.

scholarly journals A STUDY ON PREFERENCE OF POLICYHOLDERS ABOUT PUBLIC AND PRIVATE LIFE INSURANCE COMPANIES IN TIRUNELVELI DISTRICT

2018 ◽  
Vol 6 (4) ◽  
pp. 105-110
Author(s):  
I. Meenakshi
Keyword(s):  
Public Sector ◽  
Life Insurance ◽  
Private Insurance ◽  
Marketing Strategies ◽  
Private Life ◽  
Insurance Companies ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Public And Private ◽  
New Policies

There are currently, a total of 24 life insurance companies in India. Of these, Life Insurance Corporation of India (LIC) is the only public sector insurance company. All others are private insurance companies. The Life Insurance Corporation of India (LIC) is the largest life insurance company in India and also the country's largest investor. More and more new private insurance companies are coming up year after year. And, these new and private life insurance companies adopt aggressive marketing strategies to introduce their products and to tap the potential policyholders. It is witnessed that new policies like ULIPs are introduced by these new private life insurance companies. It is in this concept this study has been undertaken to assess and analyze the preference of policyholders towards insurance services offered by public and private life insurance companies in Tirunelveli district.

scholarly journals Complaint Redressal Practices in Public and Private Insurance Companies

2019 ◽  
Vol 8 (12S2) ◽  
pp. 369-374
Keyword(s):  
Public Sector ◽  
Life Insurance ◽  
Insurance Industry ◽  
Private Insurance ◽  
Private Life ◽  
Insurance Companies ◽  
Public And Private ◽  
The Public ◽  
Life Insurance Industry ◽  
Regulations And Guidelines

The life insurance industry of India has 23 licenses -holders running their business in this sector. The Life Insurance Corporation of India (LICI), which is the only player in the public sector, the remaining area is covered by the 22 private sector companies. IRDAI has taken initiatives to provide effective grievance handling machinery to address the grievances of policyholders. Consumer dispute Redressal agency is efficient for handling complaints and easily accessible. This paper examines the regulations and guidelines framed by IRDAI for effective grievance handling and the study would provide some insights into the areas, specifically status of grievances in public and private life insurance companies (LIC, SBI, HDFC, Reliance Life and Bajaj Allianz) and the functioning of consumer dispute Redressal agencies of life insurance sectors.

scholarly journals Opinion Survey of Life Insurance Policy holders in Eluru of West Godavari District

2021 ◽  
pp. 631-638
Author(s):  
Dr. R. S. N. Sharma
Keyword(s):  
Life Insurance ◽  
Insurance Companies ◽  
Primary Data ◽  
Public Confidence ◽  
Insurance Company ◽  
Insurance Policy ◽  
Opinion Survey ◽  
Life Insurance Company ◽  
The Public ◽  
The Family

Insurance is nothing but giving assurance for recovery of Loss. If Head of the family dies unfortunately, suddenly due to any reason, the dependent family members may land in troubles and may not in a position to earn their livelihood. If the life of that head of the family is insured, certain amount of money will be paid to the legal heirs which they can use it for their needs. In this context which life insurance company is to be considered for taking the life policy is a problem. Agents of different life insurance companies approach them for their profession. All the public may be in dilemma in choosing the life insurance company. They may take different policies of different companies. At this juncture, the researcher has thought it necessary to conduct survey in the selected locations to know more about the awareness of people with regard to life insurance and to know about which life insurance company has more public confidence. For this the study has been conducted basing on primary data collected directly from the respondents. The collected information has been tabulated, graphically represented and analysed with the help of calculations and finally conclusions drawn.

scholarly journals Applying The Principle of Insurance on The Credit Life Insurance in The Consumer Lending

Rechtsidee ◽  
2017 ◽  
Vol 4 (1) ◽  
Author(s):  
Faizal Kurniawan ◽  
Prawitra Thalib ◽  
Hilda Yunita Sabrie
Keyword(s):  
Life Insurance ◽  
Foreign Currency ◽  
Consumer Credit ◽  
Third Party ◽  
Insurance Companies ◽  
Insurance Company ◽  
The Public ◽  
Consumer Lending ◽  
Oil Exports

The specific task of the commercial banks are as follows: the bank must distribute most of the credit for developing the activities of the cooperatives and entrepreneurs economically weak or small entrepreneurs, the public banking that provides credit in foreign currency required to distribute some the foreign currency credit to finance the activities of non-oil exports and required to perform an assessment of the fulfillment the terms of the feasibility of the debtor's business. In carrying out its functions, the bank must still run banking principles contained in the articles contained in the Banking Act. It is often in distribute the credit, the bank requires the third party, such as the insurance companies. The purpose of insurance companies is to minimize the risks that may be experienced by the bank as debtors failed to pay. The bank is very concerned with their insurance company. There are various types of loans that cannot be separated by the insurance, this study focuses on consumer credit in PT. Bank Jatim. In practice, especially consumer credit lending cannot be separated from the role of the insurance companies. But in operating the bussiness,  the insurance companies should also continue to apply the principles of general insurance. The application of the insurance principle is intended that no aggrieved parties. Generally speaking, there will be a conflict of interest between the application of the principles of insurance carried by the insurance company as an insurer with the business aspect of the field of insurance and banking. 

Comparing the Roles of PR Practitioners in the Public and Private Sectors in the UAE

2014 ◽  
Vol 5 (3) ◽  
pp. 64-76
Author(s):  
Badreya Al-Jenaibi
Keyword(s):  
Public Sector ◽  
Virtual World ◽  
Research Problem ◽  
Insurance Companies ◽  
Public And Private ◽  
Advanced Level ◽  
Face To Face ◽  
The Public ◽  
Private Banks ◽  
Depth Interviews

This paper compares public relation practices of experts working in public and private sectors of the UAE based firms. It casts light on the challenges that practitioners face in both sectors and the necessary skill set they need to excel in their field. Qualitative research techniques were used to get insights into the research problem. Qualitative questionnaires and in depth interviews with the target respondents were conducted. Questionnaires were filled by government institutions, public sector insurance companies, schools, private banks, and other organizations. In depth face to face interviews and qualitative questionnaire were used in this study. Out of 60 questionnaires, 30 were distributed and collected face to face in 15 different workplaces in the public sector and 30 were distributed in 12 workplaces in the private sector. The research concluded that the PR sector is well developed in private firms who cater to their publics at an advanced level using the tools and devices necessary for physical and virtual world practice. When it comes to the public sector, PR departments and PR practitioners were not very aware of the contemporary PR concept, and they need better qualifications to improve their PR practices.

Indian Life Insurance Market and Corporate Performances: A Study of Selected Firms

2016 ◽  
Vol 4 (1) ◽  
Author(s):  
Joy Chakraborty ◽  
Partha Pratim Sengupta
Keyword(s):  
Market Share ◽  
Life Insurance ◽  
Market Concentration ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Insurance Sector ◽  
Life Insurers ◽  
Company Limited

In the pre-reform era, Life Insurance Corporation of India (LICI) dominated the Indian life insurance market with a market share close to 100 percent. But the situation drastically changed since the enactment of the IRDA Act in 1999. At the end of the FY 2012-13, the market share of LICI stood at around 73 percent with the number of players having risen to 24 in the countrys life insurance sector. One of the reasons for such a decline in the market share of LICI during the post-reform period could be attributed to the increasing competition prevailing in the countrys life insurance sector. At the same time, the liberalization of the life insurance sector for private participation has eventually raised issues about ensuring sound financial performance and solvency of the life insurance companies besides protection of the interest of policyholders. The present study is an attempt to evaluate and compare the financial performances, solvency, and the market concentration of the four leading life insurers in India namely the Life Insurance Corporation of India (LICI), ICICI Prudential Life Insurance Company Limited (ICICI PruLife), HDFC Standard Life Insurance Company Limited (HDFC Standard), and SBI Life Insurance Company Limited (SBI Life), over a span of five successive FYs 2008-09 to 2012-13. In this regard, the CARAMELS model has been used to evaluate the performances of the selected life insurers, based on the Financial Soundness Indicators (FSIs) as published by IMF. In addition to this, the Solvency and the Market Concentration Analyses were also presented for the selected life insurers for the given period. The present study revealed the preexisting dominance of LICI even after 15 years since the privatization of the countrys life insurance sector.

scholarly journals Long-term effectiveness of elderly health care voucher scheme strategies: a system dynamics simulation analysis

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Ka Chun Chong ◽  
Hong Fung ◽  
Carrie Ho Kwan Yam ◽  
Patsy Yuen Kwan Chau ◽  
Tsz Yu Chow ◽  
...  
Keyword(s):  
Primary Care ◽  
Chronic Disease ◽  
Public Sector ◽  
System Dynamics ◽  
The Elderly ◽  
Healthcare Services ◽  
Dynamics Simulation ◽  
Public And Private ◽  
The Public ◽  
The Impact

Abstract Background The elderly healthcare voucher (EHCV) scheme is expected to lead to an increase in the number of elderly people selecting private primary healthcare services and reduce reliance on the public sector in Hong Kong. However, studies thus far have reported that this scheme has not received satisfactory responses. In this study, we examined changes in the ratio of visits between public and private doctors in primary care (to measure reliance on the public sector) for different strategic scenarios in the EHCV scheme. Methods Based on comments from an expert panel, a system dynamics model was formulated to simulate the impact of various enhanced strategies in the scheme: increasing voucher amounts, lowering the age eligibility, and designating vouchers for chronic conditions follow-up. Data and statistics for the model calibration were collected from various sources. Results The simulation results show that the current EHCV scheme is unable to reduce the utilization of public healthcare services, as well as the ratio of visits between public and private primary care among the local aging population. When comparing three different tested scenarios, even if the increase in the annual voucher amount could be maintained at the current pace or the age eligibility can be lowered to include those aged 60 years, the impact on shifts from public-to-private utilization were insignificant. The public-to-private ratio could only be marginally reduced from 0.74 to 0.64 in the first several years. Nevertheless, introducing a chronic disease-oriented voucher could result in a significant drop of 0.50 in the public-to-private ratio during the early implementation phase. However, the effect could not be maintained for an extended period. Conclusions Our findings will assist officials in improving the design of the EHCV scheme, within the wider context of promoting primary care among the elderly. We suggest that an additional chronic disease-oriented voucher can serve as an alternative strategy. The scheme must be redesigned to address more specific objectives or provide a separate voucher that promotes under-utilized healthcare services (e.g., preventive care), instead of services designed for unspecified reasons, which may lead to concerns regarding exploitation.

Relationship between CSR motivations and corporate social performance: a study in the power industry in India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moumita Acharyya ◽  
Tanuja Agarwala
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Power Sector ◽  
Public And Private ◽  
Content Type ◽  
The Public ◽  
Self Interest ◽  
Public And Private Sector

PurposeThe paper aims to understand the different motivations / reasons for engaging in CSR initiatives by the organizations. In addition, the study also examines the relationship between CSR motivations and corporate social performance (CSP).Design/methodology/approachThe data were collected from two power sector organizations: one was a private sector firm and the other was a public sector firm. A comparative analysis of the variables with respect to private and public sector organizations was conducted. A questionnaire survey was administered among 370 employees working in the power sector, with 199 executives from public sector and 171 from private sector.Findings“Philanthropic” motivation emerged as the most dominant CSR motivation among both the public and private sector firms. The private sector firm was found to be significantly higher with respect to “philanthropic”, “enlightened self-interest” and “normative” CSR motivations when compared with the public sector firms. Findings suggest that public and private sector firms differed significantly on four CSR motivations, namely, “philanthropic”, “enlightened self-interest”, “normative” and “coercive”. The CSP score was significantly different among the two power sector firms of public and private sectors. The private sector firm had a higher CSP level than the public sector undertaking.Research limitations/implicationsFurther studies in the domain need to address differences in CSR motivations and CSP across other sectors to understand the role of industry characteristics in influencing social development targets of organizations. Research also needs to focus on demonstrating the relationship between CSP and financial performance of the firms. Further, the HR outcomes of CSR initiatives and measurement of CSP indicators, such as attracting and retaining talent, employee commitment and organizational climate factors, need to be assessed.Originality/valueThe social issues are now directly linked with the business model to ensure consistency and community development. The results reveal a need for “enlightened self-interest” which is the second dominant CSR motivation among the organizations. The study makes a novel contribution by determining that competitive and coercive motivations are not functional as part of organizational CSR strategy. CSR can never be forced as the very idea is to do social good. Eventually, the CSR approach demands a commitment from within. The organizations need to emphasize more voluntary engagement of employees and go beyond statutory requirements for realizing the true CSR benefits.

Mapping public value processes

2014 ◽  
Vol 27 (4) ◽  
pp. 334-352 ◽  
Author(s):  
John Alford ◽  
Sophie Yates
Keyword(s):  
Public Sector ◽  
Child Nutrition ◽  
Process Mapping ◽  
Public Value ◽  
Public And Private ◽  
Content Type ◽  
The Public ◽  
Public Managers ◽  
Big Picture ◽  
Comprehensive Framework

Purpose – The purpose of this paper is to add to the analytic toolkit of public sector practitioners by outlining a framework called Public Value Process Mapping (PVPM). This approach is designed to be more comprehensive than extant frameworks in either the private or public sectors, encapsulating multiple dimensions of productive processes. Design/methodology/approach – This paper explores the public administration and management literature to identify the major frameworks for visualising complex systems or processes, and a series of dimensions against which they can be compared. It then puts forward a more comprehensive framework – PVPM – and demonstrates its possible use with the example of Indigenous child nutrition in remote Australia. The benefits and limitations of the technique are then considered. Findings – First, extant process mapping frameworks each have some but not all of the features necessary to encompass certain dimensions of generic or public sector processes, such as: service-dominant logic; external as well internal providers; public and private value; and state coercive power. Second, PVPM can encompass the various dimensions more comprehensively, enabling visualisation of both the big picture and the fine detail of public value-creating processes. Third, PVPM has benefits – such as helping unearth opportunities or culprits affecting processes – as well as limitations – such as demonstrating causation and delineating the boundaries of maps. Practical implications – PVPM has a number of uses for policy analysts and public managers: it keeps the focus on outcomes; it can unearth a variety of processes and actors, some of them not immediately obvious; it can help to identify key processes and actors; it can help to identify the “real” culprits behind negative outcomes; and it highlights situations where multiple causes are at work. Originality/value – This approach, which draws on a number of precursors but constitutes a novel technique in the public sector context, enables the identification and to some extent the comprehension of a broader range of causal factors and actors. This heightens the possibility of imagining innovative solutions to difficult public policy issues, and alternative ways of delivering public services.

Sign in / Sign up

Export Citation Format

Share Document