scholarly journals Life insurance: features, present state and problems

2021 ◽  
Vol 11/2 (-) ◽  
pp. 29-33
Author(s):  
Oksana PONOMAROVA ◽  
Viktoriia SYNYPOSTOL ◽  
Alina SHTANKO
Keyword(s):  
Life Insurance ◽  
Social Protection ◽  
Insurance Market ◽  
Insurance Companies ◽  
Social Stability ◽  
Insurance Risk ◽  
Insurance Premiums ◽  
Financial Condition ◽  
Inhibiting Factors ◽  
General Insurance

The essence of life insurance, its features and advantages in comparison with other kinds of insurance is considered. Influence of changes of insurance payments on change of level of payments is analyzed and the interrelation between insurance premiums and insurance payments is found out. The forecast for 2021–2023 on insurance premiums and payments accordingly is constructed. In connection with this, the study of the life insurance market in Ukraine and the identification of the main problems of its development is currently quite relevant. Life insurance plays an important role in ensuring security and social stability in the country. Considering the economic essence of life insurance, it should be noted its feature, which is a combination of properties of insurance protection and savings. In this regard, in the general insurance market of the country, its structural segment has specific features in defining the basic concepts of insurance risk and insured event. Yes, insurance risk is based on the unpredictability of the event. The brake on the development of the life insurance market in Ukraine is that the capitalization and financial condition of the vast majority of insurance companies is unsatisfactory and does not ensure their competitiveness even in the domestic market. The limited amount and imperfect structure of financial savings of most insurers prevent them from becoming an effective institution of social protection and investment in the Ukrainian economy. Among the inhibiting factors should also be noted the limited investment activities of insurers. It is defined the basic problems that hinder the development of life insurance in Ukraine.

scholarly journals ANALYSIS OF COMPETITIVE POSITIONS OF INSURANCE COMPANIES IN THE NON-LIFE INSURANCE MARKET IN UKRAINE

2019 ◽  
pp. 88-94
Author(s):  
O. Pakhnenko ◽  
O. Zhuravka ◽  
V. Podhorna ◽  
A. Sukhomlyn
Keyword(s):  
Market Share ◽  
Life Insurance ◽  
Motor Vehicle ◽  
Market Concentration ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Insurance Premiums ◽  
Property Insurance ◽  
Financial Condition

The paper explores the practical aspects of forming a competitive environment in the non-life insurance market of Ukraine and analyzes the competitiveness and financial performance of leading insurance companies. Based on the analysis of non-life insurance market concentration indicators, the authors concluded that there is no clear leader in this market, the level of market concentration is negligible. Based on the analysis of non-life insurance market leaders by volume of gross insurance premiums in the whole market and by main types of non-life insurance (CASCO, motor vehicle liability insurance, property insurance, fire and catastrophe risk insurance, CARGO, health insurance) the authors found that the leadership of insurance companies in the market does not mean their leadership in all types of non-life insurance; some insurance companies specialize in certain types of insurance and not being leaders in the insurance market at all occupy leading positions in certain segments of non-life insurance market. In order to provide a general assessment of the competitiveness of individual insurance companies in the non-life insurance market, the following indicators were selected: the volume of gross insurance premiums, gross insurance payments, insurance reserves and the amount of equity. In order to assess the size of market share of an individual insurance company in a more objective way, it is suggested to calculate the average share of the insurance company. The calculations made it possible to identify the leaders of the non-life insurance market in 2018 and to explore the dynamics of changes in their competitive position during 2016-2018. For the three insurance companies that have been identified as the leaders of the Ukrainian market non-life insurance in 2018 (“UNIKA”, “AXA Insurance” and “PZU Ukraine”), the authors analyzed the main indicators of their financial condition, namely the profitability of insurance services, profitability of sales, return on assets, return on equity, overall liquidity, absolute liquidity and autonomy. It was found that all the analyzed insurance companies are profitable, however, among the three leading Ukrainian insurance companies, the most effective in 2018 was the insurance company “PZU Ukraine” and the least profitable – “UNIKA”. Keywords: competitiveness, insurance company, market concentration, market share, competition.

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 CONCENTRATION AND COMPETITION RESEARCH. THE INSURANCE MARKET OF UKRAINE

2019 ◽  
pp. 26-35 ◽  
Author(s):  
O. Zhuravka ◽  
O. Pakhnenko ◽  
A. Sukhomlyn
Keyword(s):  
Life Insurance ◽  
Concentration Level ◽  
Market Concentration ◽  
Insurance Market ◽  
Insurance Companies ◽  
Economic Science ◽  
Insurance Premiums ◽  
The World ◽  
Risk Insurance ◽  
Significant Concentration

The concentration of the insurance market is an objective process that evolves by the trends of the world market laws. In practice, many countries use a whole set of indicators that are developed by the world economic science to estimate the concentration level in different sectors of the economy. Official statistics, unfortunately, give only a fragmentary assessment of the concentration level of the domestic insurance market. The National Financial Services Commission considers two indicators: the concentration ratio and the Herfindahl-Hirschman index. The analysis of these indicators is provided on the whole market and separately on the non-life and Life insurance markets only by the volume of insurance premiums. Such an assessment is very general, and the insurance market of Ukraine remains informationally closed. Studies have shown that the level of market concentration is related to the processes of monopolization and competition. Significant concentration on the life insurance market, which in turn defines it as moderately monopolized and not a significant concentration on the risk insurance market, which has a significant level of competition. However, among a large number of insurance companies in the insurance market other than life insurance, it is possible to single out leaders who, compared to their competitors, have a significant amount of insurance payments and hold a significant share of the market in terms of insurance premiums, assets and what is important for customer - the proper level of payments, which is confirmed by the amount of insurance claims. In the market of risk insurance of Ukraine the leaders are such system-forming insurance companies as «UNIKA», «IG TAS», «ARSENAL UKRAINE», «PZU UKRAINE», «АХА INSURANCE» and «INGO UKRAINE». Key words: insurance market, concentration of insurance market, rating, assets of insurance companies, level of payments, competition.

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 Trust – the Intangible Asset of Policyholder Behavior on Insurance Market

2016 ◽  
Vol 63 (s1) ◽  
pp. 125-136 ◽  
Author(s):  
Gabriela-Mihaela Mureşan ◽  
Gabriel Armean
Keyword(s):  
Life Insurance ◽  
Financial Services ◽  
Positive Impact ◽  
Multiple Correspondence Analysis ◽  
Insurance Market ◽  
Insurance Companies ◽  
Intangible Asset ◽  
Computer Assisted ◽  
Initial Sample

Abstract Our analysis aims to identify the typology of consumers’ behavior on insurance market. The initial sample consisted of 1579 individuals who were randomly selected by Metro Media Transilvania (MMT) with the Computer-Assisted Telephonic Interview (CATI) method. Using the Multiple Correspondence Analysis (MCA) and logistic regression, we are showing that higher levels of trust, pleasant experiences, income and education have a positive impact on insurance development. This theoretical approach is relatively new as there are no specialized studies to investigate the intangible asset in insurance companies in Romania’s case. This article should help the insurers to understand the role of trust and the importance of pleasant experiences in selling financial services such as life insurance and voluntary private pension.

Determinants of Derivative Usage in the Life and General Insurance Industry: The Australian Evidence

2003 ◽  
Vol 06 (04) ◽  
pp. 405-431 ◽  
Author(s):  
Marc De Ceuster ◽  
Liam Flanagan ◽  
Allan Hodgson ◽  
Mohammad I. Tahir
Keyword(s):  
Life Insurance ◽  
Insurance Industry ◽  
Cost Effective ◽  
Insurance Companies ◽  
Long Tail ◽  
Life Insurers ◽  
Market Risks ◽  
Life Insurance Industry ◽  
General Insurance ◽  
Standard Operating

Core business and financial market risks are not easily reduced by standard operating procedures in insurance companies. Derivatives theoretically provide a cost effective vehicle to hedge these risks. This paper provides an empirical analysis of the determinants of derivative usage as well as the extent of derivative usage in the Australian insurance industry in both life and general insurance companies for the period 1997–1999. Empirical results for the Australian life insurance industry in general confirm the findings of UK and US based research. However, the Australian general insurance industry does not appear to follow the conclusions of previous literature. Our results indicate that for life insurers, the determinants of derivative usage were size, leverage and reinsurance. For the general insurance industry the determinants were size and the extent of long tail lines of business written. As regards the determinants of the extent of derivative usage, these were size and asset-liability duration mismatches for life insurers. For the general insurance industry the determinants of the extent of derivative usage were size, the extent of long tail lines of business written, and the reporting year.

scholarly journals Stackelberg Equilibrium Premium Strategies for Push-Pull Competition in a Non-Life Insurance Market with Product Differentiation

Risks ◽  
2019 ◽  
Vol 7 (2) ◽  
pp. 49
Author(s):  
Søren Asmussen ◽  
Bent Jesper Christensen ◽  
Julie Thøgersen
Keyword(s):  
Differential Game ◽  
Product Differentiation ◽  
Life Insurance ◽  
Diffusion Approximation ◽  
Risk Process ◽  
Stackelberg Equilibrium ◽  
Insurance Market ◽  
Insurance Companies

Two insurance companies I 1 , I 2 with reserves R 1 ( t ) , R 2 ( t ) compete for customers, such that in a suitable differential game the smaller company I 2 with R 2 ( 0 ) < R 1 ( 0 ) aims at minimizing R 1 ( t ) − R 2 ( t ) by using the premium p 2 as control and the larger I 1 at maximizing by using p 1 . Deductibles K 1 , K 2 are fixed but may be different. If K 1 > K 2 and I 2 is the leader choosing its premium first, conditions for Stackelberg equilibrium are established. For gamma-distributed rates of claim arrivals, explicit equilibrium premiums are obtained, and shown to depend on the running reserve difference. The analysis is based on the diffusion approximation to a standard Cramér-Lundberg risk process extended to allow investment in a risk-free asset.

scholarly journals PENERAPAN METODE BAYES DALAM MENGESTIMASI PREMI KREDIBILITAS PADA ASURANSI UMUM

2021 ◽  
Vol 10 (4) ◽  
pp. 241
Author(s):  
RAIN FERNANDO BANGUN ◽  
I NYOMAN WIDANA ◽  
DESAK PUTU EKA NILAKUSMAWATI
Keyword(s):  
Empirical Bayes ◽  
Theory Model ◽  
Credibility Theory ◽  
Insurance Companies ◽  
Insurance Premiums ◽  
General Insurance ◽  
The Future

Determination of insurance premiums is very important the calculation must be done carefully so that there is experience losses. The purpose of this research is to find out the application of empirical Bayes credibility theory Model 1 and estimate of the credibility premium on general insurance. A method that can help in overcoming these problems, that is empirical Bayes credibility theory Model 1, results of the estimated credibility premium credibility (in Euros) for insurance companies Alianz, Csob, Generali, Koop, Unisqa, and Wusten respectively as follows: 46.774811, 7.801307, 10.368991, 58.812250, 6.703035, and 5.091605.  These results, the average claim is greater than the credibility premium, so that insurance companies can reserve premiums for the future.

scholarly journals Insurance Market of Ukraine: Current State and Development Problems

2020 ◽  
pp. 284-291
Author(s):  
Olha Kotsiurba ◽  
◽  
Daria Nasypaiko ◽  
Keyword(s):  
Life Insurance ◽  
Sharp Decrease ◽  
State Level ◽  
Insurance Market ◽  
Insurance Companies ◽  
Economic Downturn ◽  
Cyber Insurance ◽  
Current State ◽  
National Insurance ◽  
Stable Development

The article is devoted to the study of the peculiarities of the Ukraine’ insurance market functioning in the modern conditions of emergence of new unforeseen threats and challenges. The current state of the national insurance market is analyzed and the main trends of its development in 2017-2020 are identified. It was found that the change in the main indicators of the insurance market of Ukraine occurred under the influence of economic downturn due to the spread of coronary heart disease. Thus, if until 2020 the national insurance market was marked by insignificant but stable development, then from 2020 it was significantly affected by restrictive quarantine measures at the state level, which led to a sharp decrease of 19% in gross insurance premiums compared to 2019. There was a decrease in the number of insurers during the study period from 296 to 215, with the largest decrease in the number of companies providing insurance other than life insurance. It is noted that the impetus for the national insurance market development will provide the sale of new insurance products, such as cyber-insurance, P2P insurance and microinsurance, blockchain and smart contracts in insurance, insuretech. The main problems that hinder the development of the national insurance market are identified. These include: the lack of a unified state strategy for the development of the national insurance market, the change of the regulator and, accordingly, the general vision of the development of the national insurance market by its representatives; imperfection and fragmentation of the regulatory framework in the field of insurance; underdeveloped financial market and lack of liquid and reliable financial instruments for investing resources of insurance companies; fears of fraud; low level of innovation by insurers; improper level of information openness of the insurance market, etc. The solution of these problems will ensure its formation as a driver of economic development of the country.

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