scholarly journals Test of Asymmetric Information in the Nepalese Reinsurance Market

2021 ◽  
Vol 6 (1) ◽  
pp. 74-91
Author(s):  
Rajendra Maharjan
Keyword(s):  
Asymmetric Information ◽  
Imperfect Information ◽  
Market Failure ◽  
Causal Relation ◽  
Insurance Industry ◽  
Secondary Data ◽  
Insurance Market ◽  
Accurate Information ◽  
Business World ◽  
Economic Transaction

Background: The imperfect information can cause an imbalance of power which may lead to market failure thus collection of information is very essential in today’s business world therefore, the availability of the correct and accurate information is very crucial for making sound economic decisions. Thus, information asymmetry has been a very pertinent issue where economic transaction takes place insurance market is not far behind. As, reinsurance provides huge indirect capital to the insurance industry, providing correct information’s like premium earned, claim by the insurer to the reinsurer’s for fair pricing of reinsurance premium along ensuring top rated reinsurance company remain in Nepalese insurance industry. Objectives: This study aims to examine whether there remains asymmetric information in Nepalese insurance market with reinsurer’s perspective in different portfolios such as fire, marine, motor, engineering and miscellaneous as well as combining all portfolio in aggregate. Methods: The study uses descriptive and causal relation research design. Further, the study uses secondary data of 14 nonlife insurance from 2008/09 to 2018/19 with 168 firm year observations Result: Results of the study revealed that that only in fire, marine and overall portfolios there exists strong asymmetric information. Rest of the portfolio like motor, engineering and miscellaneous there is no evidence of existence of asymmetric information. Conclusion: Existence of asymmetric information is mostly an inevitable part as one party always tries to avoid information to others for the sake of benefit. However, the existence of asymmetric information to a large extent may lead to unhealthy relations between the parties and may bring the cold war distortion of relations. Thus, the finding of the studies is beneficial to the Nepalese nonlife insurers as insurers need to provide correct and accurate information to the reinsures Implication: To cope with asymmetric information in the Nepalese insurance industry, this study provides strong evidence to provide correct and accurate information’s to the reinsurers else top rated reinsurers might withdraw their presence from the Nepalese market which will have adverse effect in the insurance industry.

scholarly journals Issue of Adverse Selection in Health Insurance Market in Assam

2020 ◽  
Vol 8 (5) ◽  
pp. 1917-1920
Keyword(s):  
Health Insurance ◽  
Health Status ◽  
Asymmetric Information ◽  
Adverse Selection ◽  
Market Failure ◽  
Insurance Market ◽  
Poor People ◽  
Insurance Company ◽  
Insurance Policies ◽  
Health Insurance Market

Health insurance acts as an important support system, which protects the health as well as the wealth of people. But health insurance is hardly present in developing countries and in many countries it is totally absent. Presence of asymmetric information among the buyers and sellers makes the insurance market more complicated. Due to which insurance companies finds it is difficult to enter into the insurance market and eventually leads to market failure. To get rid of this problem insurance company increased the price of insurance policies. This has more impact on the poor people as they cannot meet their medical expenses. Adverse selection is the one of issues related to asymmetric information. This paper tries to examine the presence of adverse selection in health insurance market in Assam and about the various factors that influence on decision to buy an insurance policy. Based on primary survey this study used a probit model to analyses the presence of adverse selection in health insurance market. Findings of the study shows that adverse selection is absent in health insurance market but income is found to be an important determinant of insurance coverage. About one third of the population in Assam is living below poverty line and the cost of medical is too higher for the people. So health insurance is necessary in recent time to improve the health status of people in Assam. Therefore government should provide health insurance policies for poor people to improve their health status.

The Usefulness of Readability Formulas in the Insurance Industry

2015 ◽  
Vol 10 (4) ◽  
pp. 339-351
Author(s):  
Katarzyna Barczuk
Keyword(s):  
Final Section ◽  
Insurance Industry ◽  
Insurance Market ◽  
Insurance Companies ◽  
Text Readability ◽  
The Given ◽  
Readability Formulas

The aim of this paper is to characterize the most important methods which are used to determine the level of text readability. The author presents practical examples of the usage of chosen methods by foreign insurance companies. The final section of the study is completed with general conclusions relating to the application of the given solutions to the Polish insurance market. 

scholarly journals Salama Insurance: the need of an Islamic legal framework

2017 ◽  
Vol 1 (2) ◽  
pp. 35-44
Author(s):  
Hocine HASSANI ◽  
Mohamed HIMRANE
Keyword(s):  
Insurance Industry ◽  
Legal Framework ◽  
Regulatory Framework ◽  
Insurance Market ◽  
Insurance Companies ◽  
Road Map ◽  
Religious Convictions ◽  
Islamic Companies ◽  
Islamic Insurance

Many Muslims, for religious convictions are reluctant to take up conventional insurance as it is deemed to have uncertainty, gambling and interest, which are prohibited by religion. The purpose of this paper is to examine Islamic Insurance in Algeria and analyse a suitable regulatory framework. One can argue that the trend towards Islamic insurance in Algeria contributes to raising the level of insurance culture, which will help to mobilize more savings. After studying the topic, we can provide a road map to better regulating the Islamic insurance market because the Islamic companies could not function in the absence of an Islamic insurance act. In the absence of such a framework, regulators often treat Islamic insurance companies similarly to conventional insurance companies, which hinders the development of Islamic Insurance Industry.

scholarly journals EFFECT OF CONSUMER PROTECTION FUNCTION ON FINANCIAL PERFORMANCE OF SACCOS IN KENYA

2016 ◽  
Vol 1 (2) ◽  
pp. 48
Author(s):  
Jackson Mnago Ndungo’ ◽  
Dr. Olweny Tobias ◽  
Dr. Memba Florence
Keyword(s):  
Correlation Analysis ◽  
Financial Performance ◽  
Consumer Protection ◽  
Causal Effect ◽  
Pearson Correlation ◽  
Secondary Data ◽  
Target Population ◽  
Descriptive Statistics ◽  
Accurate Information ◽  
Inferential Statistics

Purpose: The study sought to determine the effect of consumer protection function on financial performance of SACCOs in Kenya.Methodology: The study adopted a descriptive research design. The target population comprised of registered 181 deposit-taking SACCOs as at 31st December 2014 and the three licensed CRBs in Kenya. Stratified random sampling was used in the study, where SACCOs were grouped into five respective strata which were then randomly selected. The SACCOs were grouped into five respective strata of government based, teachers based, farmers based, private institutions based and community based. The study sampled 135 of the 181 (74.5%) licensed deposit taking SACCOs since these were the only licensed deposit-taking SACCOs by 2014. The choice of the licensed deposit taking SACCOs in Kenya was very objective since it was possible to obtain information that is representative of Kenya. In addition, SACCOs form the smaller arm in the financial sector and in most cases deals with a larger group of clients from the informal sector as opposed to other financial institutions like banks. Both primary and secondary data were analyzed using SPSS software, and statistics generated included descriptive statistics and inferential statistics. The particular descriptive statistics used included frequencies and percentages while the particular inferential statistics included Pearson correlation analysis and regression. Correlation analysis was used to establish relationships between the consumer protection function and financial performances. Regression analysis was used to establish the significance of the variables and the degree of causal effect of the independent variables on the dependent variable. The hypotheses testing were conducted using simple regression model.Findings: From the data analysis the study concluded that there was a significant and positive relationship between consumer protection function and financial performance thus the existence of credit reference bureaus was suitable for improving financial performance of SACCOs. This implies that that Credit reference bureaus have led to consumer protection and increased customers’ rights. Similarly, credit reference bureaus have led to assumption that borrowing is a right regardless of capabilities. Credit reference bureaus have reduces undesired monopolistic actions of lenders. Lastly, credit reference bureaus have led to reduced bad “culture” on loan repayment.Recommendation: The study recommended that lenders should ensure that they have accurate information before listing the unworthy borrowers to avoid unnecessary legal battles which may affect performance as a measure for customer rights protection.

scholarly journals EFFECTIVENESS OF THE APPLICATION OF LEARNING MODELS DEVICE NETWORK APPLICATION INITIATIVE FIELD OF TECHNOLOGY SKILLS INFORMATION AND COMMUNICATION

2018 ◽  
Vol 1 (1) ◽  
pp. 1 ◽  
Author(s):  
Purnadi Purnadi ◽  
Tri Kuat ◽  
Budi Santosa
Keyword(s):  
Descriptive Analysis ◽  
Group Discussion ◽  
Secondary Data ◽  
Learning Model ◽  
Curriculum Innovation ◽  
Vocational High School ◽  
Business World ◽  
Analysis Techniques ◽  
Advantages And Disadvantages ◽  
Network Application

Competence of Vocational High School (VHS) students can be qualified, if students have competence in accordance with industry needs. The synchronization of the curriculum with the industry is absolutely necessary, so the school is not left behind by the development of the business world and the industrial world. The development of learning model should always be updated or done curriculum innovation, so that schools can synergize with DUDI. This study aims to (1) to know the implementation of the Device Network Application Initiative learning model, (2) to know the advantages and disadvantages of applying the Device Network Application Initiative learning model, (3) to know the effectiveness of the learning model of the Device Network Application Initiative for the Department of Technology and Information. The learning model of the Device Network Application Initiative (DNA Initiative) (the DNA curriculum) is the application of industrial curriculum to VHS education. Model innovation. The business world and the industrial world (dunia usaha dunia industry/DUDI) are more confident with students who get their learning materials of industry standard. This study uses a qualitative method. The research was conducted by observation, interview and documentation. Data analysis techniques using descriptive analysis techniques. Secondary data in the form of documentation is used to support the research. Focus Group Discussion by presenting DUDI, curriculum experts, industrial class managers, user / user graduates, teachers and testimonials, concluded that the implementation of the Device Network Application Initiative learning model for vocational students is very effective andappropriate. The contribution to schools is the implementation of process concept that schools are industrial environments or industrial replicas.

scholarly journals RASIO KEUANGAN UNTUK MENGUKUR KINERJA PERUSAHAAN TELEKOMUNIKASI YANG TERDAFTAR DI BURSA EFEK INDONESIA PADA TAHUN 2017-2019

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Arniyatun Febi Hastuti ◽  
Istiatin Istiatin ◽  
Fithri Setya Marwati
Keyword(s):  
Financial Performance ◽  
Quantitative Research ◽  
Stock Exchange ◽  
Good Condition ◽  
Secondary Data ◽  
Poor Performance ◽  
Business World ◽  
Financial Ratio ◽  
Financial Ratio Analysis ◽  
Solvency Ratio

Competition in the business world is increasingly competitive, so that companies are required to be able to control business activities better than competing companies. The purpose of this study is to determine the financial performance of telecommunications companies listed on the Indonesia Stock Exchange in terms of financial ratio analysis. The financial ratios used are liquidity ratios, solvability ratio, and profitability ratio. This type of research is qualitative and quantitative research. The research data used is secondary data obtained from the Indonesia Stock Exchange. The results of this study can be seen from the calculation of the liquidity ratio, solvency ratio, and profitability ratio at PT Indosat Tbk, PT XL Axiata Tbk, and PT Smartfren Tbk from 2017-2019 showing poor performance, while the solvency ratio and Net Profit Margin at PT Telekomunikasi Indonesia Tbk is already in good condition. Keywords: Financial Performance; Liquidity; Solvability; Profitability.

scholarly journals Role of Insurance Ombudsman and Grievance Management in Life Insurance Services in Indian Perspective

2014 ◽  
Vol 31 ◽  
pp. 9-13 ◽  
Author(s):  
Rajesh K. Yadav ◽  
Sarvesh Mohania
Keyword(s):  
Life Insurance ◽  
Large Volume ◽  
Service Provider ◽  
Secondary Data ◽  
Insurance Market ◽  
Research Papers ◽  
Constant Increase ◽  
Indian Perspective

A grievance is defined as a wrong or immoral suffered which creates ground for a complaint. In other words, dissatisfaction of customer on a product or service offered by a manufacturer or a service provider. The study focuses on the grievance management in life insurance services by the insurance ombudsman in India. In today’s scenario of insurance market, with the large volume of insurance transactions and huge customer size, it is an accepted fact that there will be growing number of policyholder grievances for every insurance providing company. The study is based on the secondary data collected from IRDA and research papers from various journals. The study concluded that in grievance management role of insurance ombudsman is very important and constant increase in number of complaints received by various Ombudsman all across the India shows that the policy-holders are gaining their confidence and trust in the institution of Insurance Ombudsman.

Insurance And Innovative Technologies Of Risks Management Of Ukrainian Companies In The Digital Economy

2021 ◽  
Vol 38 (4) ◽  
Author(s):  
Olena Gudz ◽  
Nataliia Prokopenko ◽  
Dmytro Korsakov ◽  
Nadiia Solovei
Keyword(s):  
Insurance Industry ◽  
Digital Technologies ◽  
Digital Economy ◽  
Insurance Market ◽  
Innovative Technologies ◽  
Cyber Insurance ◽  
Insurance Supervision

It was reviewed possibilities and importance of insurance and innovative technologies of companies' risks management in the digital economy, modern threats and risks of the Ukrainian companies, which are generated in the digital economy conditions, it was identified factors that hinder the development of cyber insurance and implementation of insuretech-solutions in Ukraine, it was revealed the prerequisites for their activation and defined directions and proposed measures for their expansion, justified expediency of introduction and use of innovative technologies and methods of insurance for risks management of Ukrainian companies in the digital economy.It is proved that adaptation of the insurance market to changes related to the digitization of companies, changes in the design of insurance instruments, the introduction of digital technologies in the organization of the insurance industry and cyber insurance, will contribute to improving the quality of insurance protection and stable profitability of Ukrainian companies, stimulating the introduction of new tools, methods and insuretech solutions, diversifying the range of insurance products, improving the forms and methods of insurance supervision, and more.

Envisaging Business Integration in the Insurance Sector

2011 ◽  
pp. 1412-1419
Author(s):  
Silvina Santana ◽  
Vítor Amorim
Keyword(s):  
Communication Systems ◽  
Information Science ◽  
Insurance Industry ◽  
Insurance Companies ◽  
Accurate Information ◽  
Electronic Business ◽  
Insurance Sector ◽  
New Business ◽  
Information And Communication ◽  
Potential Benefits

Data, information and knowledge are the heart of the insurance business. Each policy is composed of a set of data that can vary substantially. Risk management is a complex process that implies the availability of rich and accurate information and knowledge. In our fast moving world, connectivity and articulation between insurance industry players is therefore mandatory. Information and communication systems and technology (ICST) can provide this connectivity, allowing insurance partners to become closer and able to reach better negotiation, reducing response time and costs and probably creating new business opportunities (Strazewski, 2001). Insurance intermediaries (brokers and agents) are important players in this scenario. They act as consultants operating independently from insurance companies, being specialists in providing services to their clients, gathering the best solutions thanks to their vast knowledge of insurance companies’ products. Consequently, they achieve the best insurance contracts at the least cost (APROSE, 2005a, 2005b). Being a great value-adding activity, insurance mediation is also very complex. To operate in an effective and efficient way, intermediaries need to establish a good connection with all entities in the industry and electronic business can help insurance intermediaries’ business model in both business- to-business (B2B) and business-to-consumer (B2C) dimensions. In B2B, intermediaries establish relations with insurance companies, agents, banks and official entities. In B2C, intermediaries establish relations with their clients, giving them all the necessary assistance in a customized and fast way, since the first contact and during the policy’s whole life cycle, offering the best solutions according to their needs. However, in spite of all the apparent and potential benefits, intermediaries are not grasping all the advantages that electronic business can provide. This definitely relates to a very important issue, the integration level between the different players’ information systems. Analysing the situation from the intermediary perspective, this article exposes the problems faced by intermediaries and insurance companies all over the world when trying to integrate their business electronically and how these can be overcome so that partners can fully benefit from the opportunities here identified. The methodology used includes a deep case study involving a Portuguese intermediary having a significant level of integration with an insurance company. Results are compared with situations reported in other countries, leading to the conclusion that most of the problems and barriers here identified are being experienced worldwide. Conclusions bring significant implications for information science and technology (IS&T) and add important contribution and knowledge to research in this area.

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