scholarly journals Assessing the level of competitiveness of the insurance sector during economic crises: The example of Ukraine

2021 ◽  
Vol 12 (1) ◽  
pp. 72-82
Author(s):  
Iryna Tsymbaliuk ◽  
Nataliia Pavlikha ◽  
Olena Zelinska ◽  
Alisa Ventsuryk ◽  
Anna Radko
Keyword(s):  
Capital Investment ◽  
Insurance Industry ◽  
Integrated Analysis ◽  
Regression Equations ◽  
Economic Crises ◽  
Endogenous Factors ◽  
Insurance Sector ◽  
Sector Performance ◽  
Competitiveness Index ◽  
The Impact

In the context of the crisis in Ukraine, it is important to increase the competitiveness of the insurance sector as a measure of its stability and dynamism under various scenarios of economic development. The purpose of this paper is to assess the competitiveness of the insurance sector and determine the impact on its level of factors caused by economic crises. Using the method of integrated analysis, the index of competitiveness of the insurance industry is built, which considers the number of businesses, employment, sales, capital investment in the industry, insurance sector performance, share of profitable enterprises, and profitability of the insurance sector in Ukraine for 2012–2020. The results showed that the impact of the 2014–2015 crisis due to endogenous factors, namely political instability in the country and the devaluation of the hryvnia, led to a significant reduction in the competitiveness index of the insurance sector. At the same time, during the pandemic, the insurance sector is stabilized, as evidenced by the growth of sales and the share of profitable enterprises, as well as increasing profitability of insurance activities. The competitiveness index did not change significantly during the pandemic. To analyze the dependence of the integrated indicator of the competitiveness of the insurance sector on economic fluctuations during the crisis, regression equations are constructed. It is proved that the greatest impact on the competitiveness index of the insurance sector in times of crisis is exerted by changes in employment and the amount of capital investment.

AN EMPIRICAL STUDY OF INDIAN INSURANCE INDUSTRY POST GLOBAL FINANCIAL CRISIS

2015 ◽  
Vol 6 (01-02) ◽  
Author(s):  
Anis Ur Rehman ◽  
Yasir Arafat Elahi ◽  
Sushma .
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Insurance Industry ◽  
Primary Data ◽  
Policy Recommendations ◽  
Insurance Sector ◽  
The World ◽  
The Impact ◽  
The New Deal

India has recently emerged as a major political and economic power in the world. The financial crisis that engulfed the world in 2008 needed developing countries like India to lead the rescue and recovery, instead of G7 westerns countries who dealt with such crisis in the past. Recently, discussions and negotiations are going amongst G20 countries regarding a new global financial architecture (G-20 Summit, 2008). The outcome will affect the relevant industries in India and hence it is a public interest issue for the actuarial profession in the country. Increased and more intrusive and costly regulations and red tapes are likely to be a part of the new deal (Economic Survey 2009-10). The objective of this paper is to study the perception of higher level authorities in Insurance sector regarding the role of regulator in minimizing the impact of global financial crisis. The primary data has been collected from 200 authorities in insurance industry. The data has been analyzed with statistical tools like MS-Excel. On the basis of the findings, various measures and policy recommendations for insurers have been suggested to minimize the impact of crisis.

scholarly journals A Study on Impact of FDI on Selected Private Sector Insurance Companies in India

2017 ◽  
Author(s):  
C.K. Hebbar ◽  
Meenakshi Acharya
Keyword(s):  
Private Sector ◽  
Negative Impact ◽  
Insurance Industry ◽  
Secondary Data ◽  
Insurance Companies ◽  
Insurance Markets ◽  
Insurance Sector ◽  
Previous Level ◽  
The Impact ◽  
Indian Insurance

India is one among the most promising emerging insurance markets in the world. Indian insurance sector was liberalised in 2001. The insurance industry in India has undergone transformational changes over the last 15 years. In July 2014, the Cabinet Committee on Economic Affairs (CCEA) approved 49% FDI in insurance from the previous level of 26%. This paper aimed at examining the impact of FDI on the performance of selected private sector insurance companies. The study is based on secondary data and it is a descriptive study. This paper found that FDI had a significant positive as well as negative impact on areas which were studied in the paper.

Impact of Foreign Direct Investment in India on Insurance Industry

2018 ◽  
Vol 6 (7) ◽  
pp. 65 ◽  
Author(s):  
Krunal Soni
Keyword(s):  
Foreign Direct Investment ◽  
Life Insurance ◽  
Direct Investment ◽  
Capital Investment ◽  
Insurance Industry ◽  
Dynamic Environment ◽  
Insurance Sector ◽  
Private Participation ◽  
Overall Performance ◽  
Insurance Business

The study concluded that increase in foreign direct investment (F.D.I.) is optimistic move for the future of Indian Life Insurance Sector, since this sector need huge amount of capital investment which can be done effectively only through increase in FDI and it enhance overall performance of insurance sector. Parliament has passed Insurance Laws (Amendment) Bill, 2015. It was first passed in LokSabha on 4 March 2015 and later in RajyaSabha on 12 March 2015, which will become an Act when the President signs it. The bill aims to bring improvements in the existing laws relating to insurance business in India. The bill also seeks to remove archaic provisions in previous laws and incorporate modern day practices of insurance business that are emerging in a changing dynamic environment, which also includes private participation. The insurance sector in India has a great potential even during the downtrend and FDI flow is expected to rise in the mere future.

E-commerce and portfolio allocations: A study on the Indian life insurance customers

2020 ◽  
Vol 1 (1) ◽  
pp. 36-46 ◽  
Author(s):  
Rajeev Kumar Ranjan ◽  
Shoaib Alam Siddiqui ◽  
Nitin Thapar ◽  
Shyam Singh Chauhan
Keyword(s):  
Life Insurance ◽  
Insurance Industry ◽  
Personal Selling ◽  
Minimum Cost ◽  
Online Marketing ◽  
Insurance Companies ◽  
Purchase Behavior ◽  
Outcome Variable ◽  
Insurance Sector ◽  
The Impact

The paper attempts to find the impact of technology on the purchase behavior of consumers for insurance products. With the use of technology and e-commerce the adoption of insurance products had undergone a transformation. With the entry of private players the insurance sector has become very competitive (Jampala & Rao, 2005). With increased competition the life insurance industry is adopting innovative marketing practices to tap a larger market; the companies therefore are developing their capabilities of access-based penetration, distribution and sale to customers. The advances in technology have changed the way insurance products were marketed in India. Apart from the traditional agency channel, the companies are also exploring alternative channels like brokers, rural channels, online marketing, and e-commerce, etc. The personal selling based channels are the new innovative methods offering an effective reach at a minimum cost. To analyze the consumer purchase behavior the study used two-way ANOVA to determine the effect of two nominal predictor variables on a continuous outcome variable. The results of the study will assist the life insurance companies in improving their operations and efficiency.

The Dynamics of Insurance Development and Economic Growth in Nigeria

2017 ◽  
Vol 65 (1-4) ◽  
pp. 37-44
Author(s):  
Philip Ifeakachukwu Nwosa ◽  
Zainab Bolanle Mustapha
Keyword(s):  
Economic Growth ◽  
Insurance Industry ◽  
Ordinary Least Squares ◽  
Jel Classification ◽  
Regression Estimate ◽  
Insurance Sector ◽  
The Government ◽  
Causal Nexus ◽  
The Impact ◽  
Insurance Development

This study examined the dynamics of insurance development and economic growth in Nigeria for the period 1996–2014. Specifically, the study addressed two important issues: the impact of insurance development on economic growth and the causal nexus between insurance development and economic growth. The study utilised two techniques: ordinary least squares (OLS) and causality. The OLS regression estimate revealed that insurance development had an insignificant effect on economic growth, while the causality estimate showed a one-way causation from economic growth to insurance development. The study recommended that the government should put in place appropriate policies and regulations which would bring about sound development of the insurance sector. This would enhance the contribution of the insurance industry to the growth of the Nigerian economy. JEL Classification: E44, G22, O40

scholarly journals ORGANIZATIONAL AND FINANCIAL DETERMINANTS OF THE INNOVATIVE COMPONENT OF THE COUNTRY’S COMPETITIVENESS

2021 ◽  
Vol 5 (40) ◽  
pp. 465-474
Author(s):  
О. Baula ◽  
S. Zhukov ◽  
О. Liutak ◽  
Ya. Stoliarchuk ◽  
L. Korolchuk
Keyword(s):  
Interest Rates ◽  
Financial Support ◽  
Capital Investment ◽  
Innovation Policy ◽  
Regression Equations ◽  
Innovative Development ◽  
Industrial Sectors ◽  
State And Local ◽  
Multifactor Regression ◽  
The Impact

Abstract. The article identifies the impact of sources of funding for innovation in the country on economic growth through economic and mathematical modeling and construction of regression equations between GDP and funding for innovation and research costs with the construction of a multifactor regression equation. As a result of regression analysis, it was found that the most significant impact on the resulting indicator have such variables as capital investment from state and local budgets and research and development costs. Using the method of extrapolation, GDP growth was forecast for 4 years, and it was found that capital investment from own funds of enterprises and organizations will grow by 24,08%, capital investment from state and local budgets by 28,42%, research costs and development by 22,76% for the analyzed period.Subject to compliance with the projected values of the financial determinants of the innovative component of increasing the country’s competitiveness, the volume of estimated GDP in actual prices for the forecast period will increase by 936039,011 million UAH or 23,26%. The reasons for the low level of the state of the innovation sphere in the domestic economy are outlined: underdevelopment of the market of innovative products due to low indicators of development of integration processes in it; weakness of relations that determine the innovative nature of economic development; low motivation of the industrial sector in innovative development; the supply of technological innovations created by national industrial companies and research institutions in the domestic market is limited; high cost of development and implementation, high interest rates on the investment portfolio, a long payback period, the focus of financial institutions on the issuance of «short loans», usually consumer loans for technological renewal of industrial sectors. To resolve such contradictions, the system-forming factors of a set of measures to intensify integration processes in the innovation sphere of Ukraine were proposed. Systematized foreign experience in scientific, technical and innovation policy, as well as commercialization of innovations, taking into account which proposed conceptual guidelines for organizational and financial support of the effectiveness of the innovative component of competitiveness: economic mechanisms (direct budget investments; preferential lending; integration with foreign institutions; financial activities; increase the share of GDP aimed at financing innovation processes, development of an effective set of measures to attract international grants and household savings as investments to implement the concept of innovative development of the country’s economy, etc.); organizational mechanisms (formation of integration clusters using the potential of education, business, government, public; state assistance in the development of innovation infrastructure, etc.). Keywords:innovations, financial support of innovative development, country competitiveness, innovation system, cluster, regression, correlation, integration processes. JEL Classification O11, O19, O16, O33, E62, F20 Formulas: 1; fig.: 5; tabl.: 3; bibl.: 12.

Managing adversity: understanding some dimensions of organizational resilience

2015 ◽  
Vol 38 (4) ◽  
pp. 346-366 ◽  
Author(s):  
Ihab Hanna Salman Sawalha
Keyword(s):  
Stock Exchange ◽  
Insurance Industry ◽  
Insurance Companies ◽  
Key Factors ◽  
Structured Interviews ◽  
Term Survival ◽  
Content Type ◽  
Insurance Sector ◽  
Quantitative And Qualitative Research ◽  
The Impact

Purpose – This study aims to explore how insurance organisations interpret organisational resilience; to identify potential objectives, elements and practices of organisational resilience within insurance organisations; and to investigate the impact of culture on resilience. Design/methodology/approach – An empirical study in the insurance industry in Jordan was undertaken. The population consists of all 28 insurance companies registered at the Amman Stock Exchange. Data were collected via a survey questionnaire followed by three semi-structured interviews. Findings – Results revealed that respondents understand the meaning of organisational resilience differently. Various factors constitute organisational resilience in Jordanian insurance organisations. Nevertheless, some key factors that have the potential to improve organisational resilience were missing. Culture influenced the level of organisational resilience considerably. Practical implications – This study provides insights into the factors that enable organisations to withstand future risks, which, in turn, ensures long-term survival. It also reveals how culture affects the level of organisational resilience. This paper provides a basis for policymakers in Jordan to start actively considering existing resources and cultural trends to introduce new frameworks for improving resilience in the insurance sector. Originality/value – This study is made in the context of an emerging economy; Jordan. It uses quantitative and qualitative research approaches. It is also one of the few studies to discuss resilience in relation to culture and within the insurance sector.

Consumers Awareness towards Insurance Companies and their

2017 ◽  
Vol 3 (2) ◽  
Author(s):  
G. Suresh Babu
Keyword(s):  
Life Insurance ◽  
Insurance Industry ◽  
Private Insurance ◽  
Insurance Companies ◽  
Private Companies ◽  
Insurance Sector ◽  
The World ◽  
Innovative Products ◽  
Rate Of Returns ◽  
The Impact

The insurance sector is growing rapidly all over the world. The insurance industry is gaining key position in the world economy and playing a significant role to cover the life and business risk of millions. At present, the insurance industry is in a nascent stage. The impact of privatization in risk business in India has shown its impact on transformation from the state of monopoly to mushrooming companies offering innovative products to the Indians. The growth in the life insurance sector has shown new heights and the functioning of private companies has given tough challenge to Life Insurance Corporation of India. Within a short span of time, private insurance companies have acquired more than 25 per cent of the life insurance market. Many changes have taken place in the processes and procedures of insurance business in terms of its format and products as well the mindset, motives, interests, and expectations on the part of the customers also. The customers have become more vigilant, calculative and calibrated not only in terms of risk coverage but look forward for safety of investment and higher rate of returns on the saving in insurance sector

scholarly journals THE ANALYSIS OF CURRENT TRENDS IN THE INSURANCE SEGMENT OF THE FINANCIAL MARKET OF UKRAINE

2021 ◽  
pp. 130-139
Author(s):  
Yuriy Klapkiv ◽  
Volodymyr Svirskyi ◽  
Roman Shchur
Keyword(s):  
Life Insurance ◽  
Financial Literacy ◽  
Insurance Industry ◽  
Cash Flows ◽  
The State ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Sector ◽  
Current Trends ◽  
The Impact

Purpose. Analysis of the state of the insurance services market of Ukraine, identification of the main problems of its development in modern conditions and determination of directions for improving the functioning of the insurance services market in Ukraine. Methodology of research. The scientific and methodological basis for the article are scientific works, monographs, materials of professional publications, Internet resources. During the research the methods of analysis and synthesis, system-functional method and method of comparative studies were used, with the help of which most modern tendencies, phenomena and processes in the market of insurance services are explained. Findings. The article is devoted to current trends of the insurance in Ukraine. The study examines the main trends in its development during 2016-2020. The dynamics of the number of insurance companies, the main indicators of insurers, the structure of gross and net insurance premiums of domestic insurers, reinsurance indicators are analyzed. Based on a dataset of Ukrainian insurance industry, we analyse the impact of transformation of the insurance sector. Based on the analysis, the main problems of the insurance services market of Ukraine are identified and proposals for improving its development are formulated. The results illustrate major tasks the industry is facing: enhancing the customer experience, improving its business processes, offering new products, and preparing for competition with other industries, imperfection of regulatory regulation of the insurance sector; underdevelopment of the life insurance segment and other types of insurance (agricultural, environmental, catastrophic risks and life insurance, cyber risks); low solvency of potential consumers of insurance services, low level of capitalization of insurance companies, lack of insurance culture, distrust of the insurance institution; fraud and neglect of the rights of policyholders by some insurance companies; low financial literacy of policyholders. Moreover, we identify key areas of change of the insurance services market of Ukraine: creation of a centralized online database of insurance contracts; improving the system of taxation of insurance activity; adaptation of Ukrainian legislation in the field of insurance to EU legislation; introduction of high technologies in insurance services; improvement of marketing management; creation of an export insurance system by establishing a special organization for export insurance and financing; introduction of insurance culture and traditions. Originality. A comprehensive approach to the analysis of the state of the insurance market as an important component of the financial sector of the economy with most of its inherent characteristics, functions and principles; economic space in which institutional units for the implementation of insurance services interact; a set of orderly cash flows between the subjects of the insurance market. Practical value. The results of the study can be the basis for further research to systematically address practical problems in this area, development and implementation of measures aimed to achieve accelerated progressive development of the insurance market to ensure socio-economic growth. Key words: insurance, insurance services, insurance services market.

Demonstrating the Potential of EO for the Agro-Insurance Sector

2021 ◽  
Author(s):  
Michaela Seewald ◽  
Ralf Ryter ◽  
Roel Van Hoolst ◽  
Laurent Tits ◽  
Ian Shynkarenko ◽  
...  
Keyword(s):  
Remote Sensing ◽  
Best Practice ◽  
Insurance Industry ◽  
Earth Observation ◽  
Management Tool ◽  
Weather Extremes ◽  
Loss Assessment ◽  
Agricultural Insurance ◽  
Insurance Sector ◽  
The Impact

<p>Agriculture provides essential social benefits: supply of food and commodities, economic development and employment. However, agriculture is under growing pressure, arising from soil degradation, water scarcity, natural hazards and weather extremes due to changes in climate patterns. Agricultural insurance is gaining an increasing role as a risk management tool. Given this, the insurance sector has a significant emphasis on identifying, gathering and aggregating historical and current regional and localised data, which could be sourced from remote sensing and earth observation (EO) datasets.</p><p>To find out more about the needs and challenges of the agro-insurance’s sector and how these might be addressed with current and future EO capabilities, the ESA Earth Observation Best Practice for Agro-Insurance (EO4I) project brings together the EO and agro-insurance sector. The latter is represented by a champion user group comprised of primary insurers as well as reinsurers. The very close and regular contact with those champion users is an outstanding characteristic of this project.</p><p>An analysis of the potential customers’ requirements revealed a list of more than 60 challenges and needs of the sector, such as the assistance in damage assessments, identification of potential risk effects, estimation of affected area and the extent of damage, or monitoring the crop development throughout the season. These challenges were translated into geo-information requirements for a better analysis of currently available EO capabilities. As could be seen so far, business processes of insurance industry can be supported by numerous remote sensing products and services.</p><p>Nevertheless, there is a major gap between the perceived potential and the actual application of available EO capabilities by the agro-insurance sector. The bottleneck is the lack of awareness, understanding and trust in the EO products and services for the agro-insurance sector on both sides, the insurers and their customers. The remote sensing community also often focusses on the possibilities and appropriateness of certain techniques, without considering the impact on the customer value, the productivity and profitability of the industry.</p><p>Therefore, EO methods, products and services need to be adaptable to the agro-insurance’s business needs and fit into their daily workflows. The project now builds on the results of this initial requirements analysis to connect EO products with insurance solutions to go from best practice to practice. To demonstrate the potential of EO and cutting-edge technology for the agricultural insurance sector, customised use cases to support loss assessment and monitoring based on artificial intelligence will be developed for selected areas and tested with the available in-situ data.</p>

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