A Comparative Financial Performance Analysis Of Selected Life Insurance Companies In India

2019 ◽  
Vol 118 (10) ◽  
pp. 341-351
Author(s):  
Dr.T. Thirupathi ◽  
S. Subhashini
Keyword(s):  
Standard Deviation ◽  
Performance Analysis ◽  
Comparative Study ◽  
Financial Performance ◽  
Correlation Coefficient ◽  
Life Insurance ◽  
Insurance Industry ◽  
Research Paper ◽  
Insurance Companies ◽  
Statistical Tools

 Insurance is a contract between the insurer and the insured where the insurer agrees to compensate for the losses suffered by the insured in return for the payment of specified sum of amount called premium. Insurance Industry in India is a huge sector which contributes much more for the overall development of the country. Using various descriptive statistical tools like mean, standard deviation, ANOVA, correlation coefficient, this research paper analyses and make a comparative study on financial performance of selected life insurance companies in India.

Financial performance assessment using Grey relational analysis (GRA)

2019 ◽  
Vol 9 (4) ◽  
pp. 502-516 ◽  
Author(s):  
Anandarao Suvvari ◽  
Raja Sethu Durai S. ◽  
Phanindra Goyari
Keyword(s):  
Performance Analysis ◽  
Financial Performance ◽  
Life Insurance ◽  
Grey Relational Analysis ◽  
Statistical Distribution ◽  
Insurance Companies ◽  
Content Type ◽  
Relational Analysis ◽  
Grey Relational ◽  
Practical Implications

Purpose Traditional statistical methods to study the financial performance of any industry have many barriers and limitations in terms of the statistical distribution of the financial ratios, and, in particular, it considers only its positive values of it. The purpose of this paper is to estimate the financial performance of 24 Indian life insurance companies for the period from 2013 to 2016 using Grey relational analysis (GRA) proposed by Deng (1982) that accommodates the negative values in the analysis. Design/methodology/approach Financial performance of 24 Indian life insurance companies for the years from 2013–2014 to 2015–2016 is examined using a total of 14 indicators from capital adequacy ratios, liquidity ratios, operating ratios and profitability ratios (PR). The methodology used is GRA to obtain the Grey grades to rank the performance indicators, where higher relational grade shows better financial performance, and a lower score depicts the scope for improving the performance. Findings The results rank the insurance companies according to their financial performance in which Shriram insurance stands first with higher relational grade score, followed by the companies like IDBI Insurance, Sahara Insurance and Life Insurance Corporation of India. The main finding is that PR which have negative values are playing a crucial role in determining the financial performance of Indian life insurance companies. Practical implications This study has far-reaching practical implications in twofold: first, for the Indian life insurance industry, they have to concentrate more on PR for better financial health and, second, for any financial performance analysis, ignoring negative value ratios produce biased inference and GRA can be used for better inference. Originality/value This study is the first attempt to evaluate the financial performance of Indian life insurance using the GRA methodology. The advantage of GRA is that there is no restrictions on the statistical distribution of the data and it also accommodates the negative values, whereas all the other traditional methods insist on the statistical distribution of data, and, more importantly, they cannot handle negative values in the performance analysis.

scholarly journals Nexus of firm characteristics and financial performance of non-life insurance companies in the Southern African Development Community

2021 ◽  
Vol 18 (4) ◽  
pp. 95-110
Author(s):  
Thabiso Sthembiso Msomi ◽  
Celani John Nyide
Keyword(s):  
Financial Performance ◽  
Life Insurance ◽  
Insurance Industry ◽  
Generalized Method Of Moments ◽  
Operational Efficiency ◽  
Southern African Development Community ◽  
Equity Capital ◽  
Insurance Companies ◽  
Firm Characteristics ◽  
African Development

In almost all emerging and developed nations, the insurance industry is one of the most important participants of the financial services sector. As a result, the goal of this study is to investigate the firm characteristics and drivers of financial performance using 121 publicly traded non-life insurance companies from 16 Southern African Development Community (SADC) countries during the period from 2008 to 2019. The consolidated least squares and two-step generalized method of moments estimators were used to analyze a panel data set of 1,452 observations. The findings show that a lagged return on assets, equity capital, operational efficiency, leverage and investment capability are statistically significant determinants of financial performance in non-life insurance companies of SADC countries, even though equity capital, operational efficiency, and leverage are inversely significant. The insurance industry, policymakers, the state, and shareholders should consider these important variables when making decisions, and enhance their performance according to the findings. It is also suggested that the industry’s capital structures should be reformed to preserve a favorable balance of equity and debt amongst the businesses. Additionally, measures such as automated systems that may decrease operating costs should be used to improve financial performance.

Effective Customer Support System of Life Insurance Companies

2014 ◽  
Vol 4 (2) ◽  
Author(s):  
Rajesh Srivastava ◽  
Dr. Preeti Sharma
Keyword(s):  
Life Insurance ◽  
Economies Of Scale ◽  
New Technologies ◽  
Insurance Industry ◽  
Integrated Approach ◽  
Customer Experience ◽  
Disruptive Innovation ◽  
Insurance Companies ◽  
Insurance Business ◽  
Strategic Imperative

Increased competition, new technologies and the shift in power from the provider to the customer have produced unrelenting pressure on life insurance business. The market forces point to one overwhelming strategic imperative: customer-focused strategy. Customers are willing to build long-term relationships based on trust and mutual respect with firms that provide a differentiated and personalized service offering. Over the past few years, life insurance industry responded to intensified competition and high customer attrition by entering each other’s markets to capture greater “wallet share” and ostensibly lower their economies of scale. The service delivery process is influenced by quality of personnel, information technology, internal processes, human resource practices, and even an institution’s own change orientation. Now a day’s customers are demanding seamless, multi-channel sales and service experiences. Simultaneously, other players are looking for opportunities to invade this space or to redefine it through disruptive innovation. The result is forcing life insurance companies to examine a more balanced, integrated approach to the customer experience and growth. This research, we analyze the need, preference and satisfaction of customers in life insurance business and provide perspective on how to improve the customer experience.

Effectiveness of Customer Relationship Management Program in Insurance Companies

2013 ◽  
pp. 219-234
Author(s):  
Vikas Gautam
Keyword(s):  
Customer Relationship Management ◽  
Life Insurance ◽  
Insurance Industry ◽  
Private Insurance ◽  
Relationship Management ◽  
Management Program ◽  
Customer Relationship ◽  
Insurance Companies ◽  
Public And Private ◽  
Before And After

Customer relationship management in the insurance industry is in the nascent stage. Firms are framing new strategies to combat stiff competition. Public and private insurance companies are implementing customer relationship programs to attract more customers and retain existing customers. The objectives of this study are (1) to study the customer relationship management program of the Life Insurance Corporation of India, and (2) to assess the effectiveness of this customer relationship management program. The study is based on the opinion scores of 182 policyholders of Life Insurance Corporation of India, who have been with the company for more than the last five years. Based on the average opinion scores before and after the implementation of the Customer Relationship Management program, it was concluded that the program is effective, which was evidenced by the results obtained from statistical analysis (Paired sample t-test).

Determinants of Derivative Usage in the Life and General Insurance Industry: The Australian Evidence

2003 ◽  
Vol 06 (04) ◽  
pp. 405-431 ◽  
Author(s):  
Marc De Ceuster ◽  
Liam Flanagan ◽  
Allan Hodgson ◽  
Mohammad I. Tahir
Keyword(s):  
Life Insurance ◽  
Insurance Industry ◽  
Cost Effective ◽  
Insurance Companies ◽  
Long Tail ◽  
Life Insurers ◽  
Market Risks ◽  
Life Insurance Industry ◽  
General Insurance ◽  
Standard Operating

Core business and financial market risks are not easily reduced by standard operating procedures in insurance companies. Derivatives theoretically provide a cost effective vehicle to hedge these risks. This paper provides an empirical analysis of the determinants of derivative usage as well as the extent of derivative usage in the Australian insurance industry in both life and general insurance companies for the period 1997–1999. Empirical results for the Australian life insurance industry in general confirm the findings of UK and US based research. However, the Australian general insurance industry does not appear to follow the conclusions of previous literature. Our results indicate that for life insurers, the determinants of derivative usage were size, leverage and reinsurance. For the general insurance industry the determinants were size and the extent of long tail lines of business written. As regards the determinants of the extent of derivative usage, these were size and asset-liability duration mismatches for life insurers. For the general insurance industry the determinants of the extent of derivative usage were size, the extent of long tail lines of business written, and the reporting year.

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