scholarly journals An Analysis of Insurance as An Investment Strategy

2019 ◽  
Vol 13 (01) ◽  
Author(s):  
Tulja Bhavani
Keyword(s):  
Insurance Industry ◽  
Investment Strategy ◽  
Pension Plans ◽  
Insurance Companies ◽  
Insurance Markets ◽  
Middle Classes ◽  
General Insurance ◽  
The Us ◽  
Indian Insurance ◽  
India And China

Death and Risk in life are certain but Date of Death and Risk are uncertain and this is the only reason that we are happy today. Uncertainty is the fundamental fact of life and this uncertainty leads to fear of risk in life. In spite of taking all necessary precautions, accidents occur. So, Insurance is one of the best techniques to face this uncertainty. It is worth interesting to note the origin of the concept of Insurance is as old as the Second Civilization of India that is the Aryan Civilization way back in 1000BC. The Aryan Civilization or Vedic Civilization gave the idea of “Yougkshema” means a promise to provide community insurance to the risk bearers which are clearly visible in the Indian Scriptures. The global insurance industry is one of the largest sectors of finance. It ranges from consumer to corporate and industrial insurance, and even reinsurance, or insurance of insurance. The major insurance markets of the world are obviously the US, Europe, Japan, and South Korea. Emerging markets are found throughout Asia, specifically in India and China, and are also in Latin America. Indian insurance companies offer a comprehensive range of insurance plans, a range that is growing as the economy matures and the wealth of the middle classes increases. The most common types include: term life policies, endowment policies, joint life policies, whole life policies, loan cover term assurance policies, unit-linked insurance plans, group insurance policies, pension plans, and annuities. General insurance plans are also available to cover motor insurance, home insurance, The present paper aims at understanding the awareness of insurance as an investment strategy with special reference to Angel Broking.

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.

scholarly journals Value Investment Based on Data Analysis with Comparison of Three Insurance Corporations in the US

2020 ◽  
Vol 214 ◽  
pp. 01001
Author(s):  
Jinnan Sun
Keyword(s):  
Data Analysis ◽  
Crucial Role ◽  
Insurance Industry ◽  
Investment Analysis ◽  
Insurance Companies ◽  
Specific Data ◽  
The Us ◽  
Investment Advice

Value investment analysis plays a crucial role in people’s judgment of whether an enterprise is worthy of continuing investment. Because it helps people reduce the likelihood of making a bad investment, whether it’s worth it, and how do you combine the various factors. The purpose of this paper is to analyze the value of the company’s investment in the insurance industry. AIG, ALL and MET were selected from a large number of insurance companies. Using P/E and P/S ratio to compare the prospects of several companies of the same type through specific data, investment analysis. Finally, the best companies to invest in among the three companies are obtained by combining the display situation, and give final investment advice.

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.

Market structure, efficiency and profitability of insurance companies in Ghana

2015 ◽  
Vol 10 (4) ◽  
pp. 648-669 ◽  
Author(s):  
Abdul Latif Alhassan ◽  
George Kojo Addisson ◽  
Michael E. Asamoah
Keyword(s):  
Market Structure ◽  
Life Insurance ◽  
Insurance Industry ◽  
Consumer Welfare ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Markets ◽  
Ample Evidence ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of the regulatory-driven market structure on firm pricing behaviour by testing the structure-conduct-performance (S-C-P) hypothesis for both life and non-life insurance markets in Ghana. Design/methodology/approach – Using a panel data on 14 life and 22 non-life insurers from 2007 to 2011, the authors employed the Herfindahl Hirschman Index and concentration ratio as proxies for the S-C-P hypothesis while efficiency scores were estimated using the data envelopment analysis technique to proxy for the efficient structure (ES) hypothesis. The dependent variable, profitability was measured as return on assets while controlling for size, underwriting risk, leverage, GDP growth rate and inflation. The models were estimated using the panel corrected standard errors of Beck and Katz (1995) and random effects estimations. Findings – The results from the empirical estimation provide ample evidence in support for ES hypothesis for both life and non-life insurance markets. While conflicting results was found for SCP hypothesis in the non-life insurance market, it was rejected in the life insurance market. The findings also point to an increasing level of competition in both life and non-life insurance industry in Ghana though they still remain concentrated with the life insurance sector having high levels of efficiency compared to the non-life sector. Practical implications – The findings of the study will enhance the understanding of firm behaviour in the new markets created to shape regulatory and competition policies of the regulator to promote consumer welfare while ensuring a stable industry to enhance its role in economic development. Originality/value – This is the first study to test the market power and efficient hypotheses on the insurance industry in Ghana. To the best of the author’s knowledge, this study is the first to examine the determinants of profitability in the non-life insurance market.

scholarly journals MEASURES TO IMPROVE LIFE INSURANCE PROFITABILITY IN INDIA

2021 ◽  
Vol 5 (2) ◽  
pp. 98-105
Author(s):  
Ramesh Kumar Satuluri ◽  
Raavi Radhika
Keyword(s):  
Life Insurance ◽  
Insurance Industry ◽  
Jel Classification ◽  
Insurance Market ◽  
Insurance Companies ◽  
Bottom Line ◽  
Life Insurance Industry ◽  
Policy Measures ◽  
Global Statistics ◽  
Indian Insurance

With ~32 crore policies in-force and over ~11000 branches across locations, Life Insurance Industry in India is the 10th largest across the globe in terms of premium contribution. India's share in Global Life Insurance Market was 2.73% during 2019. The life insurance industry is also one of the largest employers with both direct and indirect employment. Life Insurance penetration in India is at 2.82% and density at 58 USD, which is way below the global statistics. This gives immense opportunity for global players to venture into the Indian insurance market. With a proposal for an FDI hike to 74%, we are expecting many big players to enter the Indian market. However, the attractiveness of the industry not depends solely on the market opportunity but also on the bottom line, which is profitability. Indian Insurance Industry is one of the highly regulated markets across the globe and perceived to be the lowest profit-making insurance market. Hence, the need for the study to improve the profitability of life insurance companies in India through structural and policy measures. JEL Classification Codes: G22, I13, O16, A10, E22, G10.  

Productivity Growth Assessment of Public and Private Sector General Insurance Companies in India

2016 ◽  
Vol 3 (2) ◽  
pp. 50-61
Author(s):  
Abhijit Sinha
Keyword(s):  
Productivity Growth ◽  
Insurance Industry ◽  
Malmquist Index ◽  
Insurance Companies ◽  
Public And Private ◽  
The Public ◽  
General Insurance ◽  
Public And Private Sector ◽  
High Level ◽  
Growth Assessment

The researcher in this paper has looked into the general insurance industry in India opening up of the sector to the private players in 2000. The objective of the study is to determine the total factor productivity growth in the general insurance industry in India. The study is based on the analysis of data covering twelve general insurers (including four from the public sector) for the period 2004-05 to 2011-12. For the purpose of growth assessment, Malmquist Index is computed that is composed of two components: Technical progress and technological progress. From the study, it is observed that a high level of inconsistency exists in the industry. The overall growth during the study period has been minimal. The technological change shows a negative growth in the case of all the insurers. Whatever growth is observed is due to the efficiency improvement, thereby implying movement towards the frontier.

scholarly journals An Analysis of the Performance of General Insurance Companies in India

2019 ◽  
Vol 8 (1) ◽  
pp. 20-27
Author(s):  
Soheli Ghose ◽  
Raman Kumar
Keyword(s):  
Insurance Industry ◽  
Secondary Data ◽  
Annual Reports ◽  
Insurance Companies ◽  
Insurance Sector ◽  
General Insurance ◽  
Growth Prospects ◽  
Rapid Pace ◽  
The Stability ◽  
Pro Forma

The General Insurance Industry in India is growing at a very rapid pace. This is an empirical research based on secondary data collected from Annual Reports and Pro-forma Schedules of IRDA. An Excel data Model was created to taken in the core figures of GWP, NEP, NP and others of 4 General Insurance Majors to calculate other relevant ratios as need for the analysis. The objectives of this study are to analyze a few General Insurance companies in India and core Ratios related to the Insurance Sector only and to comparatively analyse Retention ratio, Total Claims Incurred, Earned Incurred Loss Ratio, and Combined Ratio. The conclusion report has been framed on the basis of which company seems to be the best with respect to its Future Growth prospects, Risk prospects and the stability of its growing business. Out of the companies analyzed, TATA-AIG GENERAL INSURANCE has a good future prospect.

scholarly journals Life Is Cheap: Using Mortality Bonds to Hedge Aggregate Mortality Risk

2007 ◽  
Vol 7 (1) ◽  
Author(s):  
Leora Friedberg ◽  
Anthony Webb
Keyword(s):  
Mortality Risk ◽  
Risk Premium ◽  
Insurance Industry ◽  
Low Cost ◽  
Pension Plans ◽  
Insurance Companies ◽  
Capital Asset Pricing ◽  
Asset Pricing Models ◽  
Substantial Risk ◽  
Mortality Improvements

Abstract Insurance companies, employer pension plans, and the U.S. government all provide annuities and therefore assume aggregate mortality risk. Using the widely-cited Lee-Carter mortality model, we quantify aggregate mortality risk as the risk that the average annuitant lives longer than is predicted by the model, and we determine that annuities expose providers to substantial risk. We also find that other recent actuarial forecasts lie at the edge or outside of Lee-Carter's 95% confidence interval, suggesting even more uncertainty about future mortality.We then evaluate the implications of aggregate mortality risk for insurance companies; this analysis can be extended to private pension providers and Social Security. Given the forecasts of the Lee-Carter model, we calculate that a markup of 3.9% on an annuity premium (or shareholders' capital equal to 3.9% of the expected present value of annuity payments) would be required to reduce the probability of insolvency resulting from aggregate mortality shocks to 5%, and a markup of 5.7% would reduce the probability of insolvency to 1%. Based on the same model, we find that a projection scale commonly referred to by the insurance industry underestimates aggregate mortality improvements and would leave annuities underpriced.Annuity providers could manage aggregate mortality risk more efficiently by transferring it to financial markets through mortality-contingent bonds. We calculate the returns that one recently proposed mortality bond would have paid had it been available over a long period. Using both the Capital and the Consumption Capital Asset Pricing Models, we determine the risk premium that investors would have required to hold the bond. At plausible coefficients of risk aversion, annuity providers should be able to hedge aggregate mortality risk via such bonds at very low cost.

scholarly journals Digital Transformation In Indian Insurance Industry

2021 ◽  
Vol 12 (4) ◽  
pp. 310-324
Author(s):  
Ramesh Kumar Satuluri, Et. al.
Keyword(s):  
Positive Impact ◽  
Insurance Industry ◽  
Digital Transformation ◽  
Insurance Companies ◽  
Bottom Line ◽  
Multiplier Effect ◽  
Sales Process ◽  
Draft Regulation ◽  
Indian Insurance

This paper titled “Digital Transformation in Indian Insurance Industry” is an attempt to give deep insights to all the readers on digital transformation in insurance space. Technological innovations are extensive and all encompassing.  Disruptions are not industry specific and insurance industry is no exception to this. Recently regulator published a draft regulation on sandbox concept, which permits carriers to innovate their offering to end user. This is led by fintech and insure tech companies and carriers have structured digital boards to take this revolution forward.Major findings of this paper are usage of block chain technology and data security in insurance industry. With companies constituting digital boards, pandemic has only acted like a tailwind for the digital push wherein entire sales process is migrated to digital way of selling. This move has a multiplier effect on customer reach, cost efficiency and service precision. Customers who are keen to have the best in terms of technological innovation will be delighted with the advancement in digital transformation.Also with big data and analytics, we are coming back to risk based pricing, which is proportionate to the risk borne by the customer. This is still evolving in life insurance as the deployment of wearables is at a nascent stage.Newer technologies like AI and machine learning are facilitating companies register higher growth both on cross and upsell opportunities.  This will indisputably have an immense and long term positive impact on the bottom line of most insurance companies thus enhancing profitability.Researcher concludes that digital innovation will surely have a great and positive impact on profitability of insurance companies.

Strategies for Indian Insurance Companies – Post Liberalisation

2002 ◽  
Vol 6 (2) ◽  
pp. 41-52
Author(s):  
Rajat Shuvro Bakshi
Keyword(s):  
Driving Force ◽  
Insurance Industry ◽  
The State ◽  
Insurance Companies ◽  
State Control ◽  
Theoretical Concepts ◽  
The Future ◽  
Indian Insurance

The process of evolution for the Indian Insurance Industry has been rather slow due to prolonged state control. This article starts with theoretical concepts and examines them in the light of the post liberalisation scenario, with a touch of strategizing for the future. Hence the role of Insurance Regulatory and Development Authority coming into existence is so very significant. Trust of customers will remain the major driving force and to build it overnight by the private players, is not an easy proposition, especially when the state -owned very large insurers are gearing themselves up for competition.

Sign in / Sign up

Export Citation Format

Share Document