scholarly journals Impact of Lapsed Policies in Life Insurance Industries of Nepal

2020 ◽  
Vol 3 (3) ◽  
pp. 64-76
Author(s):  
Ram Koju ◽  
Susil Dev Subedi ◽  
Laxmi Koju
Keyword(s):  
Life Insurance ◽  
Generalized Method Of Moments ◽  
Sustainable Growth ◽  
Lapse Rate ◽  
Empirical Estimation ◽  
Net Worth ◽  
Insurance Sector ◽  
Premium Income ◽  
Cash Inflow ◽  
The Impact

Growth and competition are rapidly rising in life insurance sector. Companies have challenge to stay in the market and earn profit as well as build trust among the end users. In this context, companies have to expand business by selling more life insurance policies. However, only selling new policies might not be the solution to increase profit. Thus, company needs to ensure minimum to zero lapse rates for the sustainable growth of the company. This study investigated the impact of lapse rate and revival rate on net worth, profitability, life fund, and total premium income of life insurance industries in Nepal over the period 2010-2019. The study employed Generalized Method of Moments (GMM) for empirical estimation. The empirical results showed the lapse rate, profitability, revival rate and surrender rate of 23.91%, 2.64%, 88.82% and 3.83%, respectively in the life insurance industries in Nepal during the 10 years’ period. The lapse rate was significantly negatively correlated with life fund and the total premium income with the–model coefficients of 0.1474065 and -0.19244, respectively. Moreover, the empirical estimation showed a significant positive correlation between lapse rate and profitability. This might be because high lapse rate lowers the provision of unexpired risk and life fund resulting in higher amount of profitability. The revival rate was significantly positively correlated with the profitability. This might be because higher revival rate increases the renewal income of a company, resulting in more funds available for investment thereby bringing positive cash inflow for the company. However, the revival rate did not show any significant association with net worth, life fund and total premium income.

scholarly journals Impact of premium reserve on life insurance investments in the Western Balkans

2021 ◽  
Vol 16 (2) ◽  
pp. 355-376
Author(s):  
Jelena Tomašević ◽  
Milijana Novović-Burić ◽  
Ljiljana Kašćelan ◽  
Vladimir Kašćelan
Keyword(s):  
Financial Market ◽  
Life Insurance ◽  
Insurance Companies ◽  
Strong Positive Correlation ◽  
Western Balkans ◽  
Insurance Sector ◽  
Correlation And Regression Analysis ◽  
Country Level ◽  
Financial Investments ◽  
The Impact

The growing importance of life insurance in the world imposes a greater need for research in this area, particularly in the Western Balkans where the trend of growth has been closely accompanied by life insurance for the past two decades. Taking into consideration that life insurance companies are significant participants in the financial market, this research paper examines the impact of the premium reserve on the volume of financial investments of life insurance companies in Western Balkan countries, based on aggregate data on country level. In order to test its effect, linear correlation and regression models were used, based on data collected for the period 2006-2016. Additionally, comparative analysis was used to compare the position of life insurance companies in financial markets. The results obtained by applying correlation and regression analysis showed that there is a strong positive correlation between premium reserve and financial investments in all of the aforementioned countries in the region. This result is an important strategic guideline for the regulators and policymakers to make advancements in the life insurance sector as well as in the financial market of the Western Balkans.

E-commerce and portfolio allocations: A study on the Indian life insurance customers

2020 ◽  
Vol 1 (1) ◽  
pp. 36-46 ◽  
Author(s):  
Rajeev Kumar Ranjan ◽  
Shoaib Alam Siddiqui ◽  
Nitin Thapar ◽  
Shyam Singh Chauhan
Keyword(s):  
Life Insurance ◽  
Insurance Industry ◽  
Personal Selling ◽  
Minimum Cost ◽  
Online Marketing ◽  
Insurance Companies ◽  
Purchase Behavior ◽  
Outcome Variable ◽  
Insurance Sector ◽  
The Impact

The paper attempts to find the impact of technology on the purchase behavior of consumers for insurance products. With the use of technology and e-commerce the adoption of insurance products had undergone a transformation. With the entry of private players the insurance sector has become very competitive (Jampala & Rao, 2005). With increased competition the life insurance industry is adopting innovative marketing practices to tap a larger market; the companies therefore are developing their capabilities of access-based penetration, distribution and sale to customers. The advances in technology have changed the way insurance products were marketed in India. Apart from the traditional agency channel, the companies are also exploring alternative channels like brokers, rural channels, online marketing, and e-commerce, etc. The personal selling based channels are the new innovative methods offering an effective reach at a minimum cost. To analyze the consumer purchase behavior the study used two-way ANOVA to determine the effect of two nominal predictor variables on a continuous outcome variable. The results of the study will assist the life insurance companies in improving their operations and efficiency.

Consumers Awareness towards Insurance Companies and their

2017 ◽  
Vol 3 (2) ◽  
Author(s):  
G. Suresh Babu
Keyword(s):  
Life Insurance ◽  
Insurance Industry ◽  
Private Insurance ◽  
Insurance Companies ◽  
Private Companies ◽  
Insurance Sector ◽  
The World ◽  
Innovative Products ◽  
Rate Of Returns ◽  
The Impact

The insurance sector is growing rapidly all over the world. The insurance industry is gaining key position in the world economy and playing a significant role to cover the life and business risk of millions. At present, the insurance industry is in a nascent stage. The impact of privatization in risk business in India has shown its impact on transformation from the state of monopoly to mushrooming companies offering innovative products to the Indians. The growth in the life insurance sector has shown new heights and the functioning of private companies has given tough challenge to Life Insurance Corporation of India. Within a short span of time, private insurance companies have acquired more than 25 per cent of the life insurance market. Many changes have taken place in the processes and procedures of insurance business in terms of its format and products as well the mindset, motives, interests, and expectations on the part of the customers also. The customers have become more vigilant, calculative and calibrated not only in terms of risk coverage but look forward for safety of investment and higher rate of returns on the saving in insurance sector

scholarly journals THE ANALYSIS OF CURRENT TRENDS IN THE INSURANCE SEGMENT OF THE FINANCIAL MARKET OF UKRAINE

2021 ◽  
pp. 130-139
Author(s):  
Yuriy Klapkiv ◽  
Volodymyr Svirskyi ◽  
Roman Shchur
Keyword(s):  
Life Insurance ◽  
Financial Literacy ◽  
Insurance Industry ◽  
Cash Flows ◽  
The State ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Sector ◽  
Current Trends ◽  
The Impact

Purpose. Analysis of the state of the insurance services market of Ukraine, identification of the main problems of its development in modern conditions and determination of directions for improving the functioning of the insurance services market in Ukraine. Methodology of research. The scientific and methodological basis for the article are scientific works, monographs, materials of professional publications, Internet resources. During the research the methods of analysis and synthesis, system-functional method and method of comparative studies were used, with the help of which most modern tendencies, phenomena and processes in the market of insurance services are explained. Findings. The article is devoted to current trends of the insurance in Ukraine. The study examines the main trends in its development during 2016-2020. The dynamics of the number of insurance companies, the main indicators of insurers, the structure of gross and net insurance premiums of domestic insurers, reinsurance indicators are analyzed. Based on a dataset of Ukrainian insurance industry, we analyse the impact of transformation of the insurance sector. Based on the analysis, the main problems of the insurance services market of Ukraine are identified and proposals for improving its development are formulated. The results illustrate major tasks the industry is facing: enhancing the customer experience, improving its business processes, offering new products, and preparing for competition with other industries, imperfection of regulatory regulation of the insurance sector; underdevelopment of the life insurance segment and other types of insurance (agricultural, environmental, catastrophic risks and life insurance, cyber risks); low solvency of potential consumers of insurance services, low level of capitalization of insurance companies, lack of insurance culture, distrust of the insurance institution; fraud and neglect of the rights of policyholders by some insurance companies; low financial literacy of policyholders. Moreover, we identify key areas of change of the insurance services market of Ukraine: creation of a centralized online database of insurance contracts; improving the system of taxation of insurance activity; adaptation of Ukrainian legislation in the field of insurance to EU legislation; introduction of high technologies in insurance services; improvement of marketing management; creation of an export insurance system by establishing a special organization for export insurance and financing; introduction of insurance culture and traditions. Originality. A comprehensive approach to the analysis of the state of the insurance market as an important component of the financial sector of the economy with most of its inherent characteristics, functions and principles; economic space in which institutional units for the implementation of insurance services interact; a set of orderly cash flows between the subjects of the insurance market. Practical value. The results of the study can be the basis for further research to systematically address practical problems in this area, development and implementation of measures aimed to achieve accelerated progressive development of the insurance market to ensure socio-economic growth. Key words: insurance, insurance services, insurance services market.

scholarly journals Determinants of Corporate Cash Holdings in Textile Sector of Pakistan

2021 ◽  
Vol VI (I) ◽  
pp. 182-199
Author(s):  
Hira Ali Khan ◽  
Wisal Ahmad ◽  
Ihtesham Ur Rahman
Keyword(s):  
Capital Expenditure ◽  
Generalized Method Of Moments ◽  
Cash Holdings ◽  
Dynamic Panel Data ◽  
Easy Access ◽  
Open Market ◽  
Empirical Estimation ◽  
The Impact ◽  
Textile Sector ◽  
Stream Instability

This study analyzes the impact of tools used for cash holding in the textile sector of Pakistan for the period of 14 years (2005-2018). The tools consist of firm dimension, influence, capital expenditure, expansion opportunity, liquidity, cash stream and cash stream instability and extra expenditure. Unbalanced dynamic panel data is engaged for empirical estimation. For estimation of consistent result active panel information i-e Two-step scheme widespread process of moments is used. System generalized method of moments (GMM) design estimation reveals that compact dimension control, capital expenses, cash stream, cash stream instability and extra dummy affect cash holdings positively while liquidity and growth opportunities affect cash holdings negatively. Lagged cash is used as an instrumental variable and its positive implication (coefficient) reveal that the prior year reserve of cash have a significant impact on the current year and, suggesting these companies have a target level of cash. The academic implication indicates that larger companies in the textile sector retain more cash and easy access to diversify and advance sophisticated technology projects and furthermore will compete in the open market economy.

scholarly journals Currency redenomination and firm value growth: Lessons from a developing economy

2021 ◽  
Vol 18 (1) ◽  
pp. 223-235
Author(s):  
Ferina Marimuthu ◽  
Haruna Maama
Keyword(s):  
Firm Value ◽  
Negative Impact ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Significant Implication ◽  
Economic Activities ◽  
Firm Level ◽  
Net Worth ◽  
The Impact ◽  
Value Growth

The redenomination of the Cedi with the new Ghana Cedi in 2007 was met with skepticism and outright opposition in certain sectors of the economy. Businesses feared that this would decrease their net worth. Despite the time that has elapsed since the redenomination exercise, it is yet to be proven whether the fears of individuals who predicted its negative impact on firms’ performance had been confirmed or the optimism of those that expected its positive impact on firms’ performance has prevailed. Therefore, the study examined the impact of the cedi redenomination on firms’ value growth in Ghana. The study used the financial records of listed firms in Ghana, five years before and five years after the redenomination of the currency. The firms’ value growth was measured based on the growth in Tobin’s Q and return on assets (ROA). A generalized method of moments (GMM) estimation technique was adopted for the regression analysis. The results indicated that the firms’ value increased, whilst profitability decreased in the same year. Moreover, the results showed sustained growth in the profitability of firms after the redenomination exercise. The study concludes that the currency redenomination improved the firms’ profitability, whilst their value was not improved. The significant implication of the results is that governments can use redenomination as a tool to influence micro-economic activities. This study is perhaps the first to use firm-level data to examine the impact of currency redenomination on firms’ value growth in an African country.

scholarly journals The impact of covid-19 on global insurance market

2021 ◽  
Vol 342 ◽  
pp. 08012
Author(s):  
Ana Preda ◽  
Mirela Popescu ◽  
Imola Drigă
Keyword(s):  
Life Insurance ◽  
Mortality Rates ◽  
Insurance Markets ◽  
Insurance Sector ◽  
Insurance Contracts ◽  
Developed Markets ◽  
Life Insurers ◽  
Growth Prospects ◽  
The Impact

The purpose of the paper is to present the changes occurred on global insurance markets during the current pandemic situation. The effects are largely felt through asset risks, weaker premium growth prospects, and also insurers’ long-term investment. Developed markets, particularly life ones, are likely to shrink in real terms as a result of the economic slowdown. Higher mortality rates due to the coronavirus pandemic are affecting the bottom lines of many life insurers. The main trends in this sector in last years, is based on the most important aspects such as, written premiums, and benefits paid, types of the life insurance contracts and density and penetration degree of the life insurance sector.

Impact of IRDA Guidelines on Consumer Confidence in Life Insurance Market: Then and Now

2020 ◽  
Vol 9 (2) ◽  
pp. 117-134
Author(s):  
Shikha Khera ◽  
Divya
Keyword(s):  
Life Insurance ◽  
Positive Impact ◽  
Research Topic ◽  
Consumer Confidence ◽  
Insurance Companies ◽  
Primary Data ◽  
Insurance Sector ◽  
Comparative Survey ◽  
The Impact ◽  
Made In

This study has been undertaken in order to estimate the impact on IRDA guidelines on customer satisfaction in the life insurance sector from the time of its inception in 1999 to the IRDA Amendment (The Insurance Laws Act) of 2015. In order to accomplish the research aim and objectives appropriately, a thematic framework has been implemented that aspires to conduct quantitative analysis of the primary data collected in relation to the research topic through questionnaire-based survey. Further, comparative survey of customer confidence on IRDA guidelines pertaining to pre- and post-IRDA regulation 2017 has been made in the study. The study findings confirm that IRDA guidelines, that is, transparent and make clear specifications on aggressive online selling by insurance companies, provide outsourcing guideline for them, direct the customers on timely settlement of claims without delay, and are abided by the mandate of Government of India to link PAN and Aadhaar card of the consumers to their policies show significantly positive impact on consumer confidence. Simply put, there is significant increase in confidence post-2015 Amendment Act.

scholarly journals DOES THE INSURANCE SECTOR REALLY MATTER FOR ECONOMIC GROWTH? EVIDENCE FROM CENTRAL AND EASTERN EUROPEAN COUNTRIES

2021 ◽  
Vol 22 (3) ◽  
pp. 695-713
Author(s):  
Yilmaz Bayar ◽  
Marius Dan Gavriletea ◽  
Dan Constantin Danuletiu
Keyword(s):  
Economic Growth ◽  
Cross Section ◽  
Life Insurance ◽  
Structural Breaks ◽  
Causal Connection ◽  
Eastern European ◽  
Causality Test ◽  
Insurance Sector ◽  
Eastern European Countries ◽  
The Impact

This paper analyses the impact of insurance sector development on economic growth based on a sample that includes 14 Central and Eastern European (CEE) post-transition countries for a period of 19 years, from 1998 to 2016. Considering the presence of cross-section dependence and multiple structural breaks, recently developed panel econometric techniques were employed and led to the following conclusions: (1) life insurance has no significant effect on economic growth in both panel and individual countries, (2) non-life insurance positively affects economic growth in both panel and individual countries, (3) Dumitrescu and Hurlin causality test indicates a unidirectional causality running from economic growth to both life and non-life insurance and infers the absence of causal connection between life and non-life insurance and economic growth.

scholarly journals The IDD and Its Impact on the Life Insurance Industry

2020 ◽  
pp. 75-112
Author(s):  
Kyriaki Noussia
Keyword(s):  
Life Insurance ◽  
Insurance Industry ◽  
Specific Information ◽  
Sustainable Business ◽  
Management Options ◽  
Insurance Sector ◽  
Life Insurance Industry ◽  
The Cost ◽  
The Impact ◽  
International Character

AbstractThe life insurance sector not only pertains to a variety of distributors, such as for example, ‘bancassurance’ entities combining investments services, investment and insurance products, but also to the large portion of unit-linked/investment based life insurance products. Major legal changes introduced by Directive (EU) 2016/97 (“IDD”) will therefore need to be carefully considered and anticipated by the life insurance industry, including specific professional and organizational requirements, specific information standards for insurance-based investment products, which will include the provision of appropriate information and requirements for advice to be suitable, restrictions on remuneration, and special requirements relating to the advice to be provided to the customer by any distributor related to costs and charges or to the distribution of the product—including the cost of advice. The international character of the Life Insurance has an important impact on the work to the implementation of IDD which aims at a so-called minimum harmonization. No doubt that the implementation may appear wide and burdensome, but it is a unique opportunity for all entities involved to achieve a good balance of liabilities between the professionals involved, review risk management options and look for sustainable business alternatives. This chapter examines the impact of IDD on life insurance and addresses the harmonization impact and effect of the IDD in the insurance industry.

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