scholarly journals PEMODELAN DAN SIMULASI PROSES SURPLUS PADA BISNIS ASURANSI

2018 ◽  
Vol 6 (1) ◽  
pp. 38
Author(s):  
Hutomo Atman Maulana ◽  
Erma Domos
Keyword(s):  
Negative Impact ◽  
Stochastic Modelling ◽  
Insurance Companies ◽  
Time Of Arrival ◽  
Insurance Company ◽  
Result Show ◽  
Claims Problem ◽  
Insurance Business ◽  
Premium Income

Basic insurance business is public trust. Insurance companies must pay attention to the systems and procedures for the payment of claims problem which is not simple. One of the important thing is when determining premium, because if it is too high could lead the company out of competition with the competitor. In the other hand, it is too low could lead the company lack of cash to handle claim which bring a negative impact for the company. This research aimed to give illustration of surplus in insurance business in a year period through determination of premium income and stochastic modelling in number and amount of claims. This model could be used by insurance company to take decision when determining premium whether surplus or ruin. The research used Exponential  and Gamma distribution to model time of arrival and amount of claim respectively.  The result show that the minimum premium could be found to get minimum surplus and avoid ruin.

scholarly journals The impact of lending on bancassurance activity

2019 ◽  
Vol 13 (1) ◽  
pp. 171-181
Author(s):  
Elda Marzai Abliz
Keyword(s):  
Negative Impact ◽  
Distribution Channel ◽  
Solvency Ii ◽  
Capital Requirements ◽  
Financial Supervision ◽  
Insurance Companies ◽  
Insurance Company ◽  
Customer Base ◽  
Premium Income ◽  
The Impact

Abstract Due to financial crisis, and especially because of prudence in lending (retail, micro, and corporate), banks are looking for new sources of income, and bancasurance is clearly a potential source of revenue. Thus, in the financial market, the interests of two major components of it are met: banks maximize commission income, and insurers make access to the large customer base of banks. Bancassurance is a distribution channel of insurance products through bank branches, bringing important advantages for banks, insurance companies and customers. The main advantage for the bank is that earns fee amount from the insurance company, the insurance company increases customers data base and market share, the client satisfy his financial needs and requests in the same institution. Considering that in Romania, banks and insurers do not provide information on the number of insurances sold via the bancassurance distribution channel, as well as commissions obtained by banks for the insurance sale, to determine the development of bancassurance in Romania, we used the statistical data provided by the National Bank of Romania, on credit growth and data provided by The Financial Supervision Association, on the evolution of gross written premiums. Bancassurance is one of the most important insurance distribution channels, accounting for approximately 36% of the global insurance market, in 2016, Europe’s insurers generated total premium income of €1 189bn and had €10 112bn invested in the economy. Regarding to the risks of bancassurance business for banks and insurers, they mainly concern distinct capital requirements for the banking and insurance systems, which will be covered by the Basel III and Solvency II directives. This paper aims to analyze the influence of credit on the bancassurance activity in the last 5 years in Romania, the economic, political and legal factors that have a negative impact on the development of bancassurance, and also the calculating the correlation coefficient r (Pearson’s coefficient) and his result.

scholarly journals THE INFLUENCE OF THE CROWN CRISIS ON THE DEVELOPMENT OF INSURANCE BUSINESS IN THE WORLD

2021 ◽  
Author(s):  
Hanna Mamonova
Keyword(s):  
Negative Impact ◽  
Insurance Industry ◽  
Insurance Companies ◽  
Demand For Insurance ◽  
Online Sales ◽  
The World ◽  
Future Challenges ◽  
Declining Demand ◽  
Insurance Business ◽  
The Impact

The article analyzes the impact of the COVID-19 pandemic on the world insurance market and some European countries. Separated economic indicators of the impact of the COVID-19 pandemic on the insurance business of the world are singled out. It was determined that the impact of the COVID-19 pandemic inspired declining incomes of insurers and households, rising unemployment, declining demand for insurance services, a significant decline in productivity of insurance companies, uncertainty about the future development of the insurance industry and the effects of the pandemic. The experience of the world insurers' struggle against the consequences of the COVID-19 pandemic has been studied and generalized. The latest tools that have allowed insurers around the world to mitigate or mitigate the negative impact of the crown crisis, in particular, are: the development of new insurance products; increasing the level of requirements for insurance services in terms of its relevance, price flexibility, mobility and transparency; transition of insurers to online sales of insurance services and online payments for insurance cases; direct funding of specific means of combating COVID-19; use of the latest technologies and innovative methods in the insurance business; introduction of a new mode of staff work in the activities of insurance companies. The transition of insurers to online sales of insurance services and online payments has revealed many unresolved issues regarding the insurer's cybersecurity. Insurers are forced to improve existing technologies and methods of control, to intensify training and information activities. The Crown Crisis has significantly increased the importance of modern underwriting. Therefore, insurers around the world are using the capabilities of artificial intelligence, alternative data sources and better forecasting models. Greater understanding of pandemic processes, gaining experience is needed not only to accelerate the way out of the modern pandemic, but also to form a stable insurance system to the inevitable future challenges. The study of positive experience in the functioning and development of insurance markets around the world in crises and shocks is useful for application in national practice.

Employers' Liability Insurance

1931 ◽  
Vol 13 (1) ◽  
pp. 1-66 ◽  
Author(s):  
Hugh W. Brown
Keyword(s):  
Common Law ◽  
Liability Insurance ◽  
Insurance Companies ◽  
Insurance Company ◽  
Insurance Policy ◽  
Home Office ◽  
The Subject ◽  
Insurance Business ◽  
The Law ◽  
Workmen's Compensation

SynopsisUnder Common Law an employer has always been liable to his workmen for his own personal negligence, but it was not until 1897 that there was enacted the first of a series of Workmen's Compensation Acts which introduced a remarkable change in the law, inasmuch as the workman was given a statutory right to compensation for accident without requiring him to prove any negligence whatever.The evolution of the law relating to Workmen's Compensation is traced through the successive Acts of Parliament, and the provisions of the Workmen's Compensation Act 1925, which codifies the law on the subject, are summarised so far as they relate to the liability covered by an Insurance Policy. Under the Act the employer is liable for personal injury to his workmen by accident “arising out of and in the course of” the employment or by certain scheduled industrial diseases.An Insurance Policy covers the liability at Common Law and under the Employers' Liability Act 1880 as well as under the Workmen's Compensation Acts, and in addition makes the Insurance Company responsible for the cost of defending claims. The injured workman may have to consider whether he is likely to recover a larger sum by way of damages than he would receive in compensation by arbitration proceedings under the Workmen's Compensation Acts, and he can then elect which course to take.A description is given of the Returns of Compensations made by Insurance Companies to the Home Office on behalf of the employers in certain selected industries as required by the Workmen's Compensation Act 1925.The requirements of the Assurance Companies Act 1909 relating to Employers' Liability Insurance business are stated. In the Annual Returns to the Board of Trade under this Act, an Actuarial Valuation of the Outstanding Claims that have been in existence for five years or more is called for on an annuity basis, but no regulations are laid down for estimating the Liability in respect of Outstanding Claims of shorter duration. The present method is to take each of such claims and after considering the facts—nature of injury, rate of compensation, etc.—to make the best possible estimate of the ultimate cost to the Insurance Company. Later developments of the injury, however, may cause such estimate to be wide of the amount which the Company is called upon to pay. A plea is advanced for an investigation into the liability in respect of Outstanding Claims, in the hope that it may be found possible to arrive at average factors which could be used, with a suitable grouping of the Claims, to determine the Liability under the non-fatal Outstanding Claims from the first occasion of their becoming outstanding. When there is no recognised method based on past experience of making such an estimate, judgment may be influenced by factors not solely relevant to the ascertainment of the liability.All the leading Offices transacting Employers' Liability Insurance business are members of the Accident Offices Association. This Association was formed after the passing of the Workmen's Compensation Act 1906, by which the scope of workmen's compensation was widely extended. The Association controls the rates and policy conditions of the Tariff Offices, but as the regulations are in great measure confidential, detailed information can only be given regarding what is already common knowledge.A further step was taken in Government supervision of Insurance Companies by the Agreement made in 1923 between the Home Office and the Accident Offices Association, the effect of which is to limit to 37½% the expenses and profits in respect of the combined figures of the members of the Association.The trend of probable future legislation as recommended by the Departmental Committee in the Insurance Undertakings Bill is described, and the questions of Compulsory Insurance and State Insurance are touched upon.An account is given of an Undertaking made recently by the Accident Offices Association to furnish the Government with workmen's compensation statistics in connection with a Home Office Scheme of enquiry into the Incidence and Causation of Accidents.The subject is so extensive that it has only been possible to deal with it in broad outline, but in conclusion reference is made to various aspects that could with advantage be expanded.

scholarly journals The Influence of Liberalization on Innovation, Performance, and Competition Level of Insurance Industry in Indonesia

2020 ◽  
Vol 12 (24) ◽  
pp. 10620
Author(s):  
Tulus Suryanto ◽  
Darul Dimasqy ◽  
Reza Ronaldo ◽  
Mahjus Ekananda ◽  
Teuku Heru Dinata ◽  
...  
Keyword(s):  
Negative Impact ◽  
Insurance Industry ◽  
Negative Relationship ◽  
Innovation Performance ◽  
Insurance Companies ◽  
Threshold Regression ◽  
Aggregate Model ◽  
The Government ◽  
Premium Income ◽  
The Impact

This study aims to reveal the impact of liberalization on innovation, performance, and the level of competition for insurance industry players in Indonesia based on insurance data from 2006 to 2018. The research method used is quantitative with the support of panel data. The analysis technique to explain the findings uses an aggregate model and Threshold Regression analysis. Descriptive and econometric research types were chosen to make it easier to explain the findings. From the results of data analysis using three experimental models, it shows three findings. First, in the aggregate, there is a significant negative relationship between liberalization and innovation. In the Threshold Regression model, a negative impact occurs on companies with low premium income, whereas in high premium income companies, the result is positive. This is due to the availability of resources to large companies to optimize the adaptation of liberalization in terms of innovation. Second, higher liberalization can encourage insurance companies to perform more efficiently and increase net premium income. Third, the negative impact of liberalization on competition shows that the higher the deregulation, the lower the game. These findings indicate that in the aggregate, global insurance financial liberalization has had a significant impact on the development of the insurance industry sector in Indonesia. However, liberalization can be different for groups of small companies and groups of large companies. The expected implication is that the government needs to adopt a long-term policy strategy that can encourage the sustainability of insurance companies: both high-income companies and low-premium-income companies. Besides this, it is hoped that insurance companies pay more attention to innovation, significantly improving the quality of human resources as a competitive advantage in facing global competition.

A NEW MULTIVARIATE ZERO-INFLATED HURDLE MODEL WITH APPLICATIONS IN AUTOMOBILE INSURANCE

2022 ◽  
pp. 1-24
Author(s):  
Pengcheng Zhang ◽  
David Pitt ◽  
Xueyuan Wu
Keyword(s):  
Model Performance ◽  
Insurance Companies ◽  
Hurdle Model ◽  
Automobile Insurance ◽  
Insurance Company ◽  
Computational Statistics ◽  
Count Models ◽  
Insurance Portfolio ◽  
Insurance Business ◽  
One Year

Abstract The fact that a large proportion of insurance policyholders make no claims during a one-year period highlights the importance of zero-inflated count models when analyzing the frequency of insurance claims. There is a vast literature focused on the univariate case of zero-inflated count models, while work in the area of multivariate models is considerably less advanced. Given that insurance companies write multiple lines of insurance business, where the claim counts on these lines of business are often correlated, there is a strong incentive to analyze multivariate claim count models. Motivated by the idea of Liu and Tian (Computational Statistics and Data Analysis, 83, 200–222; 2015), we develop a multivariate zero-inflated hurdle model to describe multivariate count data with extra zeros. This generalization offers more flexibility in modeling the behavior of individual claim counts while also incorporating a correlation structure between claim counts for different lines of insurance business. We develop an application of the expectation–maximization (EM) algorithm to enable the statistical inference necessary to estimate the parameters associated with our model. Our model is then applied to an automobile insurance portfolio from a major insurance company in Spain. We demonstrate that the model performance for the multivariate zero-inflated hurdle model is superior when compared to several alternatives.

scholarly journals The Effect of Premium Revenue, Underwriting Results, Investment Results, and Risk Based Capital on Income in Insurance Company (Study On Corporate Insurance - The Listed on the Indonesia Stock Exchange)

2021 ◽  
Vol 2 (6) ◽  
pp. 387-399
Author(s):  
Wahyuddin ◽  
Mauliyana
Keyword(s):  
Regression Analysis ◽  
Linear Regression ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Insurance Companies ◽  
Insurance Company ◽  
Investment Returns ◽  
Premium Income ◽  
Corporate Insurance

This research is intended to determine how much influence the premium income, underwriting results, investment results, and risk based capital on the profit of insurance companies (a study of insurance companies listed on the Indonesia Stock Exchange). In this study, the technique to collect the form of financial documentation as the data were taken from 11 insurance companies as samples that listed on the Indonesia Stock Exchange in 2017-2019. The multiple linear regression analysis methods use to analyze the data. The results of this study indicate that premium income, underwriting results, investment returns, and Rased Based Capital have a positive and significant effect on profits in insurance companies registered in Indonesia in 2017-2019. It is hoped that insurance companies registered in Indonesia will be able to maintain the value of premium income, underwriting results, and Rased Based Capital in the company, this is so that insurance companies are able to provide more performance for the progress of the company in the future.

scholarly journals Utilization Copula in Determination of Shallot Insurance Premium Based on Regional Harvest Results

2020 ◽  
Vol 20 (2) ◽  
pp. 160-166
Author(s):  
Hasna Afifah Rusyda ◽  
Achmad Zabar Soleh ◽  
Lienda Noviyanti ◽  
Anna Chadidjah ◽  
Fajar Indrayatna
Keyword(s):  
Risk Estimation ◽  
Insurance Premium ◽  
Insurance Companies ◽  
Market Prices ◽  
Horticultural Crops ◽  
Result Show ◽  
Weather Changes ◽  
Dependence Modelling ◽  
Agricultural Yields

Abstract: Shallot is one of the highest-yielding horticultural crops in Indonesia and has the tendency to increase the profits of farmers in Indonesia. But until now in Indonesia there is no insurance for horticultural crops other than corn, whereas the shallot farmers face various sources of risk such as weather changes, pest attacks, or other technical factors that ultimately lead to uncertainty of agricultural yields (revenue risk). To overcome this loss, insurance companies can make products based on shallot yields and shallot market prices. Therefore it is essential to grasp the distribution of risk variables (shallot yields and shallot market prices) that interact simultaneously, not separate from one another. Omitting dependencies among risk variables can cause biased risk estimation. Copula can model the non-linear dependencies and can identify the structure of the dependencies between variables. The suitable copula for modeling yield and price risk of shallot is simulated to compute the premium. Result show that clayton copula is suitable for dependence modelling between risk variables.

scholarly journals Asset Growth on Sharia Insurance

2020 ◽  
Vol 2 (1) ◽  
pp. 172-178
Author(s):  
Warsani Purnama Sari
Keyword(s):  
Financial Services ◽  
Insurance Companies ◽  
Insurance Company ◽  
Asset Growth ◽  
Premium Income

Examining the Premium Income Rate on Asset Growth in a Sharia Insurance Company registered with the Indonesian Financial Services Authority. The type of research used in this study is Comparative Causal, while the sample used in this study are 20 sharia insurance companies with the criteria of sharia insurance companies that are actively operating for the last three years. The results of this study indicate that the level of premium income positively and significantly affect the growth of asset Asuransi Syariah. This study is concerned with the level of premium income that affects the growth of Sharia Insurance assets in Indonesia.

scholarly journals STOCHASTIC MODELLING OF CASH FLOW FOR PERSONAL INSURANCE FUND USING THE CLOUD DATA STORAGE

2018 ◽  
pp. 153-162
Author(s):  
Kseniia Bazilevych ◽  
Mary Mazorchuk ◽  
Yurii Parfeniuk ◽  
Viktoriia Dobriak ◽  
Ievgen Meniailov ◽  
...  
Keyword(s):  
Data Storage ◽  
Cash Flow ◽  
Stochastic Modelling ◽  
Cash Flows ◽  
Insurance Companies ◽  
Estimation Accuracy ◽  
Insurance Fund ◽  
Insurance Company ◽  
Cloud Data ◽  
Cloud Data Storage

In this paper the model and applied information system are proposed for modelling cash flow of insurance funds with use cloud data storage. Cash flow valuation is performed taking into account contextual characteristics of an insured under conditions of stochastic uncertainty. The proposed insurance cash flow model of the financial fund of insurance company allow to account the financial solvency probability based on the analysis of contextual properties of insureds, that increase the estimation accuracy of the modeling cash flows. Also, the model takes into account insurance bonus non-payment during the insurance company operation. In this paper, we propose a structure of an informational system, which is called “Insurance Life”. This system supports downloading and uploading data with the cloud service pCloud according to safety requirements of data. The main results of the research are introduced into practice of the operation of insurance companies in forms of software applications and results of calculations.

FINANCIAL STABILITY MANAGEMENT OF THE INSURANCE COMPANY

2021 ◽  
Vol 3 (4) ◽  
pp. 128-135
Author(s):  
E. A. RUSETSKAYA ◽  
◽  
L. V. AGARKOVA ◽  
V. V. AGARKOV ◽  
◽  
...  
Keyword(s):  
Financial Stability ◽  
The State ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Individual State ◽  
State Control ◽  
Management Decisions ◽  
State Institutions ◽  
Insurance Business

When substantiating the relevance of management decisions to ensure the financial stability of insurance companies, both for the insurers themselves and for individual state institutions, it is necessary to point out the tightening of the practice of state control and regulation of the insurance business in order to comply with the requirements of insurance legislation, protect the interests and rights of policyholders, insurers, the state and other subjects of the insurance market. The article is devoted to the study of the issues of financial stability of the insurance company and the substantiation of the mechanism for managing this category, which includes a sequence of interrelated stages. The priority directions for improving the mechanism for managing the financial stability of an insurance company are presented.

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