scholarly journals Thai Non-Life Insurance Companies’ Finances and the Historic 2011 Floods

2021 ◽  
Vol 8 (1) ◽  
pp. 6-10
Author(s):  
Kanitsorn Terdpaopong ◽  
Robert Rickards
Keyword(s):  
Life Insurance ◽  
Performance Metrics ◽  
Financial Information ◽  
Insurance Companies ◽  
Inferential Statistics ◽  
Starting Point ◽  
Insurance Firms ◽  
The Government

The devastating floods in Thailand caused the country's fifth-costliest disaster in the last 31 years Many companies suffered in every facet. As a result, Thai non-life insurance firms lost $4.1 billion. Focusing on improvements in their main performance metrics, this article studies the financial implications of floods for those businesses. The financial information of the Thai non-life insurance is taken from three different periods; 2008 – 2010 (prior to the foods), 2011 (the floods year), and 2012 – 2014 (post floods). Descriptive and inferential statistics reflect variances in non-life insurance companies where the flooding had a devastating effect on them. This study serves as a starting point for Thai insurance firms, the government, and potential researchers.

The Effect of Investments and Risk Based Capital (RBC) of Tabarru Funds on Company (Case Study of Sharia Insurance in Indonesia for 2014-2019)

2020 ◽  
Vol 8 (1) ◽  
pp. 87-97
Author(s):  
Nana Diana ◽  
Tati Apriani
Keyword(s):  
Life Insurance ◽  
Statistical Tests ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Insurance Companies ◽  
Coefficient Of Determination ◽  
Verification Method ◽  
Investment Returns ◽  
The Government

This study aims to examine the influence of investment returns and Risk Based Capital (RBC) Tabarru Funds to the profit of sharia life insurance in Indonesia from 2014-2019. This study The type of this research is quantitative research with descriptive verification as a method. This research method uses descriptive verification method with quantitative approach. The data used in this study were sourced from the financial statements of Islamic life insurance companies in Indonesia for the 2014-2019 period. Then the data obtained were analyzed using multiple linear regression analysis and hypothesis testing consisting of t test and f test with the help of SPSS 21 software. The sampling technique uses non probability sampling with purposive sampling technique. Based on the results of the study it can be seen that the development of investment returns on Sharia Life Insurance in Indonesia has fluctuated and even suffered losses. While the development of Risk Based Capital (RBC) has increased and decreased but overall above 120% as determined by the government. Likewise, the profits earned in each year fluctuate. The results of statistical tests show that investment results partially have a positive effect on profit and Risk Based Capital (RBC) of Tabarru funds partially has a negative effect on profit. Simultaneously investment return and Risk Based Capital (RBC) affect on profit. In addition, the results of the coefficient of determination (R2) were obtained which obtained a value of 81%. This shows that the variable investment returns and Risk Based Capital (RBC) can affect earnings by 81% and the remaining 19% is influenced by other variables not used in this study.

V The Verification of Technical Reserves in Non-Life Insurance

1971 ◽  
Vol 20 (01) ◽  
pp. 51-53
Author(s):  
C. M. Stewart
Keyword(s):  
Life Insurance ◽  
Risk Groups ◽  
Insurance Companies ◽  
Life Assurance ◽  
Careful Scrutiny ◽  
Sufficient Detail ◽  
Satisfactory Method ◽  
Claim Frequency ◽  
The Government ◽  
Do So

The reader of this note will know well the method used in the U.K. for the verification of technical reserves (i.e. the net liability) in life assurance. The net liability must be calculated by a qualified actuary and the methods and bases used must be described in sufficient detail in Schedule 4 of The Insurance Companies (Accounts and Forms) Regulations 1968 for their suitability to be apparent from a careful scrutiny of these and the other financial statistics submitted in accordance with the Regulations. As the data are made public, this scrutiny can be made not only by the Government Actuary in advising the supervisory authorities at the Department of Trade and Industry, but also by any other qualified actuary who cares to do so, which is an equally important discipline. Under this system, the maximum freedom can be allowed to the company and its actuary, but there has hitherto been no equally satisfactory method available for the objective scrutiny of non-life technical reserves. However, the new Claim Frequency Analyses and Claim Settlement Analyses prescribed in Parts II and III of Schedule 3 to the 1968 Regulations should go a long way towards remedying this deficiency. These analyses are to be supplied separately for each class of insurance in each of a company's main markets, and separately for such risk groups within each class as the company decides to be appropriate.

scholarly journals Determinants of Financial Performance of Insurance Companies: Empirical Evidence Using Kenyan Data

2021 ◽  
Vol 14 (12) ◽  
pp. 566
Author(s):  
Kamanda Morara ◽  
Athenia Bongani Sibindi
Keyword(s):  
Financial Performance ◽  
Fixed Effects ◽  
Insurance Industry ◽  
Insurance Companies ◽  
Random Effects Models ◽  
Insurance Sector ◽  
Life Insurers ◽  
Insurance Firms ◽  
Financial Performance Measures ◽  
The Government

The drivers of financial success of the insurance industry are of interest to several players in any economy including the government; policymakers; policyholders; and investors. In Kenya; there have been relatively few studies on this topic; most of which look at narrow elements that determine insurance companies’ performance. This article sought to explore the components contributing to the financial performance of insurance firms. We employed a sample consisting of 37 general insurers and 16 life insurers for the period running from 2009 to 2018 and utilised panel data methods in order to establish the determinants of financial performance of Kenyan insurers. The pooled OLS; fixed effects and random effects models were estimated with the financial performance measures (proxied by either ROA or ROE) as the dependent variables. The results of the study documented that insurer financial performance and size were positively related. The study also found that insurer financial performance was negatively related to the age variable. The study also unraveled that higher leveraged insurance companies performed better than their lowly geared peers. This article provides broad analyses of the various drivers of financial performance of the insurance industry in Kenya. The findings of this study contribute to the academic literature on the financial performance of the insurance sector in Kenya and Africa as a whole. Furthermore; it gives pointers to the management of insurance companies on the aspects of their business that would need greater attention to drive and sustain superior financial performance.

Life Insurance Potential in India: An Economic Approach

2002 ◽  
Vol 6 (2) ◽  
pp. 11-18
Author(s):  
Ashok Thampy ◽  
S. Sitharamu
Keyword(s):  
Life Insurance ◽  
Business Strategy ◽  
Insurance Coverage ◽  
Insurance Companies ◽  
Public Confidence ◽  
Insurance Sector ◽  
The People ◽  
Building Activities ◽  
The Government ◽  
The Individual

The market for life insurance in India has evolved in the context of the specific socio-economic and political environment that existed over the years. Prior to nationalisation, although the insurance business had grown considerably, it remained an essentially urban phenomena. This limited spread of life insurance was also marked by many malpractices, deficiencies and frequent liquidation of insurance companies, shaking public confidence in purchasing insurance. The objectives of nationalisation were to spread insurance coverage, to provide a stable environment thus increasing the confidence of the people in insurance, and to harness the resources generated for nation building activities as determined by the government. The purpose of this paper is to estimate the size of the individual life insurance market that exists in India. In this study, we have not provided an estimate of the potential for group life insurance. It is hoped that these estimates will help to plan the business strategy and set goals in the life insurance sector.

Performance analysis of Takaful and conventional insurance companies in Saudi Arabia

2018 ◽  
Vol 25 (2) ◽  
pp. 677-695 ◽  
Author(s):  
Muhammad Hanif Akhtar
Keyword(s):  
Saudi Arabia ◽  
Economies Of Scale ◽  
Productivity Index ◽  
Insurance Companies ◽  
Programming Technique ◽  
Content Type ◽  
Insurance Sector ◽  
Starting Point ◽  
Insurance Firms ◽  
Efficiency And Productivity

Purpose The purpose of this paper is to analyze the performance of Takaful and conventional insurance companies in Saudi Arabia during a period of 2010-2015 by using the data envelopment analysis (DEA) technique for the whole population of insurance companies. Design/methodology/approach Given its objectives, the present study adopts the most prevalent DEA approach, by using the DEA Solver-Pro (Version 13). The DEA has emerged as a valuable analytical research technique. It measures the relative efficiency of firms in the presence of multiple inputs and outputs, based on a linear programming technique, and attempts to find out the firms that determine an envelopment frontier, are super efficient and with a higher productivity index. Findings It stems from the analysis that on a yearly basis, the average efficiency scores of firms have soared up overtime since 2010 till 2014 reflecting that most of the companies did well on the efficiency front. It is notable to mention here that the top slots for super efficiency are taken over by smaller firms, while the bigger firms are laggards here rather than the leaders. This reflects that the larger insurance firms need to augment their efficiency levels through more efficient utilization of inputs. The results of the study reveal that both Takaful and the larger conventional insurance firms in the country need to strengthen their operations more efficiently in order to take advantage of the economies of scale and scope. Market share and profitability are important determinants of efficiency. Research limitations/implications The larger insurance firms in the country need to a possible solution to the issue of inefficient market dynamics might lie in consolidation of the market through mergers and acquisitions. However, this needs a direct involvement of regulators in the Kingdom so that the market becomes healthy. Even though the Saudi insurance sector appears to have benefited from the compulsory insurance regulations for the expatriates and their families, however, there is still a need for efficiency and productivity improvement in the industry. The Takaful firms need to adopt such measures that would help them to take advantage of their specialized products toward efficiency vis-à-vis productivity drives. Finally, the insurance firms in Saudi Arabia need to adopt the use of threshold practices in order to compare their relative performance to improve on their efficiency and productivity levels by catching-up with the frontiers of best practices. Originality/value Based on the available literature, an exclusive study on the insurance sector of Saudi Arabia is so far non-existent. The study stands as pioneer to provide a starting point on overall performance evaluation of insurance firms in Saudi Arabia in various contexts in addition to the current and future trends of the insurance sector in the Kingdom.

Using Servqual Model For Comparative Service Quality Analysis Of The Indian Non-Life Insurance Sector

Paradigm ◽  
2010 ◽  
Vol 14 (2) ◽  
pp. 56-63 ◽  
Author(s):  
Dr. Rohit Kumar ◽  
Dr. Manjit Singh
Keyword(s):  
Service Quality ◽  
Private Sector ◽  
Life Insurance ◽  
Insurance Industry ◽  
Quality Analysis ◽  
Insurance Companies ◽  
Quality Level ◽  
Insurance Sector ◽  
The Government

Delivering of quality services to the customers has become an indispensable factor for success and survival in today’s competitive insurance environment. The post-liberalized insurance industry in India has been witnessing a discernible shift from the seller to the buyers’ market. The present study is an endeavor to assess the comparative service quality level of the Government owned and Private Sector Non-life Insurance Companies in the post liberalized environment using SERVQUAL approach. For analyzing the customers’ perception and expectation towards service quality of non-life insurance companies, a modified SERVQUAL type questionnaire relevant to the insurance industry was constructed. An attempt has been made to examine the significant gap between the service quality of government owned and private sector non-life insurance companies by using t-test on the gaps (P-E) on all the items of seven dimensions.

Incentives Facing Life Insurance Firms to Report Actuarial Earnings: Evidence from Australia and the UK

2002 ◽  
Vol 17 (3) ◽  
pp. 237-256 ◽  
Author(s):  
Paul J. M. Klumpes
Keyword(s):  
Financial Reporting ◽  
Life Insurance ◽  
Insurance Companies ◽  
Reporting Practices ◽  
Financial Reporting Standards ◽  
Life Insurers ◽  
Insurance Firms ◽  
Definition Of ◽  
The Uk ◽  
Industry Professionals

During the 1990s, Australian and UK life industry professionals encouraged life insurance companies to provide investors with supplementary financial statements that incorporate the present value of actuarially calculated (“embedded value”) earnings (“PVAE”). However, these reporting practices have subsequently been criticized for potentially misleading investors and for failing to meet the definition of a recognizable asset. The propensity of proprietary UK and Australian life insurers to voluntarily report their PVAE is predicted to be driven by their desire to provide information to investors about their future profit expectations. The empirical tests are based on a sample of 67 Australian and UK proprietary and mutual firms. Consistent with the hypothesis, proprietary firms voluntarily reporting PVAE tend to have relatively higher future profit expectations than nondisclosing firms. These findings have implications for ongoing efforts to develop internationally harmonized financial reporting standards for life insurance companies.

Do the Over-the-Counter Sales at Banks Expand the Individual Annuity Market in Japan?

2015 ◽  
Vol 9 (1) ◽  
Author(s):  
Hideto Azegami
Keyword(s):  
Life Insurance ◽  
Panel Data Analysis ◽  
Distribution Channel ◽  
Participation Rate ◽  
The Elderly ◽  
Insurance Companies ◽  
Over The Counter ◽  
Bank Branches ◽  
Insurance Policies ◽  
Insurance Firms

AbstractThis research investigates the effects of the over-the-counter (OTC) sales at banks on individual annuity markets in Japan. The ban on OTC sales of individual annuities at financial institutions was rescinded in October 2002. Deregulation is considered to have expanded the market because it began growing in FY 2001. Life insurance companies also announced that the sales of insurance policies through banks are affecting their profits. However, statistics on sales results aggregated by distribution channel have not yet been released. Thus, my empirical analysis investigates the relationships between the amount of new contracts for individual annuities provided by insurance firms and several explanatory variables, including the number of bank branches in a region, the Herfindahl index calculated using the amount of individual annuity contracts in force, rate of the elderly, prefectural income, labor force participation rate for older men, amounts outstanding of bank deposits, share of owned homes to total dwellings, amount of life insurance policies in force, and male life expectancy. The results of a panel-data analysis over a 10-year period, and including 47 prefectures and 14 major insurance firms, indicate that the number of bank branches is positively related to the amount of new contracts for several insurance companies.

scholarly journals CEO Compensation in Korea: Is It Different Than in the US? A Comparison between Korean Non-Life Insurance Firms and US Property-Liability Insurance Firms

2021 ◽  
Vol 9 (4) ◽  
pp. 61
Author(s):  
Sangyong Han ◽  
Hyejeong Mun
Keyword(s):  
Life Insurance ◽  
Ceo Compensation ◽  
Pay For Performance ◽  
Level Structure ◽  
Shareholder Value ◽  
Insurance Companies ◽  
Executive Pay ◽  
Life Insurers ◽  
Insurance Firms ◽  
Performance Based Pay

This study investigates the level, structure, and pay-for-performance relationship of CEO compensation in Korean non-life insurance companies. We find that seniority plays an important role in setting CEO compensation practices and that performance-based pay, such as bonus, is more effective than base salary in enhancing shareholder value for Korean non-life insurers. Unlike previous studies that show that international differences in executive pay have been diminished considerably since the 2000s, our evidence shows that there is a remarkable difference in CEO compensation between Korean non-life insurers and U.S. property-liability insurers. Furthermore, we provide evidence that the pay-performance relationship is weaker in Korean non-life insurance companies relative to US counterparts, suggesting that it is necessary for Korean non-life insurers to tie performance-based compensation more closely to shareholder value in the design of CEO compensation.

scholarly journals The Determinants of Insurance Firm’s Profitability in Tanzania: An Empirical Investigation

2020 ◽  
Vol 2 (2) ◽  
pp. p30
Author(s):  
Irene J. Horera ◽  
Mnaku H. Maganya
Keyword(s):  
Financial Services ◽  
Random Effect ◽  
Random Effect Model ◽  
Preliminary Test ◽  
Insurance Companies ◽  
Insurance Company ◽  
Effect Model ◽  
Insurance Firms ◽  
The Government ◽  
A Company

This paper sought to analyze some of the supposed determinants of profitability for insurance firms in Tanzania. Though the success of insurance companies has been linked to the accessibility of financial services by various scholars, yet the way profitability of companies influence success of firms has not been well explored. To undertake the study 10 insurance companies were involved out of 25 general insurance companies operating in Tanzania for 10 years from 2008 to 2017. The data was obtained from financial statements given on TIRA Report and some of them from documentary review. The paper carried out preliminary test of panel unit root to check for stationarity of variables. The appropriate fixed and random effect model test was employed to determine the fitness of the model using the Hausman specification test. Age of the firm found to be statistically influence profit of a company at 5% level while claims cost found to be statically significant at 1% level. Size of a company was found to have no significant contribution to the firms’ profitability. It is therefore recommended that the government and the regulator should smoothen rules, regulations and procedures so that penetration of insurance business to be high and also insurance company should have proper management of claims so that they can reduce expenses and increase profit of a company.

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