scholarly journals Formation of the optimal portfolio of insurer’s services of the voluntary types of insurance

2016 ◽  
Vol 7 (1) ◽  
pp. 45-51 ◽  
Author(s):  
Valentyna Levchenko ◽  
Myroslav Ostapenko
Keyword(s):  
Portfolio Optimization ◽  
Optimization Model ◽  
Optimization Problem ◽  
Optimal Portfolio ◽  
Optimal Structure ◽  
Insurance Companies ◽  
Insurance Company ◽  
Strategic Decisions ◽  
General Insurance ◽  
Insurance Portfolio

The article studies the possibility of using optimization modelling to form the optimal structure of insurance services’ portfolio of insurance companies. Based on the data of net insurance payments and profitability of the voluntary types of insurance in 2005-2015, the authors conducted their analysis according to the possibility to be included in the general insurance portfolio of the insurance company. The optimization model is based on the approach developed by G. Markowitz. The formation of insurance services portfolio is conducted by solving the optimization problem to maximize the portfolios’ profitability or to minimize the portfolio’s risks. The obtained results can be used in making strategic decisions by the management regarding the development of insurance companies. Keywords: insurance company, insurance service, insurance portfolio, portfolio optimization

Managing uncertainty in a general insurance company

1990 ◽  
Vol 117 (2) ◽  
pp. 173-277 ◽  
Author(s):  
C. D. Daykin ◽  
G. B. Hey
Keyword(s):  
Computer Model ◽  
Flow Model ◽  
Insurance Companies ◽  
Simulation Methods ◽  
Insurance Company ◽  
Practical Applications ◽  
General Insurance ◽  
Alternative Approaches ◽  
The Impact

AbstractA cash flow model is proposed as a way of analysing uncertainty in the future development of a general insurance company. The company is modelled alongside the market in aggregate so that the impact of changes in premium rates relative to the market can be assessed. An extensive computer model is developed along these lines, intended for use in practical applications by actuaries advising the management of genera1 insurance companies. Simulation methods are used to explore the consequences of uncertainty, particularly in regard to inflation and investments. Some comments are made on the role of actuaries in general insurance. Alternative approaches to describing the behaviour of an insurance firm in the market are considered.

scholarly journals FEATURES OF THE FORMATION AND VALUATION OF INSURANCE RESERVES

2021 ◽  
Author(s):  
Maxim Kompaniets ◽  
Inna Kysilyova
Keyword(s):  
Insurance Companies ◽  
Insurance Company ◽  
Strategic Decisions ◽  
Method Of Calculation ◽  
Loss Reserve ◽  
Management Efficiency ◽  
The Status ◽  
Conducting Research ◽  
Economic Nature ◽  
Lower Limits

The purpose of the paper is research of practice of making insurance reserves of the insurance companies in Ukraine and summarizes the ways of improvement of methods for their calculation with the purpose of increasing management efficiency of an organization. The article addresses the characteristics and economic nature of certain types of technical reserves of insurance organizations in particular the unencumbered premiums reserve, the loss reserve and the catastrophe reserve, and the characteristics of their formation. Major methods for calculating the reserve of unencumbered premiums reviewed and recommended adjustment to method 1/36 , and use of the reserve calculation method of unencumbered premiums, which takes into account inflation ratio. The method of calculation and formation of the loss reserve is considered as well as the characteristics of the reserve for past but undeclared losses and reserves for asserted but unresolved losses. The system of indicators of sufficiency of insurance reserves of insurance organizations was analyzed; the calculation formulae and recommended values are given. Insurance reserves sufficiency ratios refers to the status of insurance reserves and determine the adequacy of insurance reserves to the risks taken into insurance. Sufficiency ratio (based on premiums) and sufficiency ratio (based on payments) determine, respectively, the upper and lower limits of insurance reserves. For conducting research and substantiation of relevant conclusions, the indicators of dynamics and structure of insurance reserves of insurance company JSC IC “INGO” are analyzed. Sufficiency ratios for insurance reserves of JSC IC “INGO” are also calculated and Evaluation of the company’s insurance reserves has been performed. The results of the study can be applied by the heads of the financial divisions of insurance companies for the development of tactical and strategic decisions that allows to yield optimal condition of insurance reserves and their reliable valuation of insurance company and to perform the quick analysis of the state of insurance reserves of insurance company.

Determinants of United Kingdom General Insurance Company Performance

2004 ◽  
Vol 10 (5) ◽  
pp. 1079-1110 ◽  
Author(s):  
Y. Shiu
Keyword(s):  
United Kingdom ◽  
Panel Data ◽  
Performance Measures ◽  
Panel Data Analysis ◽  
Ordinary Least Squares ◽  
Insurance Companies ◽  
Company Performance ◽  
Insurance Company ◽  
Data Set ◽  
General Insurance

ABSTRACTDynamic financial analysis has become one of the important tools that actuaries use to model the underwriting and investment operations of insurance companies. The first step in carrying out the analysis is to investigate the most important factors affecting company performance. This paper identifies the determinants of the performance of United Kingdom general insurance companies using a panel data set consisting of economic data and Financial Services Authority/Department of Trade and Industry returns over the period 1986 to 1999. Three performance measures are used to capture different aspects of insurance operations. These measures are related to a number of economic and firm specific variables, chosen on the basis of relevant theory and literature. An ordinary least squares regression model and two panel data models are estimated for each of three performance measures. This paper also addresses several important econometric problems that are usually ignored in applied work in the context of panel data analysis. Based on the empirical results, this study finds that liquidity, unexpected inflation, interest rate level and underwriting profits are statistically significant determinants of the performance of U.K. general insurers.

scholarly journals An internal model for measuring premium risk when determining solvency of non-life insurers

2018 ◽  
Vol 63 (217) ◽  
pp. 99-127
Author(s):  
Jelena Kocovic ◽  
Marija Koprivica
Keyword(s):  
Internal Model ◽  
Fixed Ratio ◽  
Insurance Companies ◽  
Capital Requirement ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Life Insurers ◽  
Insurance Portfolio ◽  
Compound Distribution ◽  
Premium Risk

Under contemporary dynamic approaches the solvency of insurance companies is determined by measuring the risks that threaten their business. This paper presents an internal model for measuring premium risk when evaluating the solvency of non-life insurers. The solvency capital requirement is calculated on the basis of a compound distribution of insurance portfolio aggregate claim amount, resulting from combining separately modelled claim frequency and severity distributions, with prior verification of earned technical premium sufficiency. The practical application of the model is illustrated by a case study of a specific non-life insurance company in Serbia. The research findings show that the dynamic model of premium risk measurement results in larger capital requirement and contributes to a more reliable assessment of insurers? solvency than the static model. This proves the inadequacy of the existing fixed ratio model and stresses the need for changes in the current methodology of determining the solvency of insurance companies in Serbia.

scholarly journals Analisis Efisiensi Asuransi Umum Syariah di Indonesia Tahun 2013-2015: Aplikasi Metode Data Envelopment Analysis (DEA)

2017 ◽  
Vol 4 (9) ◽  
pp. 757
Author(s):  
Yulia Wahyu Ningsih ◽  
Noven Suprayogi
Keyword(s):  
Data Envelopment Analysis ◽  
Insurance Companies ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Insurance Company ◽  
Average Value ◽  
General Insurance ◽  
Decision Making Unit ◽  
Dea Analysis ◽  
Input Variables

This study aims to analyze the efficiency of sharia general insurance companies in Indonesia. The input variables used are total assets, expenses, and payment of claims, while the output variable is the income and tabarru’ funds. The method were used to measure the level of efficiency is the Data Envelopment Analysis (DEA) with the assumption of Variable Return to Scale (VRS) with input and output orientation. The samples are 12 sharia general insurance companies during 2013-2015. The results of the study indicate that the average result of DEA analysis for the entire DMU (Decision Making Unit) has not been efficient. The average value of economic efficiency (CRS) by 0.978, technically efficiency (VRS) for 0.925, and scale efficiency for 0.945. Source of inefficiency sharia insurance company is the scale of operations and management of input to output is not optimal.

A NEW MULTIVARIATE ZERO-INFLATED HURDLE MODEL WITH APPLICATIONS IN AUTOMOBILE INSURANCE

2022 ◽  
pp. 1-24
Author(s):  
Pengcheng Zhang ◽  
David Pitt ◽  
Xueyuan Wu
Keyword(s):  
Model Performance ◽  
Insurance Companies ◽  
Hurdle Model ◽  
Automobile Insurance ◽  
Insurance Company ◽  
Computational Statistics ◽  
Count Models ◽  
Insurance Portfolio ◽  
Insurance Business ◽  
One Year

Abstract The fact that a large proportion of insurance policyholders make no claims during a one-year period highlights the importance of zero-inflated count models when analyzing the frequency of insurance claims. There is a vast literature focused on the univariate case of zero-inflated count models, while work in the area of multivariate models is considerably less advanced. Given that insurance companies write multiple lines of insurance business, where the claim counts on these lines of business are often correlated, there is a strong incentive to analyze multivariate claim count models. Motivated by the idea of Liu and Tian (Computational Statistics and Data Analysis, 83, 200–222; 2015), we develop a multivariate zero-inflated hurdle model to describe multivariate count data with extra zeros. This generalization offers more flexibility in modeling the behavior of individual claim counts while also incorporating a correlation structure between claim counts for different lines of insurance business. We develop an application of the expectation–maximization (EM) algorithm to enable the statistical inference necessary to estimate the parameters associated with our model. Our model is then applied to an automobile insurance portfolio from a major insurance company in Spain. We demonstrate that the model performance for the multivariate zero-inflated hurdle model is superior when compared to several alternatives.

Valuation and corporate management in a non-life insurance company

1994 ◽  
Vol 121 (2) ◽  
pp. 363-440 ◽  
Author(s):  
M. Bride ◽  
M. W. Lomax
Keyword(s):  
Firm Value ◽  
Management Tool ◽  
Corporate Management ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Scarce Resources ◽  
Valuation Model ◽  
General Insurance ◽  
Insurance Portfolio ◽  
Corporate Liabilities

AbstractThis paper explores the benefits and limitations of a valuation framework as a management tool within a general insurance operation. Two models are presented, one a model of the firm and the other an option valuation model, which together create a robust framework that enables management to analyse how different decisions would affect both the overall firm value and its distribution amongst investors. The model of the firm assists in understanding how key factors such as the momentum of a general insurance portfolio and the allocation of scarce resources affect the value of the firm. The second model, an option framework for corporate liabilities, highlights the critical distinction between the value of the firm and the value of investors' claims on the firm.

scholarly journals Early Warning System Analysis of General Insurance Companies

2021 ◽  
Author(s):  
Amandhita Pratiwi Hidayah Ndaru ◽  
Yuli Soesetio
Keyword(s):  
Early Warning ◽  
Financial Services ◽  
Early Warning System ◽  
System Analysis ◽  
Warning System ◽  
Test Methods ◽  
Insurance Companies ◽  
Company Performance ◽  
Insurance Company ◽  
General Insurance

This research aimed to examine the effect of an Early Warning System on insurance company performance. The sample included insurance companies listed on The Financial Services Authority (OJK) in 2016-2018. Fifty samples were obtained through purposive sampling. Data were analysed using regression. The results showed that the loss ratio, liquidity ratio, technical reserve ratio and age of the insurance company affected their performance, but not consistently across the three regression test methods. Meanwhile, the retention ratio did not affect the performance of insurance companies consistently. These results suggest that Indonesian insurance companies having a tendency to prioritize public trust to increase the insurance business. Keywords: Early Warning System, Insurance Company Performance, Indonesia General Insurance

scholarly journals Job Satisfaction of the Employees of the General Insurance Companies in Bangladesh

2016 ◽  
Vol 5 (1) ◽  
pp. 7-18
Author(s):  
Mohammad Jashim Uddin ◽  
Md. Masud Chowdhury ◽  
Masuma Yasmin ◽  
Aklima Akter
Keyword(s):  
Job Satisfaction ◽  
Job Security ◽  
Insurance Companies ◽  
Primary Data ◽  
Insurance Company ◽  
General Insurance ◽  
Team Spirit ◽  
Positive Feelings ◽  
Strongly Agree ◽  
Negative Feelings

This study investigates the employees’ job satisfaction of general insurance companies in Bangladesh. A questionnaire was utilized to collect primary data from both public and private general insurance companies. The first part of the questionnaire comprises of the demographic profile of the respondents and the last part indicates the key measuring variables on a Likert scale ranging from 5 (strongly agree) to 1 (strongly disagree) of job satisfaction. The total number of respondents for this study was 385. 74.80 percent of the total respondents have taken from the private general insurance companies, and the remaining percentage from the public general insurance company. 70 percent of the total respondents were male respondents, and 30 percent of the total respondents were female respondents. Factor analysis and correlation matrix have been conducted to analyze the collected data. This study postulates that employees of general insurance companies have positive as well as negative feelings. Three factors reflect positive feelings toward their jobs. These factors are pay and promotional potential, the well-organized chain of command and general working condition. On the other hand, two factors are responsible for negative feelings. These factors are poor team spirit and poor job security. This paper also advocates some recommendations to maximize the positive feelings and to minimize the negative. The proper higher authority should ensure participating decision method to take any decision, the fair delegation, and direct relationship with sub-ordinates to enhance the team spirit for minimizing the dissatisfaction of the employees and should ensure the job security of the employees to get their best effort to achieve the organizational goal.

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