scholarly journals Review on Insurance and their Present Status in Nepalese Economy

2020 ◽  
Vol 23 (1) ◽  
pp. 239-252
Author(s):  
Nirdosh Khanal
Keyword(s):  
Life Insurance ◽  
Financial Distress ◽  
Private Insurance ◽  
Secondary Data ◽  
Peak Level ◽  
Time Lapse ◽  
Insurance Market ◽  
Insurance Companies ◽  
Livestock Sector

The study aims to overview the types of insurance operating in Nepal, product delivered by them and status of insurance market in Nepalese economic development. The paper is based on secondary data and literature reviews. Insurance can be acknowledged as tool that shares risk, offers financial protection, minimizes the financial distress and accelerates the pace of economic growth. Insurance encourages saving in the society and collects the scattered fund in term of premium and invest for maximization. Presently 40 insurance companies (19 life insurance, 20 non-life insurance and 1 reinsurance) are operating in Nepal providing diversified range of services. Recently agriculture insurance on crop and livestock sector and health insurance policy is being offered through many governmental and private insurance companies of Nepal. Insurance Board statistics of 2017 revealed total premium of 46.97 billion rupees and 2.03% contribution in total gross domestic product. We cannot deny the fact that insurance market of Nepal is witnessing major obstacles in terms of new product innovation, service issues related to consumers and time lapse of long-term policy. The study concludes that with little improvisation based on market research and consumer awareness can lead insurance companies & the concept to a peak level in Nepal.

scholarly journals ANALISIS PERBANDINGAN KONDISI FINANCIAL DISTRES0S PADA PERUSAHAAN ASURANSI JIWA SYARIAH DI INDONESIA DAN MALAYSIA BERDASARKAN MODEL DISKRIMANASI ALTMAN

2019 ◽  
Vol 5 (12) ◽  
pp. 1035
Author(s):  
Tri Mei Wulandari ◽  
Dina Fitrisia Septiarini
Keyword(s):  
Life Insurance ◽  
Financial Distress ◽  
Balance Sheet ◽  
Secondary Data ◽  
Insurance Companies ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Discriminant Model ◽  
Significant Difference ◽  
The Difference

The purpose of this research is to know the difference of financial distress condition of sharia life insurance company in Indonesia and in Malaysia in period 2013-3105 with Atman Zscore model. Using a quantitative approach with Mann Whitney's test. Sampling method using purposive sampling. This study uses secondary data taken from the official website of each company. The data used are the company's financial statements covering balance sheet, and income statement. The results of the Altman Z-score discriminant model were then tested using spss version 22. Mann Whitney test results showed that there was a significant difference between the financial distress condition of sharia life insurance companies in Indonesia and Malaysia. The results of this study proves that the condition of sharia life insurance companies in Indonesia is better than in Malaysia.

Impact of Firm Specific Factors on Financial Performance of Life Insurance Companies in Nepal

2020 ◽  
Vol 1 (1) ◽  
pp. 39-52
Author(s):  
Janga Bahadur Hamal
Keyword(s):  
Financial Performance ◽  
Firm Size ◽  
Life Insurance ◽  
Stock Exchange ◽  
Explanatory Power ◽  
Secondary Data ◽  
Insurance Companies ◽  
Careful Examination ◽  
Specific Factors

The financial performance of life insurance companies determines the company’s ability to generate revenues and manage assets, liabilities and the financial interests of its stakeholders. However, there are limited studies discoursing major determinants of companies’ financial performance. To fulfill the gap, this study aimed to determine the effects of various firm-specific factors - firm size, liquidity ratio, short-term debt, long-term investment and firm age - on financial performance of life insurance companies in Nepal. The dependent variables influencing financial performance considered were return on assets (ROA) and return on equity (ROE). The study was based on secondary data of seven life insurance companies studied over a period of ten years, from 2009/10 to 2018/19. The data were collected from the financial statements published annually by the selected life insurance companies, Insurance Board of Nepal and Nepal Stock Exchange. In order to derive the impacts of firm-specific variables on ROA and ROE, descriptive statistics, correlation analysis and regression models were used. The study identified size and long-term investment to have negative and statistically significant relationship with financial performance. It also showed that higher the age of the company, the more difficult it will be to accumulate profit. The most influencing factors for the financial performance in Nepalese life insurance companies were firm size and long-term investment. Whereas, the explanatory power of liquidity seemed feeble. The findings elucidated that over-investment in long-term investments should be critically considered as it can have adverse effect on future profitability of the companies. Similarly, life insurance companies should increase their size only after careful examination over financial performance as it can result in diseconomies of scale and reduce the firm’s profitability.

scholarly journals Trends in Marketing of New Insurance Schemes and Distribution: An Empirical Study on Indian Life Insurance Sector

2015 ◽  
Vol 9 (2) ◽  
pp. 61-81
Author(s):  
Suman Kalyan Chaudhury ◽  
Sanjay Kanti Das
Keyword(s):  
Life Insurance ◽  
Financial Services ◽  
Financial Stability ◽  
Free Market ◽  
Insurance Industry ◽  
Private Insurance ◽  
Insurance Market ◽  
Insurance Companies ◽  
Current Status ◽  
Insurance Sector

Insurance has been an integral part of financial services system and recognised as a cornerstone of a country’s financial health and symbol of progress. Insurance provides for the financial security of citizens and their families. The present paper discusses the role of marketing in insurance distribution of life insurance sector in India as insurance offers a valuable investment advices and serves as an effective step towards both individual and national financial stability. The waves of globalisation have deeply influenced the insurance sector worldwide. Financial globalisation has been strongly supported by globalisation of insurance. With the increase in trade, direct investment and portfolio investment, there has been an ever growing demand for insurance services particularly in the emerging markets. Globalisation of insurance market, as a part of the overall process of liberalisation in emerging and other countries enabled the foreign insurance companies to enter in those countries and benefited both. Triggered by the sound fundamentals in global economy and internationalisation of world markets, several countries turned towards free market regimes in banking and insurance, putting an end to several decadeold state-owned controlled markets. There was a remarkable progress in the Indian insurance industry soon after the acceptance and adaptation of LPG in the year 1991. After 1991, the Indian life insurance industry has geared up in all respects, as well as it has been forced to face a lot of healthy competition from many national as well as international private insurance players. It is also reported by Swiss Re and Munich Re that there would be 20-25 percent growth in life and health insurance market by 2015, particularly in India and China. In this paper an effort is made to study the current status and challenges faced by the life insurance business houses in India.Journal of Business and Technology (Dhaka) Vol.9(2) 2014; 61-81

scholarly journals LIFE INSURANCE AS A MEANS OF PERSONAL FINANCIAL MANAGEMENT IN THE CONDITIONS OF PANDEMIC

2021 ◽  
Author(s):  
Olena Steshenko ◽  
Nataliiy Shestakova
Keyword(s):  
Life Insurance ◽  
Financial Literacy ◽  
Financial Management ◽  
Social Protection ◽  
Private Insurance ◽  
Developed Countries ◽  
Social Needs ◽  
Insurance Market ◽  
Insurance Companies ◽  
The Social

The article considers the importance of implementing life insurance programmes both to meet the social needs of policyholders and for the economic development of the country. The main trends and issues of the balance of money incomes and expenditures of the population are singled out. The main problematic aspects of personal financial management are highlighted. The importance of the in-depth study of the peculiarities of the formation of the life insurance market as a means of managing personal finances in a pandemic is substantiated. The economic content of life insurance and the peculiarities of this type of insurance in the conditions of the pandemic are highlighted. There are studied the main definitions of the concept of “life insurance”, in particular as a type of personal insurance, as a sub-branch of insurance, in Ukrainian legislation and the works of leading Ukrainian and foreign scientists. The conclusion on the essence of the concept of “life insurance” is made. The emphasis is placed on the special relevance of the pandemic impact on the insurance market. The article proposes to identify the main and additional life risks. There is justified the importance of mixed life insurance in connection with the gradual deterioration of the demographic situation, the reduction of the working population and the increase in the number of retirees. The main problems and factors hindering the development of this area of insurance are analysed. The state of the life insurance market of economically developed countries of the world is determined. The analysis of the European countries revealed the main factors that affect the size of insurance premiums. The influence of population dynamics and structure, level of financial literacy, level of trust in public bodies and private insurance companies, level of social protection, personal financial consulting and other factors on the formation of the life insurance market is also analysed. It is determined that more detailed insurance services by categories of clients are needed to ensure their specialization according to the needs of each market segment. For the full functioning of life insurance in Ukraine, the necessary measures are proposed, the implementation of which, on the one hand, will give impetus to the development of both the stock market and the economy and on the other hand, increase the social security of citizens.

scholarly journals Performance of the Polish Insurance Sector in the Second Decade of the 21st Century

2020 ◽  
Vol 15 (3) ◽  
pp. 251-264
Author(s):  
Ryszard Stempel
Keyword(s):  
Financial Performance ◽  
Life Insurance ◽  
Penetration Rate ◽  
Private Insurance ◽  
Insurance Market ◽  
Financial Supervision ◽  
Insurance Companies ◽  
Insurance Sector ◽  
Insurance Density ◽  
Statistical Yearbook

The study analyzes the performance of the Polish insurance sector between 2010 and 2019. The analysis was based on source materials from the Statistical Yearbook published by Statistics Poland (GUS), reports of the Polish Financial Supervision Authority (KNF) and the Polish Chamber of Insurance (PIU). The main indicators describing the performance of the insurance market, including its concentration, number of policies, market structure, competitiveness, consumer behavior, and the financial performance of insurance companies were identified and analyzed. The strengths and weaknesses of the Polish private insurance market in the last ten years were determined. The main weakness was a considerable decrease in the sale of life insurance (branch I) policies, which was manifested by a steady decrease in gross premium, a continued decline in insurance density and penetration rate, deteriorating financial performance, and a decrease in the number of branch I insurance companies. Considerably better results were reported in the non-life insurance segment (branch II), where gross earned premium continued to improve and increased by around 64% over the analyzed decade. The non-life sector was also characterized by a steady improvement in density (increase of PLN 436), penetration rate (increase of 0.07%) and financial performance (net technical result increased by PLN 4.2 billion, net profit increased by PLN 1.5 billion).

Reinsurance and Financial Performance of Non-life Insurance Companies in Ghana

2021 ◽  
pp. 0258042X2198994
Author(s):  
Charles Andoh ◽  
Susana Adobea Yamoah
Keyword(s):  
Life Insurance ◽  
Secondary Data ◽  
Insurance Companies ◽  
Panel Regression ◽  
Return On Assets ◽  
National Insurance ◽  
Timely Fashion ◽  
Jel Code ◽  
Solvency Ratio

The study examines how premiums ceded to a reinsurer affect the profitability of non-life insurance companies in Ghana. Secondary data on reinsurance ceded, combined ratio, assets, liabilities and return on assets for 20 non-life insurance companies over the period 2008–2018 were sourced from National Insurance Commission whilst interest and exchange rates variables were obtained from the Bank of Ghana. Panel regression model was employed for the analysis of the data collected. The results show that purchasing high levels of reinsurance alone does not affect the profitability of non-life insurance companies, but the combined effect of reinsurance and solvency ratio significantly impact their profitability. Managers of non-life insurance companies in Ghana should increase their ability to repay all financial obligations in the short, medium and long term in combination with reinsurance. This will enable insurers to stabilize growth, earn profits and meet their obligations to policyholders in a timely fashion. JEL Code: G22

scholarly journals AN EMPIRICAL STUDY FOR LIFE INSURANCES: A CASE STUDY OF PILIYANDALA REGION

2021 ◽  
Vol 5 (11) ◽  
Author(s):  
Lakshani Jads ◽  
Napagoda Nadn
Keyword(s):  
Life Insurance ◽  
Insurance Industry ◽  
Human Life ◽  
Investment Decision ◽  
Market Competition ◽  
Private Insurance ◽  
Secondary Data ◽  
Insurance Companies ◽  
Financial Contract ◽  
The Impact

Life insurance is a very significant financial contract due to uncertainty of human life. It pave the way for policy holders to plan the future as their beneficiaries safely. However, the insurance industry plays a huge role in both private and public sector as a result of globalization and commercialization. Therefore, a vital competition is exists between private insurance companies in order to expand their businesses all over the world and to gain more profits. Hence, insurance companies often tend to offer different modes of life insurances to gladden customers. In the study, it has been considered the three main life insurances which are; whole life insurance, Term life insurance and Endowment life insurance. The aims of this study are to explore the impact of various demographic factors on customers life insurance investment decision and predict policy holder’s behaviors. This research is significant to understanding existing market trends, develop new trading stations and facing market competition. Multinomial logistics regression was used to analyse the secondary data. The results of the quest indicates that the age, marital status, monthly income, gender, and monthly instalment are significant factors for purchasing a life insurance. Furthermore, endowment life insurance is the most efficient life insurance category in Piliyandala region. However, the insurer is able to form new explorations by conducting this research for other regions

Indian Life Insurance Market and Corporate Performances: A Study of Selected Firms

2016 ◽  
Vol 4 (1) ◽  
Author(s):  
Joy Chakraborty ◽  
Partha Pratim Sengupta
Keyword(s):  
Market Share ◽  
Life Insurance ◽  
Market Concentration ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Insurance Sector ◽  
Life Insurers ◽  
Company Limited

In the pre-reform era, Life Insurance Corporation of India (LICI) dominated the Indian life insurance market with a market share close to 100 percent. But the situation drastically changed since the enactment of the IRDA Act in 1999. At the end of the FY 2012-13, the market share of LICI stood at around 73 percent with the number of players having risen to 24 in the countrys life insurance sector. One of the reasons for such a decline in the market share of LICI during the post-reform period could be attributed to the increasing competition prevailing in the countrys life insurance sector. At the same time, the liberalization of the life insurance sector for private participation has eventually raised issues about ensuring sound financial performance and solvency of the life insurance companies besides protection of the interest of policyholders. The present study is an attempt to evaluate and compare the financial performances, solvency, and the market concentration of the four leading life insurers in India namely the Life Insurance Corporation of India (LICI), ICICI Prudential Life Insurance Company Limited (ICICI PruLife), HDFC Standard Life Insurance Company Limited (HDFC Standard), and SBI Life Insurance Company Limited (SBI Life), over a span of five successive FYs 2008-09 to 2012-13. In this regard, the CARAMELS model has been used to evaluate the performances of the selected life insurers, based on the Financial Soundness Indicators (FSIs) as published by IMF. In addition to this, the Solvency and the Market Concentration Analyses were also presented for the selected life insurers for the given period. The present study revealed the preexisting dominance of LICI even after 15 years since the privatization of the countrys life insurance sector.

scholarly journals Mechanisms of Protection from Interest Rate Risk with Reference to the Life Insurance Market in Montenegro

2018 ◽  
Vol 7 (1) ◽  
pp. 17-42
Author(s):  
Milijana Novović Burić ◽  
Vladimir Kašćelan ◽  
Milivoje Radović ◽  
Ana Lalević Filipović
Keyword(s):  
Risk Management ◽  
Interest Rate ◽  
Life Insurance ◽  
Financial Management ◽  
Financial Stability ◽  
Interest Rate Risk ◽  
Economic Security ◽  
Insurance Market ◽  
Insurance Companies ◽  
Rate Risk

Abstract Insurance companies are facing major challenges that point to the need for control process and risk management. Risk management in insurance has a direct impact on solvency, economic security, and overall financial stability of insurance companies. It is very important for insurance companies to adequately calculate risks to which they are exposed. Asset liability management (ALM), as an integrated approach to financial management, requires simultaneous decision-making about categories and values of assets and liabilities in order to establish the optimum volume and the ratio of assets and liabilities, with the understanding of complexity of the financial market in which financial institutions operate. ALM focuses on a significant number of risks, whereby the emphasis in this paper will be on interest rate risk which indicates potential losses that may reflect in a lower interest margin, a lower value of assets or both, in terms of changes in interest rates. In the above context, the aim of this paper is to show how to protect from interest rate changes and how these changes influence the insurance market in Montenegro, both from the theoretical and the practical point of view. The authors consider this to be an interesting and very important topic, especially because the life insurance market in Montenegro is underdeveloped and subject to fluctuations. Also, taking into account the fact that Montenegro is a country that has been making serious efforts to join the EU, it is expected that insurance companies in Montenegro will strengthen their financial position in the market even using the ALM traditional techniques, which is shown in this paper.

scholarly journals A STUDY ON PREFERENCE OF POLICYHOLDERS ABOUT PUBLIC AND PRIVATE LIFE INSURANCE COMPANIES IN TIRUNELVELI DISTRICT

2018 ◽  
Vol 6 (4) ◽  
pp. 105-110
Author(s):  
I. Meenakshi
Keyword(s):  
Public Sector ◽  
Life Insurance ◽  
Private Insurance ◽  
Marketing Strategies ◽  
Private Life ◽  
Insurance Companies ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Public And Private ◽  
New Policies

There are currently, a total of 24 life insurance companies in India. Of these, Life Insurance Corporation of India (LIC) is the only public sector insurance company. All others are private insurance companies. The Life Insurance Corporation of India (LIC) is the largest life insurance company in India and also the country's largest investor. More and more new private insurance companies are coming up year after year. And, these new and private life insurance companies adopt aggressive marketing strategies to introduce their products and to tap the potential policyholders. It is witnessed that new policies like ULIPs are introduced by these new private life insurance companies. It is in this concept this study has been undertaken to assess and analyze the preference of policyholders towards insurance services offered by public and private life insurance companies in Tirunelveli district.

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