scholarly journals MODELLING OF INSURANCE COVERAGE CONTINUITY PROVIDING IN MINING INDUSTRY IN CRISIS

2021 ◽  
Vol 2 (37) ◽  
pp. 287-297
Author(s):  
A. Cherep ◽  
O. Cherep ◽  
I. Kisilyova ◽  
Yu. Shvets
Keyword(s):  
Mathematical Model ◽  
Negative Impact ◽  
Insurance Premium ◽  
Insurance Companies ◽  
Insurance Fund ◽  
Insurance Company ◽  
Investment Activity ◽  
Dynamic Mathematical Model ◽  
Bankruptcy Probability ◽  
Probability Modelling

BANKRUPTCY PROBABILITY MODELLING OF INSURANCE COMPANIES IN CRISIS Abstract. To develop scientific and methodological foundations, for creating an dynamic mathematical model of insurance company solvency (bankruptcy probability) considering interest rate and inflation ratio. The study used the general scientific and special methods such as: the method of critical analysis, scientific abstraction and generalization of scientific expertise of recent theoretical studies, system-integrated approach, method of dynamic mathematical modeling. Elaboration of dynamic mathematical model of bankruptcy probability modelling considering inflation (as inflation has negative impact on all aspects of insurance business including insurance reserves) and rate of interest. The peculiarities of insurance companies investment activity have been defined. The estimation of insurance premium that ensures abequate insurance fund value formation, i.e. insurance company solvency formation has been performed. Insurance tariff and supplement value correspondent to defined probability of insurance company bankruptcy have been defined. Methodological approaches of insurance companies solvency (bankruptcy probability) modelling were further developed. The dynamic mathematical model of bankruptcy probability considering inflation and rate of interest has been proposed. Theoretical study was developed to the level of specific techniques and suggestions for improvement of the estimation and prognozing of insurance companies solvency and could be used in strategic, current and operational planning. A comprehensive methodology of supplement estimation allows to respond to the changing market situation by changing the values of insurance tariffs. Keywords: insurance organization, dynamic model, probability of bankruptcy, inflation, rate of interest. JEL Сlassification C15, G22, L6, H12 Formulas: 36; fig.: 0; tabl.: 0; bibl.: 12.

scholarly journals INCREASING THE COMPETITIVENESS OF INSURANCE COMPANY PRODUCTS AND SERVICES USING ECONOMIC AND MATHEMATICAL MODELING METHODS

2021 ◽  
Author(s):  
Mykhailo Demydenko ◽  
Ihor Pistunov
Keyword(s):  
Mathematical Model ◽  
Social Activity ◽  
Insurance Companies ◽  
Comprehensive System ◽  
Insurance Company ◽  
Competitive Advantages ◽  
Insurance Policy ◽  
Insurance Policies ◽  
The Impact

The competitiveness of an insurance company depends on the competitiveness of the products and services it introduces in the market. The competitive advantages of the insurance company are expressed in the attractiveness and competitiveness of insurance policies. An economic and mathematical model of increasing the competitiveness of the insurance company is proposed, which allows to calculate the integrated indicator of competitiveness of the insurance policy based on a comprehensive system of indicators characterizing the reliability of the insurance company, quality of its services, competitiveness, social activity. To analyze the impact of these indicators on the competitiveness of the insurance policy and identify areas for improving the efficiency and competitiveness of the insurance company. The competitiveness of an insurance company depends on the competitiveness of the products and services it introduces in the market. The assessment of the quality of insurance company services is compliance with the needs, requirements, and insurance interests of customers. This assessment is performed each time an individual client chooses to cooperate with an insurance company that meets his insurance interests and wishes. Therefore, the overall competitiveness of the enterprise depends on the competitiveness of products and services offered on the market. The competitive advantages of the insurance company are expressed in the attractiveness and competitiveness of insurance policies. The insurance market in recent years has shown consistently high growth, which makes it attractive for doing business. In these conditions, the task of modeling the activities of the insurance company in a highly competitive market environment becomes relevant. A mathematical model of increasing the competitiveness of the insurance company is proposed, which allows to calculate the integrated indicator of competitiveness of the insurance policy based on a comprehensive system of indicators characterizing the reliability of the insurance company, quality of its services, competitiveness, social activity. With the proposed model, insurance companies can objectively assess their weaknesses and strengths to ensure continuous growth and decent competition in a competitive market environment. The model allows you to select performance indicators and perform modeling and determine the consequences of changes in this indicator, analyze the impact of these indicators on the competitiveness of insurance policies and identify areas for improving the efficiency and competitiveness of the insurance company. By conducting such experiments, insurance companies can make more informed choices and decisions, analyze areas of competitiveness, and more efficiently allocate resources.

scholarly journals INNOVATIVE MANAGEMENT STRATEGIES BY ACTIVITIES OF INSURANCE COMPANIES: INTERNATIONAL AND NATIONAL CONTEXT

2021 ◽  
pp. 65-70
Author(s):  
Vilenchuk O.
Keyword(s):  
Business Processes ◽  
Insurance Coverage ◽  
Management Strategies ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Investment Activity ◽  
Innovative Strategies ◽  
Innovative Management

This review article is devoted to the study of innovative strategies for managing the activities of insurance companies. In the condi-tions of risky environment, rather high probability occurrence of threats of natural and technogenic character, problems concerning the necessity of a scientific substantiation of the process of the insurance market stakeholders’ interaction aggravate. It is established that insurance in the world economic space is an indispensable financial and economic tool for neutralizing a variety of risks, especially given today’s the socio-economic, financial, epidemiological dangers. It is proved that despite the key parameters’ positive dynamics of the Ukrainian insurance market development for 2009-2019, there is a need to intensify business and investment activity of its participants. The competitive environment of the insurance market requires insurance companies to implement innovative management strategies focused primarily on solving two interrelated problems: firstly, the expansion of property risks’ insurance coverage, as well as risks related to citizens’ life, health and ability to work, secondly, the formation of the insurers’ solvency and ensuring an acceptable level of insurance operations’ profitability in terms of certain types of insurance. It is determined that one of the primary tasks of the insurance company’s management is the management of its business processes aimed at forming a model of customer-oriented behaviour in relation to potential customers. The article emphasizes the need to use a variety of innovative management strategies to achieve medium-term and long-term goals of the company in the insurance market. In particular, the expediency of diversification and the use of alternative pricing strategies for insurance services for long-term and general types of insurance is argued. Proposals aimed at digitalization of the insurance market and wide application of FinTech technologies in the field of insurance services are formulated: automated underwriting, IOT-technologies; blockchain in insurance. Summarizing the results of the study, the author’s vision of the further insurance relations’ functioning of in society is specified. Keywords: risks, insurance company, insurers, insurance protection, insurance market stakeholders, management. Статтю присвячено дослідженню інноваційних стратегій управління діяльністю страхових компаній. В умовах ризикогенного середовища, досить високої ймовірності виникнення загроз природного та техногенного характеру загострюються проблеми щодо необхідності наукового обґрунтування процесу взаємодії стейкхолдерів страхового ринку. Аргументовано, що страхування у світовому економічному просторі є незамінним фінансово-економічним інструментом нейтралізації найрізноманітніших ризиків, особливо зважаючи на соціально-економічні, фінансові та епідеміологічні небезпеки сучасності. Визначено, що одним із першочергових завдань менеджменту страхової компанії є управління її бізнес-процесами, спрямованими на формування мо-делі клієнтоорієнтованості відносно потенційних клієнтів. Наголошено на необхідності використання різноманітних інноваційних стратегій управління для досягнення середньострокових та довгострокових цілей компанії на страховому ринку. Зокрема, аргу-ментовано доцільність здійснення диверсифікації та використання альтернативних стратегій ціноутворення на страхові послуги з довгострокових та загальних видів страхування. Сформульовано пропозиції, спрямовані на цифровізацію страхового ринку та широке застосування FinTech-технологій у сфері страхових послуг: автоматизований андерайтинг, ІОТ-технології; блокчейн у страхуванні. Узагальнюючи результати проведеного дослідження, конкретизовано авторські підходи до подальшого функціонування страхових відносин у суспільстві.Ключові слова: ризики, страхова компанія, страхувальники, страховий захист, стейкхолдери страхового ринку, управління.

scholarly journals The impact of lending on bancassurance activity

2019 ◽  
Vol 13 (1) ◽  
pp. 171-181
Author(s):  
Elda Marzai Abliz
Keyword(s):  
Negative Impact ◽  
Distribution Channel ◽  
Solvency Ii ◽  
Capital Requirements ◽  
Financial Supervision ◽  
Insurance Companies ◽  
Insurance Company ◽  
Customer Base ◽  
Premium Income ◽  
The Impact

Abstract Due to financial crisis, and especially because of prudence in lending (retail, micro, and corporate), banks are looking for new sources of income, and bancasurance is clearly a potential source of revenue. Thus, in the financial market, the interests of two major components of it are met: banks maximize commission income, and insurers make access to the large customer base of banks. Bancassurance is a distribution channel of insurance products through bank branches, bringing important advantages for banks, insurance companies and customers. The main advantage for the bank is that earns fee amount from the insurance company, the insurance company increases customers data base and market share, the client satisfy his financial needs and requests in the same institution. Considering that in Romania, banks and insurers do not provide information on the number of insurances sold via the bancassurance distribution channel, as well as commissions obtained by banks for the insurance sale, to determine the development of bancassurance in Romania, we used the statistical data provided by the National Bank of Romania, on credit growth and data provided by The Financial Supervision Association, on the evolution of gross written premiums. Bancassurance is one of the most important insurance distribution channels, accounting for approximately 36% of the global insurance market, in 2016, Europe’s insurers generated total premium income of €1 189bn and had €10 112bn invested in the economy. Regarding to the risks of bancassurance business for banks and insurers, they mainly concern distinct capital requirements for the banking and insurance systems, which will be covered by the Basel III and Solvency II directives. This paper aims to analyze the influence of credit on the bancassurance activity in the last 5 years in Romania, the economic, political and legal factors that have a negative impact on the development of bancassurance, and also the calculating the correlation coefficient r (Pearson’s coefficient) and his result.

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.

scholarly journals Relationships among Components of Insurance Companies and Services’ Quality

Organizacija ◽  
2014 ◽  
Vol 47 (4) ◽  
pp. 231-244 ◽  
Author(s):  
Urban Šebjan ◽  
Polona Tominc
Keyword(s):  
Structural Equation ◽  
Design Methodology ◽  
Insurance Premium ◽  
Insurance Companies ◽  
Insurance Company ◽  
Research Model ◽  
Customer Perceptions ◽  
Equation Modelling ◽  
Original Contribution ◽  
Intensity Of Competition

Abstract Background and Purpose: An increasing number of insurance companies and the intensity of competition in this field require research on customer perceptions of the components of insurance services and insurance company. The objective of this study was to examine the conceptual model and to study the relationships between customer perceptions of the innovation, reputation, adequacy of premium, and adequacy of information about the coverage of insurance services. Design/Methodology/Approach: The research model was tested with structural equation modelling (SEM) with a sample of 200 Slovenian users of insurance services. Results: The results indicated that higher perceived innovation of insurance company was associated with higher perceived reputation of insurance company. In addition, higher perceived reputation of insurance company was associated with higher perceived adequacy of information about the coverage and the premium for insurance services. The study also found that higher perceived adequacy of premium was associated with higher perceived adequacy of information about the coverage of insurance services. Conclusion: The original contribution of this article is also the highlighting of relationship between perceived reputation of insurance company, perceived adequacy of information about the insurance premium and perceived adequacy of information about the coverage of insurance services.

scholarly journals Pertanggungjawaban Maskapai dan Perusahaan Asuransi terhadap Kematian Penumpang Akibat Kecelakaan Pesawat Terbang

2020 ◽  
Vol 22 (2) ◽  
pp. 279-300
Author(s):  
Stefani Kamajaya ◽  
Fernando Sirait ◽  
Klara Sihombing ◽  
Karenita Situmorang
Keyword(s):  
Research Method ◽  
Government Regulation ◽  
Insurance Premium ◽  
Data Sources ◽  
Insurance Companies ◽  
Insurance Company ◽  
The Public ◽  
Plane Crash ◽  
Legal Remedies

Penelitian ini bertujuan untuk mengetahui tanggung jawab maskapai penerbangan dan perusahaan atas kematian penumpang akibat kecelakaan penumpang. Yang disebabkan bukan kesalahan maskapai. Penelitian ini juga bertujuan untuk mengetahui upaya hukum yang bagaimana dapat dilakukan oleh masyarakat ketika mengalami hal terse-but. Metode penelitian mengunakan deskriptif yuridis, yaitu dengan mendeskripskan aturan perundang-undangan mengenai pertanggungjawaban. Sumber yang digunakan adalah bahan hukum primer dan sekunder. Hasil analisa menunjukkan bahwa maskapai tidak bertanggung jawab membayar ganti kerugian atas kematian penumpang sepanjang maskapai dapat membuktikan kecelakaan tersebut bukan kesalahan maskapai. Asuransi Jasa Raharja bertanggung jawab untuk membayar santunan kepada ahli waris penum-pang yang meninggal karena kecelakaan pesawat baik karena kesalahan maskapai maupun bukan kesalahan maskapai sepanjang sesuai dalam Peraturan Pemerintah Nomor 17 Tahun 1965, asuransi jasa raharja wajib membayar ganti rugi berdasarkan PMK 15 Tahun 2017 karena setiap penumpang sudah membayarkan premi asuransi pada saat membeli karcis/tiket pesawat udara. Liability of Airlines and Insurance Companies Against Passenger Death Because of Flight Accident This study aims to determine the responsibilities of airlines and companies for passenger deaths due to accidents that not caused by airline’s fault, and to determine the legal remedies that can be done by the public when experiencing it. The research method uses descriptive juridical that is by describing the rules of law regarding accountability. Primary and secondary legal data sources is used. The analysis shows that the airline is not responsible for paying compensation for the death of the passenger as long as the airline can prove the accident was not the fault of the airline. Jasa Raharja insurance is responsible for paying compensation to the heirs of passengers who died in a plane crash either because airline fault or not as long as in accordance with Government Regulation No. 17/1965, Jasa Raharja insurance company is required to pay compensation based on PMK 15/2017 because every passenger has paid insurance premium when buying a ticket.

scholarly journals STOCHASTIC MODELLING OF CASH FLOW FOR PERSONAL INSURANCE FUND USING THE CLOUD DATA STORAGE

2018 ◽  
pp. 153-162
Author(s):  
Kseniia Bazilevych ◽  
Mary Mazorchuk ◽  
Yurii Parfeniuk ◽  
Viktoriia Dobriak ◽  
Ievgen Meniailov ◽  
...  
Keyword(s):  
Data Storage ◽  
Cash Flow ◽  
Stochastic Modelling ◽  
Cash Flows ◽  
Insurance Companies ◽  
Estimation Accuracy ◽  
Insurance Fund ◽  
Insurance Company ◽  
Cloud Data ◽  
Cloud Data Storage

In this paper the model and applied information system are proposed for modelling cash flow of insurance funds with use cloud data storage. Cash flow valuation is performed taking into account contextual characteristics of an insured under conditions of stochastic uncertainty. The proposed insurance cash flow model of the financial fund of insurance company allow to account the financial solvency probability based on the analysis of contextual properties of insureds, that increase the estimation accuracy of the modeling cash flows. Also, the model takes into account insurance bonus non-payment during the insurance company operation. In this paper, we propose a structure of an informational system, which is called “Insurance Life”. This system supports downloading and uploading data with the cloud service pCloud according to safety requirements of data. The main results of the research are introduced into practice of the operation of insurance companies in forms of software applications and results of calculations.

scholarly journals Financial sustainability management of the insurance company: case of Ukraine

2018 ◽  
Vol 15 (4) ◽  
pp. 219-228 ◽  
Author(s):  
Ruslana Pikus ◽  
Nataliia Prykaziuk ◽  
Mariia Balytska
Keyword(s):  
Negative Impact ◽  
Insurance Companies ◽  
Financial Sustainability ◽  
Investment Risk ◽  
Insurance Company ◽  
Qualitative And Quantitative ◽  
Strategic Market ◽  
The Impact ◽  
Risk Investment ◽  
Further Development

In the current conditions of the Ukrainian economy, which is characterized by crisis phenomena and frequent changes in legislation, the insurance organizations are facing a number of difficulties in maintaining their financial sustainability. Moreover, these processes take place under the increased requirements for solvency of insurers. However, a significant part of domestic insurance companies is financially unstable, which is conditioned not only by the lack of funds, but also by the low level of management. This situation hinders the further development of the insurance market in Ukraine and has a negative impact on all areas of the domestic financial system and prevents it from successful integration into the European financial field. In order to address this problem, it is necessary to distinguish the key groups of risks that affect the financial sustainability of insurance organizations, among which there are the following: insurance, strategic, market risk, risk of inefficient capital structure, risk of limiting the insurance company’s liquidity, tax risk, investment risk, operational risk, the risk of ineffective organizational structure of the enterprise, and information risk. It should be noted that under conditions of changing environment, the impact of these risks only increases, and therefore the task of minimizing the impact of these risks on the activities of insurance companies is highly important. Accordingly, the authors of the article proposed a four-stage strategy to manage the financial sustainability of the insurance company, the purpose of which is to identify the risks of limiting the insurer’s financial sustainability, their qualitative and quantitative assessment, as well as the development and implementation of appropriate measures to minimize and eliminate unacceptable consequences.

scholarly journals INTEGRATED MODELS FOR EVALUATING THE PROBABILITY OF INSURER BANKRUPTCY IN MODERN CONDITIONS

2017 ◽  
pp. 99-110
Author(s):  
Nataliia NALUKOVA ◽  
Mykhailo HUZELA
Keyword(s):  
Insurance Companies ◽  
Insurance Company ◽  
Probability Models ◽  
The Real ◽  
Doing Business ◽  
Probability Of Bankruptcy ◽  
Bankruptcy Probability ◽  
The One ◽  
Real State ◽  
Critical Moments

Introduction. Assessment of the probability of insurance companies insolvency in modem conditions will determine not only the real state of doing business, but also identify critical moments in the activities ofinsurers. Purpose. The purpose of the article is to assess the probability of bankruptcy of a functioning insurance company on the basis ofmodels used in world practice. Results. The authors argue that the assessment of the probability of insurance companies insolvency in modern economic conditions will determine not only the real state of doing business, but also identify critical moments in the activities ofinsurers. The basis of the analysis of the insurer's predisposition to bankruptcy is discriminant bankruptcy probability models used by both ordinary enterprises and insurers. Based on the one-factor discriminant analysis, a model is developed which enables us to assess the general state of the insurer according to individual criteria-indicators, without using weight of coefficients and values of indicators.. An overview of the methods forassessing the probability of bankruptcy and their comparative characteristics is reviewed, the factors of problems ofthe use offoreign discriminatorymodels in Ukraine are determined. Conclusion. A critical assessment ofthe prevailing in foreign practice and the theory methodological approaches to the analysis of the bankruptcy probability allows us to conclude that some models are contradictory because, with the simultaneous use of them, it is possible to obtain conclusions opposite to each otherregarding the bankruptcyprobabilityofa particularentity. Despite some disadvantages, these models have high probability of evaluation and are very effective in practice. Discriminant models can be used to confirm the results both separately and in aggregate, however, with a certain correction. The most significant relationship between models in dynamics, because one-time analysis may not give correct results. All models contain a set ofdiffer-entindicators thathave territorial specificity, and none ofthem can claim to be universal.

EUROPEAN VECTOR OF DEVELOPMENT OF THE INSURANCE COMPANIES INVESTMENT ACTIVITY

2017 ◽  
pp. 84-87
Author(s):  
Viktor Smoliak
Keyword(s):  
Associate Professor ◽  
Insurance Market ◽  
Insurance Companies ◽  
Market Development ◽  
Insurance Company ◽  
Investment Activity ◽  
European Insurance ◽  
Simon Kuznets

UDC 368   Viktor Smoliak, PhD, Associate Professor. Kharkiv National Simon Kuznets University of Economics. European vector of development of the insurance companies investment activity. The article investigates Ukrainian insurance market problems and peculiarities of the insurance companies investment activity. The author defined the differences between Ukrainian insurance companies investment activity and European insurance companies investment activity. There are justified the main directions of development of Ukrainian insurance market in the article.   Keywords: insurance, insurance company, investment activity, insurance market, development of insurance.

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