scholarly journals Trends and risks of modern insurance

2019 ◽  
Author(s):  
Nadiia SOLOVEI ◽  
Yana SUKHOPER
Keyword(s):  
Risk Factors ◽  
Insurance Industry ◽  
Insurance Market ◽  
Insurance Companies ◽  
Modern World ◽  
Present Stage ◽  
Business Partners ◽  
Management Measures ◽  
Systematic Risks ◽  
Insurance Business

The article is devoted to the analysis of trends in the development of the insurance market and the risks that accompany it. The factors of influence are investigated, the classification of risks of insurers on development of appropriate management measures is given. The specific nature of the risks associated with the digitalization of information in the insurance industry and the various options for protection against them are considered. Any activity of enterprises in the domestic market can be characterized by an increased degree of state or systematic risks, the influence of which in the modern world is compounded by the new risks for business of translating information into digital form. The functional purpose of an insurance business is to protect other entities from the possible risks, but the insurance business itself is also exposed to certain risk factors that may impede the performance of insurance activities. The functioning of the insurance market at the present stage is accompanied by new risks that may affect the effectiveness of insurers. It is this that raises the relevance and importance of this issue on the systematization of insurance business risks and the recommendations for managing them. The purpose of this article is to review the trend of development of the modern insurance market, to systematize risk factors and to develop recommendations for risk management of the insurance market at the present stage. The main reasons for which risk situations arise in the operation of insurance companies are external factors, namely the actions of competitors, insurers, business partners. Exacerbation of competition increases the dependence of performance indicators of the insurer on the level of competitiveness of the institution or its services.

scholarly journals The Main Features of the Modern World Market of Insurance Services

2021 ◽  
Vol 4 (519) ◽  
pp. 36-41
Author(s):  
K. V. Drymalovska ◽  
◽  
R. O. Kyryliuk ◽  
Keyword(s):  
Western Europe ◽  
Insurance Industry ◽  
World Market ◽  
Insurance Market ◽  
Insurance Companies ◽  
Modern World ◽  
The World ◽  
Effective Policy ◽  
Main Components ◽  
The Impact

As competition in international and national markets intensifies, it is important to create a system to protect economic actors from potential threats and adverse factors. To solve these issues, it is necessary to ensure the effective functioning of the insurance market, which is one of the important components of financial security. Without the developed insurance market, it will be impossible to ensure the social and economic progress of the country, its corporate security, welfare etc. The current state of the world insurance market has certain features, which makes it possible to adapt to the change of the modern world and improve the work of the insurance industry. To create a clear insurance market, it is necessary to develop an effective policy as to the insurance activities of both the insurer and the reinsurers, as well as to establish solvency insurance systems. The development of the insurance market is accompanied by many economic, regulatory, organizational, methodological and personnel issues. The publication is aimed at studying and distinguishing the peculiarities of development of the world market of insurance services. On the basis of studying the works of scholars, the main features of the modern insurance market are provided; key signs of the insurance industry are presented; statistical information on trends in the insurance market development during 2019 in the following regions: North and Latin America, Western Europe, Asia, European developing countries. The impact of COVID-19 on the state of the insurance industry in Europe has been characterized. As result of studying the key trends in the future development of the insurance market, the main components that are necessary for the formation of an effective policy of insurance companies in the context of COVID-19 have been formed as follows: digitalization, innovation, analytics, feedback.

CURRENT TRENDS OF INSURANCE MARKET IN UKRAINE

2017 ◽  
Author(s):  
Olena Steshenko ◽  
◽  
Oleksandra Boiko ◽  
Keyword(s):  
Financial Stability ◽  
Insurance Industry ◽  
Local Economy ◽  
Insurance Market ◽  
Insurance Companies ◽  
Structural Basis ◽  
Insurance Company ◽  
Demand For Insurance ◽  
State Supervision ◽  
Insurance Business

The stage of political and economic instability in Ukraine significantly influence on development of both individual insurance companies and the insurance market as a whole. The decrease of the solvency level of the population and trust to insurers have led to a significant reduction in demand for insurance services in recent years. That is why today insurers has faced a difficult task to increase the range, volume and quality of insurance services, increase the level of capitalization and financial reliability of insurance companies, gaining trust of legal entities and individuals. Following these measures aimed at overcoming crisis trends, the local economy will be able to attract essential investment resources, strengthen the effectiveness of state supervision of insurance activities, create a structural basis for the development of various types of insurance. One of the important factors in activating the development of the insurance business can be an effectively built underwriting process of an individual insurance company. The application of such an approach will enable the profitability and financial stability of insurance companies due to a thorough analysis and selection of risks for acceptance into insurance. The article analyzes the current state of the insurance market in Ukraine and highlights its main prospects for development. The methodology of the study is to summarize and compare the data characterizing the various components of the insurance market. The authors identify the trends in the insurance market in Ukraine, assess the situation according to various criteria, identify factors in the development of the insurance business, as well as problematic aspects of the insurance industry. The study has showed that there is a high dependence of insurance in Ukraine on the current political and economic system, which led to the dominance of demand for certain insurance products. The development of the modern insurance market is associated with the need for state support, is to create conditions for adequate functioning of the insurance market.

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. 

Effective Customer Support System of Life Insurance Companies

2014 ◽  
Vol 4 (2) ◽  
Author(s):  
Rajesh Srivastava ◽  
Dr. Preeti Sharma
Keyword(s):  
Life Insurance ◽  
Economies Of Scale ◽  
New Technologies ◽  
Insurance Industry ◽  
Integrated Approach ◽  
Customer Experience ◽  
Disruptive Innovation ◽  
Insurance Companies ◽  
Insurance Business ◽  
Strategic Imperative

Increased competition, new technologies and the shift in power from the provider to the customer have produced unrelenting pressure on life insurance business. The market forces point to one overwhelming strategic imperative: customer-focused strategy. Customers are willing to build long-term relationships based on trust and mutual respect with firms that provide a differentiated and personalized service offering. Over the past few years, life insurance industry responded to intensified competition and high customer attrition by entering each other’s markets to capture greater “wallet share” and ostensibly lower their economies of scale. The service delivery process is influenced by quality of personnel, information technology, internal processes, human resource practices, and even an institution’s own change orientation. Now a day’s customers are demanding seamless, multi-channel sales and service experiences. Simultaneously, other players are looking for opportunities to invade this space or to redefine it through disruptive innovation. The result is forcing life insurance companies to examine a more balanced, integrated approach to the customer experience and growth. This research, we analyze the need, preference and satisfaction of customers in life insurance business and provide perspective on how to improve the customer experience.

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 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.

scholarly journals Impact De-Tarrification in Modeling Motor Insurance Premium in Malaysia

2019 ◽  
Vol 8 (3) ◽  
pp. 7394-7400
Keyword(s):  
Risk Factors ◽  
Insurance Industry ◽  
Risk Profile ◽  
Insurance Premium ◽  
Insurance Companies ◽  
Good Service ◽  
Motor Insurance ◽  
Premium Calculation ◽  
Rating Factor ◽  
The Impact

De-tariffication has become a hot topic for Malaysian motor insurers after effectively implemented on 1 July 2017. Generally, the insurance companies need to set a rating factor for their premium before calculating the price on selected premium. Typically, these rating factors are based on the risk profile of the policyholder. That means, the price of the premium determined by the risk factors from the profile of the policyholder. The aim of this research to investigate the impact after de-tariff implemented among the motor insurance industry. This research also investigates the effect of de-tariff on the Good Service Tax (GST) in the premium calculation. Multiple Linear Regression (MLR) was used to determine the most significant rating factor that influence the calculation of the premium received by the motor insurance industry. Once these k rating factors and parameters are identified, the value of premiums can be calculated by taking into account these rating factors and parameters in the de-tariff formula and comparing with the existing model. The result of the study indicates that de-tariff model has lower premium compared to Malaysia tariff model. Furthermore, GST is also found to have a significant impact on the motor insurance premium, where policyholders are required to pay higher premiums than non-GST premiums. The results will help the insurance companies to find new formulas in considering new rating factors and improve the accuracy of premium calculations.

scholarly journals Innovatizing the Insurance Business in the Development of Digital Economy

2021 ◽  
Vol 7 (522) ◽  
pp. 62-69
Author(s):  
O. O. Sosnovska ◽  
Keyword(s):  
Business Processes ◽  
Swot Analysis ◽  
Insurance Industry ◽  
Global Scale ◽  
Digital Economy ◽  
Insurance Companies ◽  
Insurance Sector ◽  
Insurance Business ◽  
Health Insurance Industry ◽  
The Individual

The article defines the current trends of innovatizing the insurance business in the digital economy. The stages of development of modern insurance technologies (InsurTech), which are innovative products in the insurance sector of financial infrastructure, are provided. The instruments of digitalization of business processes for sale of insurance products, settlement of insurance claims, bookkeeping and tax accounting, risk underwriting, document flow are presented. The dynamics of global investments in technological innovations of insurance companies on a global scale have been specified. The volume of global investments and concluded agreements in InsurTech sector by insurance sectors is analyzed and it is proved that 2020 is a period of awareness of the importance and role of digital technologies implementation in the insurance industry, recognition of the value of the digitalization vector of insurance business and global investments in InsurTech development with the highest recorded values. It is identified that the leader in attracting investments in the processes of innovatizing is the property insurance industry (P&C), which has compiled 53% of the total financing and 63% of the concluded agreements. The individual health insurance industry (L&H) ranks second in terms of indicators, maintaining overall investment attractiveness, high amounts of financing and the introduction of insurance technologies. The economic, technological, organizational management, and legal factors that stimulate or inhibit the innovative activity of insurance companies in Ukraine are systematized. Based on the generalization of problems and weaknesses that are relevant and impede the desired pace of innovatizing the insurance business in the digital economy, a SWOT analysis matrix of the feasibility of InsurTech implementation is proposed. It is determined that the introduction of innovations and the development of insurance on the basis of digitalization are currently a catalyst for the strategic development of the insurance business, improving the quality of insurance products and successful activities in an increasingly customer-oriented financial sector.

Features of the development of the russian insurance market at the present stage

2016 ◽  
Vol 5 (2) ◽  
pp. 75-80
Author(s):  
Мироненко ◽  
A. Mironenko
Keyword(s):  
Management System ◽  
Business Processes ◽  
Insurance Market ◽  
Insurance Companies ◽  
Present Stage

The article describes the features of the development of market of insurance compa-nies; specifics of positioning in modern conditions arehighlighted. The author marked the most ac-tive administrative business processes in management system of insurance companies: manufacturing, marketing and informational.

Market structure, efficiency and profitability of insurance companies in Ghana

2015 ◽  
Vol 10 (4) ◽  
pp. 648-669 ◽  
Author(s):  
Abdul Latif Alhassan ◽  
George Kojo Addisson ◽  
Michael E. Asamoah
Keyword(s):  
Market Structure ◽  
Life Insurance ◽  
Insurance Industry ◽  
Consumer Welfare ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Markets ◽  
Ample Evidence ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of the regulatory-driven market structure on firm pricing behaviour by testing the structure-conduct-performance (S-C-P) hypothesis for both life and non-life insurance markets in Ghana. Design/methodology/approach – Using a panel data on 14 life and 22 non-life insurers from 2007 to 2011, the authors employed the Herfindahl Hirschman Index and concentration ratio as proxies for the S-C-P hypothesis while efficiency scores were estimated using the data envelopment analysis technique to proxy for the efficient structure (ES) hypothesis. The dependent variable, profitability was measured as return on assets while controlling for size, underwriting risk, leverage, GDP growth rate and inflation. The models were estimated using the panel corrected standard errors of Beck and Katz (1995) and random effects estimations. Findings – The results from the empirical estimation provide ample evidence in support for ES hypothesis for both life and non-life insurance markets. While conflicting results was found for SCP hypothesis in the non-life insurance market, it was rejected in the life insurance market. The findings also point to an increasing level of competition in both life and non-life insurance industry in Ghana though they still remain concentrated with the life insurance sector having high levels of efficiency compared to the non-life sector. Practical implications – The findings of the study will enhance the understanding of firm behaviour in the new markets created to shape regulatory and competition policies of the regulator to promote consumer welfare while ensuring a stable industry to enhance its role in economic development. Originality/value – This is the first study to test the market power and efficient hypotheses on the insurance industry in Ghana. To the best of the author’s knowledge, this study is the first to examine the determinants of profitability in the non-life insurance market.

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