scholarly journals The potential positive effects of captive insurance companies on efficiency and moral hazard within a group of companies

2016 ◽  
Vol 13 (2) ◽  
pp. 487-493
Author(s):  
Wim Weterings
Keyword(s):  
Risk Management ◽  
Moral Hazard ◽  
Positive Influence ◽  
Parent Company ◽  
Management Policy ◽  
Insurance Companies ◽  
Alternative Form ◽  
Direct Writing ◽  
Positive Effects ◽  
European Insurance

Captive insurance companies are ‘in-house’ (re)insurance companies formed with the specific objective of insuring the risks of their parent company and/or its affiliated companies. This alternative form of risk management is potentially or in fact an efficient means through which large listed or a group of companies other companies or a group of companies can protect themselves financially. In the process, the parent company has more control over how risks are insured and claims are managed. The parent company also has more insight into and is able to exercise more influence on the behaviour of the insured companies and their affiliates and therefore on the insured risks, as a result of which moral hazard is lower. There’s also a positive influence on the problem of adverse selection. Insurance law and regulatory legislation, to which captives are also subject, also play an important role in the mitigation of moral hazard. An insurance captive can have important efficiency effects, but is not suitable for every company. The company to be insured must have sufficient financial buffers and a serious premium volume for a captive to be able to increase the prosperity of a company. The start-up costs are high, there are operational costs and the captive must comply with the same regulatory and financial requirements as regular insurance or reinsurance companies. European insurance regulatory legislation is very strict for direct writing captives, but this does benefit the quality of the captives and the risk management policy pursued and prevents captives from being misused.

Key Neutralization Tools for Risks of Banks and Insurance Companies Integration

2017 ◽  
Vol 2017 (1) ◽  
pp. 101-122
Author(s):  
Oleg Averchenko
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
The State ◽  
Insurance Companies ◽  
Internal Environment ◽  
Prudential Supervision ◽  
Positive Effects

Integration of banks and insurance companies along with positive effects for the state, clients and shareholders, also brings about specific risks. Functioning of financial institutions is exposed to the influence of external and internal environment, manifested in a number of risks finding the expression in corresponding threats. The article examines the risks of banks and insurance companies’ integration together with the main instruments of their neutralization. The author offers classification of risks of insurance companies and banks integration by its level and develops the tools to prevent and neutralize the risks of integration. The tools to prevent and neutralize the risks of insurance companies and banks integration are as follows: internal risk management; prudential supervision and regulation.

scholarly journals Post-Adversities Recovery and Profitability: The Case of Italian Farmers

2019 ◽  
Vol 16 (17) ◽  
pp. 3189 ◽  
Author(s):  
Donatella Porrini ◽  
Giulio Fusco ◽  
Pier Paolo Miglietta
Keyword(s):  
Risk Management ◽  
Agricultural Policy ◽  
Crop Insurance ◽  
Public Support ◽  
Management Policy ◽  
Insurance Companies ◽  
Italian Case ◽  
Positive Effect ◽  
Different Levels ◽  
Natural Calamity

Insurance represents one of the main instruments, together with other risk management mechanisms, to face the adverse effects produced by natural calamity that, despite their growing intensity and the enormous costs, are still perceived as “exceptional”. Risk management is an important part of farming, and it is a concern for those governments which aim at achieving their agricultural policy targets. In this context, crop insurance can also represent a financial mitigation tool for farmers to face climate change consequences. This study is focused on the Italian case analyzing the evolution of public support and its effect on risk management policy in agriculture. Our research, based on panel data regressions, provides two different levels of analysis. The first one evaluates how the reimbursed value issued by insurance companies in favor of agricultural firms, as recovery from natural adversities, affects farmers’ profitability. The second one evaluates how the reimbursed value is used in farm management. The results of the analysis demonstrating the significance of insurance variables and their positive effect on the profitability of the farms, represent a strong advance in the farm risk management field

scholarly journals Measures of Efficiency of Agricultural Insurance in Italy, Economic Evaluations

Risks ◽  
2018 ◽  
Vol 6 (4) ◽  
pp. 126 ◽  
Author(s):  
Fabian Capitanio ◽  
Antonio De Pin
Keyword(s):  
Risk Management ◽  
Agricultural Policy ◽  
Management Policy ◽  
Insurance Companies ◽  
Economic Evaluations ◽  
Agricultural Insurance ◽  
Insurance System ◽  
Weather Patterns ◽  
Risk Assessment Models ◽  
Agrarian Policy

Risk management policy in agriculture has become particularly prominent nowadays, considering the evolution of the Common Agricultural Policy (CAP) and climate change. Moreover, the Word Trade Organization places constraints on it. In this context, (1) the aim is to analyze the causes of the loss of effectiveness of the Italian insurance system, unable to deal with the specific coverage demand from agriculture. (2) The analysis is carried out through the economic evaluation of convenience in adhering to the instruments offered by the insurance market to winegrowers in the Controlled and Guaranteed Denomination of Origin (DOCG) area of Conegliano-Valdobbiadene. (3) The study highlights that the subsidized coverage alone is not the most adequate measure of agricultural policy. Adhering to preferential programs implies the drafting of a supplementary insurance policy to minimize the loss function. (4) The current insurance system impasse demonstrates that the producer hardly accepts to policies which do not convert into an immediate income benefit. The European risk management regulation confirms its limits in terms of usefulness and efficiency of the agrarian policy. (5) The prediction of probabilistic increase of severe-weather patterns makes the search for innovative risk assessment models more urgent, models which can combine the different needs of stakeholders: farmers, insurance companies, and society.

scholarly journals Европска регулатива тржишта осигурања – изазови имплементације у Црној Гори // European regulation of insurance market – challenges of the implementation in Montenegro

2013 ◽  
Vol 11 (18) ◽  
pp. 169
Author(s):  
Милијана Нововић ◽  
Милан Лакићевић
Keyword(s):  
Financial Stability ◽  
International Association ◽  
Solvency Ii ◽  
Positive Influence ◽  
Internal Controls ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Supervision ◽  
The Stability ◽  
European Insurance

Резиме: Тржишна позиција и конкурентска предност црногорских осигуравача на интегрисаном тржишту осигурања, може се одржати унапређењем професионализма, уважавањем потреба осигураника, јачањем финансијског капацитета у циљу преузимања великих ризика, увођењем софистицираних производа осигурања, као и прилагођавањем пословања конкурентској стратегији глобалног тржишта.Имплементација одредби европског законодавства за област осигурања у циљу интеграције црногорског у европско тржиште, представља велики изазов за све тржишне субјекте. Имајући у виду величину и специфичности црногорског тржишта, неопходно је креирањем нових, или измјенама постојећих законских рјешења, водити рачуна не само о прелазним роковима за усклађивање пословања са прописима Европске уније (ЕУ), већ и о одржавању стабилности тржишта осигурања Црне Горе. У циљу успостављања адекватног институционалног оквира за интеграцију домаћег у јединствено европско тржиште, Агенција за надзор осигурања Црне Горе би требала да усвоји акте усклађене са директивама Европске уније и основним принципима Међународног удружења супервизора осигурања. Имплементацијом пројекта „Солвентност II”, уз проактивну и правовремену контролу пословања, осигуравајуће компаније ће морати да идентификују и вреднују све ризике којима су изложене, антиципирају тржишне промјене, јачају унутрашњу контролу и одржавају своју финансијску стабилност, што ће позитивно утицати на даљи просперитет тржишта осигурања.Summary: Market position and competitive advantage of insurers in the integrated Montenegrin insurance market, can be sustained by improving professionalism, taking into account the needs of the insured, strengthening of financial capacity with the aim that insurers accept the big risks, introducing of sophisticated insurance products, as well as by adjusting the business for competitive strategy of global market.Implementation of European insurance legislation in order to integrate Montenegrin into European insurance market is a big challenge for all insurance market subjects. Considering the size and specificity of Montenegrin insurance market, it is necessary that when creating new and changing valid legal solutions, regulator takes into account not only the deadlines for the adjustment of insurance companies’ businesses with EU regulations, but also the stability of the insurance market in Montenegro.In order to establish an adequate institutional framework for integration into the European market, the Insurance Supervision Agency of Montenegro should adopt legislation in line with European Union directives and the fundamental principles of the International Association of Insurance Supervisors. By implementing the „Solvency II” project, with a proactive and adequate control of the business, the insurance companies will have to identify and evaluate the risks they are exposed, to anticipate market changes, to improve internal controls and to maintain its financial stability. All mentioned will have the positive influence on the future prosperity of the insurance market .

Effect of Financial Risk Management on the Performance of Insurance Companies in Rwanda (2015-2019)

2020 ◽  
Author(s):  
Simon Pierre NTIVUGURUZWA ◽  
Jean Bosco Ndikubwimana ◽  
Dukunde Angelique ◽  
JMV MPIRANYA ◽  
Frederic Mpambara ◽  
...  
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Insurance Companies ◽  
Financial Risk Management

scholarly journals Risk Management in nursing homes: an Italian experience in 2019

2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
M F Furmenti ◽  
F Bert ◽  
M Rucci ◽  
U Fiandra ◽  
A Scarmozzino ◽  
...  
Keyword(s):  
Risk Management ◽  
Nursing Homes ◽  
Management Practices ◽  
Well Being ◽  
The Elderly ◽  
Management Plan ◽  
Management Policy ◽  
Insurance Company ◽  
Term Care ◽  
Starting Point

Abstract Background The ageing of the European population leads to an increasing demand for Long-Term Care services. The security and well-being of the elderly population hosted in nursing homes (NHs) needs an effective Risk Management policy, officially sanctioned in Italy by the so-called “Legge Gelli” n.24 (March 8th, 2017) and the Directive 2011/24/EU on the application of patients' rights in cross-border healthcare. In order to verify the effective application of common “best practices” in terms of Risk Management in NHs, a tool useful to analyse risk management attitudes in Northern Italy was conceived and applied in a sample of NHs. Methods The tool, developed in collaboration with the health insurance company SHAM Italia, is composed of 124 items (with a dichotomous answer -YES/NO) on topics related to various Risk Management practices. This tool was submitted in a face-to-face interview to several Directors (Health Directors or Nursing Coordinators) of NHs in the Piedmont Region. A list of randomly-chosen NHs was contacted: 4 of them were selected for the pilot study and compiled the questionnaire. Answers were gathered and analyzed through Microsoft Excel. Results Only the 25% of NHs has a Risk Management plan with objectives and indicators of effectiveness and uses Risk Analysis instruments for a pre- and post-” risk detection. Only one has employees working mainly on Risk Management alone. The 75% of the reported events were “Adverse Events”, and all the NHs (100%) have a protocol for a patient voluntary departure or for fall prevention or for bedsores prevention; while 50% have a protocol for prevention of aggressions towards operators or for patients' suicide prevention. Conclusions This work provides a starting point to face new challenges that are looming on the European Health-care Systems: the care for the elderlies needs to be perfected to reduce inefficiencies, cut useless costs and improve safety of patients in the NHs setting. Key messages Despite safety of older patients in nursing homes is not only important but mandatory in Italy, risk management tools for this setting are lacking in literature. A new tool applied in Italian nursing homes showed that risk management needs to be implemented in practice and these results can be extended to European context.

scholarly journals Farmers’ Demand for Informal Risk Management Strategy and Weather Index Insurance: Evidence from China

2021 ◽  
Author(s):  
Yingmei Tang ◽  
Huifang Cai ◽  
Rongmao Liu
Keyword(s):  
Risk Management ◽  
Field Experiments ◽  
Management Strategies ◽  
Insurance Companies ◽  
Index Insurance ◽  
Insurance Demand ◽  
Weather Index ◽  
Weather Index Insurance ◽  
Risk Management Strategies ◽  
The Government

AbstractIn the absence of formal risk management strategies, agricultural production in China is highly vulnerable to climate change. In this study, field experiments were conducted with 344 households in Heilongjiang (Northeast China) and Jiangsu (East China) Provinces. Probit and logistic models and independent sample T-test were used to explore farmers’ demand for weather index insurance, in contrast to informal risk management strategies, and the main factors that affect demand. The results show that the farmers prefer weather index insurance to informal risk management strategies, and farmers’ characteristics have significant impacts on their adoption of risk management strategies. The variables non-agricultural labor ratio, farmers’ risk perception, education, and agricultural insurance purchase experience significantly affect farmers’ weather index insurance demand. The regression results show that the farmers’ weather index insurance demand and the influencing factors in the two provinces are different. Farmers in Heilongjiang Province have a higher participation rate than those in Jiangsu Province. The government should conduct more weather index insurance pilot programs to help farmers understand the mechanism, and insurance companies should provide more types of weather index insurance to meet farmers’ diversified needs.

scholarly journals The nursing shortage: a worldwide problem

2002 ◽  
Vol 10 (3) ◽  
pp. 392-400 ◽  
Author(s):  
Rachel Z. Booth
Keyword(s):  
Health Care ◽  
Work Environment ◽  
Health Care System ◽  
Health Care Systems ◽  
Developed Countries ◽  
World Health ◽  
Insurance Companies ◽  
Advisory Group ◽  
Positive Effects ◽  
Care System

A worldwide shortage of nurses has been acknowledged by the multidisciplinary Global Advisory Group of the World Health Organization. The shortage is caused by an increased demand for nurses, while fewer people are choosing nursing as a profession and the current nurses worldwide are aging. The shortage applies to nurses in practice as well as the nurse faculty who teach students. The inter-country recruitment and migration of nurses from developing countries to developed countries exacerbates the problem. Although public opinion polls identifies the nurse as the person who makes the health care system work for them, the conditions of the work environment in which the nurse functions is unsatisfactory and must change. Numerous studies have shown the positive effects on the nurse of a healthy work environment and the positive relationships between nursing care and patient outcomes. It is important that government officials, insurance companies, and administrators and leaders of health care systems acknowledge and operationalize the value of nurses to the health care system in order to establish and maintain the integrity and viability of that system.

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