scholarly journals ANALYSIS OF COMPETITIVE POSITIONS OF INSURANCE COMPANIES IN THE NON-LIFE INSURANCE MARKET IN UKRAINE

2019 ◽  
pp. 88-94
Author(s):  
O. Pakhnenko ◽  
O. Zhuravka ◽  
V. Podhorna ◽  
A. Sukhomlyn
Keyword(s):  
Market Share ◽  
Life Insurance ◽  
Motor Vehicle ◽  
Market Concentration ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Insurance Premiums ◽  
Property Insurance ◽  
Financial Condition

The paper explores the practical aspects of forming a competitive environment in the non-life insurance market of Ukraine and analyzes the competitiveness and financial performance of leading insurance companies. Based on the analysis of non-life insurance market concentration indicators, the authors concluded that there is no clear leader in this market, the level of market concentration is negligible. Based on the analysis of non-life insurance market leaders by volume of gross insurance premiums in the whole market and by main types of non-life insurance (CASCO, motor vehicle liability insurance, property insurance, fire and catastrophe risk insurance, CARGO, health insurance) the authors found that the leadership of insurance companies in the market does not mean their leadership in all types of non-life insurance; some insurance companies specialize in certain types of insurance and not being leaders in the insurance market at all occupy leading positions in certain segments of non-life insurance market. In order to provide a general assessment of the competitiveness of individual insurance companies in the non-life insurance market, the following indicators were selected: the volume of gross insurance premiums, gross insurance payments, insurance reserves and the amount of equity. In order to assess the size of market share of an individual insurance company in a more objective way, it is suggested to calculate the average share of the insurance company. The calculations made it possible to identify the leaders of the non-life insurance market in 2018 and to explore the dynamics of changes in their competitive position during 2016-2018. For the three insurance companies that have been identified as the leaders of the Ukrainian market non-life insurance in 2018 (“UNIKA”, “AXA Insurance” and “PZU Ukraine”), the authors analyzed the main indicators of their financial condition, namely the profitability of insurance services, profitability of sales, return on assets, return on equity, overall liquidity, absolute liquidity and autonomy. It was found that all the analyzed insurance companies are profitable, however, among the three leading Ukrainian insurance companies, the most effective in 2018 was the insurance company “PZU Ukraine” and the least profitable – “UNIKA”. Keywords: competitiveness, insurance company, market concentration, market share, competition.

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 Life insurance: features, present state and problems

2021 ◽  
Vol 11/2 (-) ◽  
pp. 29-33
Author(s):  
Oksana PONOMAROVA ◽  
Viktoriia SYNYPOSTOL ◽  
Alina SHTANKO
Keyword(s):  
Life Insurance ◽  
Social Protection ◽  
Insurance Market ◽  
Insurance Companies ◽  
Social Stability ◽  
Insurance Risk ◽  
Insurance Premiums ◽  
Financial Condition ◽  
Inhibiting Factors ◽  
General Insurance

The essence of life insurance, its features and advantages in comparison with other kinds of insurance is considered. Influence of changes of insurance payments on change of level of payments is analyzed and the interrelation between insurance premiums and insurance payments is found out. The forecast for 2021–2023 on insurance premiums and payments accordingly is constructed. In connection with this, the study of the life insurance market in Ukraine and the identification of the main problems of its development is currently quite relevant. Life insurance plays an important role in ensuring security and social stability in the country. Considering the economic essence of life insurance, it should be noted its feature, which is a combination of properties of insurance protection and savings. In this regard, in the general insurance market of the country, its structural segment has specific features in defining the basic concepts of insurance risk and insured event. Yes, insurance risk is based on the unpredictability of the event. The brake on the development of the life insurance market in Ukraine is that the capitalization and financial condition of the vast majority of insurance companies is unsatisfactory and does not ensure their competitiveness even in the domestic market. The limited amount and imperfect structure of financial savings of most insurers prevent them from becoming an effective institution of social protection and investment in the Ukrainian economy. Among the inhibiting factors should also be noted the limited investment activities of insurers. It is defined the basic problems that hinder the development of life insurance in Ukraine.

scholarly journals CONCENTRATION AND COMPETITION RESEARCH. THE INSURANCE MARKET OF UKRAINE

2019 ◽  
pp. 26-35 ◽  
Author(s):  
O. Zhuravka ◽  
O. Pakhnenko ◽  
A. Sukhomlyn
Keyword(s):  
Life Insurance ◽  
Concentration Level ◽  
Market Concentration ◽  
Insurance Market ◽  
Insurance Companies ◽  
Economic Science ◽  
Insurance Premiums ◽  
The World ◽  
Risk Insurance ◽  
Significant Concentration

The concentration of the insurance market is an objective process that evolves by the trends of the world market laws. In practice, many countries use a whole set of indicators that are developed by the world economic science to estimate the concentration level in different sectors of the economy. Official statistics, unfortunately, give only a fragmentary assessment of the concentration level of the domestic insurance market. The National Financial Services Commission considers two indicators: the concentration ratio and the Herfindahl-Hirschman index. The analysis of these indicators is provided on the whole market and separately on the non-life and Life insurance markets only by the volume of insurance premiums. Such an assessment is very general, and the insurance market of Ukraine remains informationally closed. Studies have shown that the level of market concentration is related to the processes of monopolization and competition. Significant concentration on the life insurance market, which in turn defines it as moderately monopolized and not a significant concentration on the risk insurance market, which has a significant level of competition. However, among a large number of insurance companies in the insurance market other than life insurance, it is possible to single out leaders who, compared to their competitors, have a significant amount of insurance payments and hold a significant share of the market in terms of insurance premiums, assets and what is important for customer - the proper level of payments, which is confirmed by the amount of insurance claims. In the market of risk insurance of Ukraine the leaders are such system-forming insurance companies as «UNIKA», «IG TAS», «ARSENAL UKRAINE», «PZU UKRAINE», «АХА INSURANCE» and «INGO UKRAINE». Key words: insurance market, concentration of insurance market, rating, assets of insurance companies, level of payments, competition.

scholarly journals Directions in the Development of Commercial Insurance in Poland and Lithuania

2014 ◽  
Vol 17 (1) ◽  
pp. 145-165
Author(s):  
Justyna Witkowska ◽  
Aušrinė Lakštutienė
Keyword(s):  
Life Insurance ◽  
Motor Vehicle ◽  
Third Party ◽  
Liability Insurance ◽  
Insurance Market ◽  
Commercial Insurance ◽  
Property Insurance ◽  
Group 3 ◽  
Motor Vehicle Insurance ◽  
Insurance Data

This article analyses trends in the development of the commercial insurance market in Poland and in Lithuania over the last decade. The insurance market changed in the 2002-2011 period. Those changes can be seen in various fields of commercial insurance. Data on the number of insurers, total premiums written, and the trends in claim payments and claim ratios were used to perform a market trend analysis. It should be emphasized that Poland experienced the results of the financial crisis in the insurance market later than Lithuania, which is visible in specific ratios under analysis. In Lithuania, in terms of insurance expenditures, non-life insurance products are definitely more popular, while in Poland life insurance plays the most important role. Poles buy most life insurance from group 1, and Lithuanians from group 3. In the case of non-life insurance, motor vehicle insurance (third-party liability insurance and casco (collision/personal liability insurance)) and property insurance are the leading forms of insurance purchased by both Poles and Lithuanians, as well as other Europeans.

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.

STATE OF CONCENTRATION AND MONOPOLIZATION OF THE INSURANCE MARKET OF UKRAINE

2021 ◽  
Vol 1 (21(49)) ◽  
pp. 10-18
Author(s):  
Anna Novoseletska
Keyword(s):  
Life Insurance ◽  
Insurance Market ◽  
Insurance Companies ◽  
Market Development ◽  
Property Insurance ◽  
Insurance Group ◽  
Key Indicators ◽  
Risk Insurance ◽  
Financial Groups

The intensity and quality of insurance market development are directly related to the level of competition, concentration and monopolization between insurance companies. Although the insurance market of Ukraine is insignificant in terms of key indicators in comparison with foreign ones, the competitiveness of its insurers is very important to ensure proper insurance protection of policyholders. The article is devoted to the assessment of the processes of concentration and monopolization of the insurance market of Ukraine. The study analyzed the structure of the insurance market by segments, concentration indicators and the Herfindahl-Hirschman index for the market as a whole and for individual types of insurance, gradation of insurance companies by the amount of collected insurance premiums. Based on the assessment, it was determined that the insurance market of Ukraine is generally low concentrated, as well as the sector of risky types of insurance. Among the selected segments of the insurance market, the most concentrated is the CASCO insurance. In the field of health insurance there is a slightly lower level of concentration and monopolization as in the OTSPVVNTZ segment. The market of classical property insurance is the least concentrated. The life insurance segment is characterized by moderate concentration and monopolization. The most powerful insurance companies in the relevant sectors of the insurance market of Ukraine are outlined. Since 2015, the top three leaders of the life insurance market are PJSC “MetLife”, PJSC “Insurance Group TAS” and PJSC “IC UNIСA LIFE”. Virtually unchanged leaders in the field of risk insurance during 2018-2020 were PJSC “IC ARX”, PJSC “IC UNICA” and PJSC “Insurance Group TAS”, which are members of financial groups that include leaders of the life insurance market. In general, the national insurance market is becoming more concentrated, which will be appropriate and accepted benefits while strong market players will not involve their residents, and the state controls these processes.

scholarly journals Background of insurance service and strategy for particular customer circles

2016 ◽  
Vol 1 (1) ◽  
pp. 30-35
Author(s):  
Maxim Korneyev ◽  
German Stoianov ◽  
Anton Grytsenko
Keyword(s):  
Life Insurance ◽  
Methodological Approach ◽  
Sales Management ◽  
Domestic Market ◽  
Insurance Market ◽  
Insurance Companies ◽  
Market Development ◽  
Insurance Company ◽  
Low Level ◽  
The Relationship

The article is dedicated to the development of services and conditions of cooperation directed to insurance in the premium circle of clients under globalization. The circle of premium customers in addition to their requirements was described. Extended types of insurance are disposed in the article in order to develop the relationship between customer and insurer for most efficient partnership. The main reasons which caused the low level of insurance market development in Ukraine were proposed both with theoretical variety of their decisions. Proposals about methodical necessity of separating life and non-life insurance companies in the domestic market are disposed due to recommendations of the strategical development of insurance company. Methodological approach to the customer attraction procedure is represented for insurance sales management improvement.

scholarly journals Consumer Buying Behaviour towards Life Insurance Policies in Thanjavur City

2019 ◽  
Vol 8 (2S4) ◽  
pp. 727-730
Keyword(s):  
Life Insurance ◽  
Global Market ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Indian Market ◽  
Insurance Policies ◽  
Major Player ◽  
Buying Behaviour ◽  
Indian Insurance

The typical promotion of life insurance policies is very less in India than any other countries. Despite being among one of the world’s highest population, the insurance industry in India serves as a high catchment for several foreign and Indian insurance companies in escalating their promotion and share in the market, the typical selling is much lesser. Prior to the aperture of Indian insurance market for the invasion of foreign insurance companies, Life Insurance Corporation (LIC) was the only insurance company that dealt with Life Insurance. Furthermore by giving opportunity for other private insurance companies in Indian market, all the global giants in life insurance has commenced business in our country. Using their knowledge about the global market and their associations, these multinational companies have offered numerous lucrative schemes to attract consumers at various levels in India but regrettably unsuccessful to acquire the main share in the Indian market. Despite all the odds, still LIC is the major player in the life insurance market with approximately more than sixty five percent of share in the market. Still it is a wonder about the reason behind why the consumers in India are not convinced of on various private companies and why still majority of the people in India have not insured their life. This research is an attempt to examine the factors that determines the consumer buying behavior of life insurance policies. This paper emphasizes on the consumers buying behaviour of life insurance policies in Thanjavur City. 150 samples were chosen by convenience sampling technique. A structured questionnaire was administered for this purpose and the data collected were analysed using chi-square and regression.

Improvement of Life Insurance Policyholders’ Protection Corporation with Emphasis on Consistency with the Vietnamese Market

2015 ◽  
pp. 5-27
Author(s):  
Kubo Hideya ◽  
Nga Nguyen
Keyword(s):  
Interest Rates ◽  
Life Insurance ◽  
Information Disclosure ◽  
Large Scale ◽  
Insurance Market ◽  
Insurance Companies ◽  
Financial Resources ◽  
Insurance Company ◽  
Key Points ◽  
In Series

What is needed for the Life Insurance Policyholders’ Protection Fund in Vietnam is to review and improve its system so that it is consistent with any anticipated changes of the insurance market in Vietnam, by taking advantage of the experience of the Life Insurance Policyholders’ Protection Corporation in Japan where large scale bankruptcies have occurred in series. More specifically, the key points are: (i) introducing a scheme where contract transfer is proceeded with even in the event that no savior insurance company steps forward, and placing emphasis on the indemnification of coverage-based insurance products in which the market is expected to grow, (ii) increasing the burden on policyholders of conventional deposit-based products, for example, a reduction of assumed interest rates, in an effort to increase necessary financial resources, (iii) developing professionals who are specialized in evaluating the values of bankrupt insurance companies and (iv) promoting thorough information disclosure and validating the soundness index.

scholarly journals Regulation of the Structure of the Insurance Portfolio as a Mechanism to Reduce the Risks of Insurance Companies

2018 ◽  
Vol 12 (2) ◽  
pp. 40-47
Author(s):  
A. V. Larionov
Keyword(s):  
Warning System ◽  
Binary Logistic Regression ◽  
Insurance Market ◽  
Insurance Companies ◽  
Market Regulation ◽  
Insurance Company ◽  
Property Insurance ◽  
Insurance Portfolio ◽  
Macroeconomic Indicators ◽  
The Stability

The purpose of this article is to determine the influence of the portfolio structure on the stability of insurance companies’ activity. With this objective, we examined how the structure of insurance portfolio affects the risks of companies’ activity.The author has proved that if insurance companies focus on voluntary property insurance it increases the probability of revocation of their licenses. These results were derived from a binary logistic regression using 112 observations. Parameters of insurance portfolio, as well as regional macroeconomic indicators that reflect the operating environment of the insurance business were used as variables for the model. Indicators of the insurance portfolio include voluntary and compulsory insurance. In the course of the research, it was revealed that one of the possible directions of development of insurance market regulation may be the organization of the mechanism of supervision over insurance companies, which allows soft impact on the structure of insurance portfolios in order to increase the stability of insurers. The introduction of this approach in regulation will allow the Bank of Russia to stimulate the development of the insurance market. Based on the results of the presented study, the Bank of Russia may develop guidelines to determine the optimal structure of the insurance portfolio. These recommendations can be one of the means of the surveillance policy over insurance companies. The orientation of the insurance company to certain types of insurance determines the stability of its functioning. In this regard, the Bank of Russia should develop an early warning system for disrupting the smooth functioning of the insurance company due to an incorrect focus on certain types of insurance. 

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