Catastrophic Risk, the Disequilibrium of Agricultural Insurance Markets and Reinsurance - Based on the Data from Hubei

2013 ◽  
Vol 798-799 ◽  
pp. 846-850
Author(s):  
Hui Ru Xing ◽  
Jiang Ping Tao ◽  
Wei Zhao
Keyword(s):  
Agricultural Production ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Markets ◽  
Insurance Risk ◽  
Agricultural Insurance ◽  
The Sustainable Development ◽  
Catastrophic Risk ◽  
Risk Transfer ◽  
Transfer Mechanisms

Catastrophic risk existing objectively in agricultural production is the main cause for the imbalance of the agricultural insurance markets, and to promote the sustainable development of the agricultural insurance, it is necessary to improve the agricultural insurance risk transfer mechanisms. Under the condition of farms and insurance companies expected utility maximum, we develop an agricultural insurance market equilibrium model based on the M-V preference function, and then demonstrate that catastrophic risk leads to the imbalance in the agricultural insurance market. Insurance companies involved in reinsurance arrangements helps rectify the imbalances in agricultural insurance market. Based on this analysis we verify the development of Hubeis agricultural insurance market, and then simulate the reinsurance arrangement of Hubei agricultural insurance. The theoretic and empirical analysis has an implication for the design of agricultural insurance catastrophe risk transfer tools.

The current state of the agricultural insurance market of Ukraine

2020 ◽  
Vol 2 (97) ◽  
pp. 208-218
Author(s):  
A.V. Rolinsky ◽  
◽  
Y.V. Ulianych ◽  
S.A. Ptashnyk
Keyword(s):  
Agricultural Production ◽  
Agricultural Sector ◽  
Insurance Market ◽  
Insurance Companies ◽  
Agricultural Crops ◽  
Agricultural Insurance ◽  
Stage Of Development ◽  
Current State ◽  
Increased Risk ◽  
Risk Insurance

Ukraine occupies a leading position in the world in the production and export of agricultural products. At the present stage of development of the agricultural sector, the most important task is its further development, because the country has significant potential to increase and improve the quality of production. Agricultural production is one of the important, specific and at the same time the most risky areas of human activity. Specific features of the agricultural market: high cost of facilities due to the large area of land, increased risk of production, cumulative losses due to natural disasters and progressive climate change, he duration of the production cycle, affects the profitability of farmers, necessitate the use of one of the most important tools for minimizing risks — insurance and, if necessary, further diversification of risks through reinsurance. The article considers the main indicators of agricultural insurance: in terms of insurance companies, in terms of regions, in terms of agricultural crops. The amount of insurance payments in terms of insurance companies and agricultural crops is analyzed. Trends in animal insurance are presented. The agricultural insurance market in Ukraine is developing slowly, but in recent years still shows a positive upward trend. For a country with a huge potential of the agricultural sector of the economy, the saturation of the agricultural insurance market with insurance services and the actual volume of agricultural risk insurance, undoubtedly, are insufficient. Now agricultural insurance in Ukraine is actively developing. However, despite the positive dynamics, the current state of agricultural insurance in Ukraine does not meet its main task - to manage risks in the agricultural sector to ensure its stable operation and sustainable development of the agricultural sector of the economy. The current system of agrarian risk insurance in Ukraine, including the provision of state support to the agricultural sector, requires improvement and should be aimed at ensuring adequate protection of the interests of agricultural producers and food security, stabilizing production and income in the agricultural sector and encouraging the best technology agricultural production

scholarly journals PROBLEMS OF AGRICULTURAL INSURANCE IN UKRAINE AND WAYS THEIR SOLUTIONS

2020 ◽  
pp. 20-34
Author(s):  
Larysa VDOVENKO
Keyword(s):  
Agricultural Production ◽  
Agricultural Sector ◽  
Insurance Market ◽  
Insurance Companies ◽  
Agricultural Insurance ◽  
Agricultural Producers ◽  
Economic Interests ◽  
Current Trends ◽  
Term Insurance ◽  
High Degree

The article is dedicated to the current trends of the agricultural insurance market in Ukraine. It has been established that for silskogospodarske, in accordance with the specific features and skills of the middling community, the need for a proper insurance business from a variety of derivative businesses in the case of uncomfortable natural businesses of unfair natural businesses. It is established that the risks inherent in agricultural production are systemic and create significant fees for most agricultural producers at the same time, which can lead to large insurance payments, so there is a system of regulation of complex economic processes in agriculture is insurance of agricultural products. The analysis of the legislative and normative protection of insurance claims has been completed. The payments were made, which is one of the important incentives for effective government insurance. The main indicators of insurance activity are analyzed, the development trends of the regions of Ukraine are determined, the problems of insurance and agricultural insurance are considered in the context of the participants in the events. A copy was made for the inexplicable activation of agricultural insurance as a key to the growth of the potential of the agricultural sector of the economy. In addition, the system of agricultural insurance is based on the protection of economic interests of the participants of the insurance companies (insurers, insurance and powers) and the short-term insurance of small losses in the aeronautical spheres. Based on an improved agricultural insurance system, affordability, improving the quality of insurance services, forming an effective insurance market infrastructure, a high degree of trust in insurers by policyholders, diversification of insurance products by special industry, the state's ability to provide real financial support for agricultural production.

scholarly journals Factors influencing and dynamics of the agricultural insurance market

VUZF Review ◽  
2021 ◽  
Vol 6 (2) ◽  
pp. 42-49
Author(s):  
Nataliya Tanklevska ◽  
Vitalina Yarmolenko
Keyword(s):  
Crop Production ◽  
Agricultural Sector ◽  
The State ◽  
Insurance Market ◽  
Insurance Companies ◽  
Agricultural Insurance ◽  
Agricultural Producers ◽  
Agricultural Enterprises ◽  
Insurance Sector ◽  
Factors Influencing

The article is aimed at identifying modern features of insurance in the agricultural sector of the Ukrainian economy and defining the factors of influence on the agricultural insurance market. The article discloses interpretation of the terms of «insurance» and «agricultural insurance» and also presents the types of possible risks arising in the activities of agricultural enterprises. The performance indicators of leading insurance companies in the field of agricultural insurance are analyzed. The current state and dynamics of insurance of agricultural risks, which arise both in the field of crop production and in livestock, are researched. This will allow predicting the future prospects of the market for insurance services and products, as well as finding possible optimal ways to solve the problems of product insurance, faced by the agricultural producers. The main factors influencing the efficiency of the insurance market in the agricultural insurance sector are allocated. The basic principles of insurance of agricultural products with the State support are analyzed. It is defined that the further development of agricultural insurance should be directed towards creating a profitable and safe environment for all participants in the agricultural market, which provides for the distribution of risks between agricultural producers, processing enterprises, banks, insurance companies and the State. The agricultural insurance of risks creates possibilities for advantageous harmonizing the interests of participants in the agricultural insurance market and the State as a party whose first priority is to ensure stable economic growth.

scholarly journals Insurance Protection of Agricultural Producers of Ukraine: A Review of Insurance Companies and Products

2021 ◽  
Vol 4 (519) ◽  
pp. 249-256
Author(s):  
N. M. Rubtsova ◽  
◽  
N. H. Radchenko ◽  
N. V. Trusova ◽  
◽  
...  
Keyword(s):  
Current System ◽  
Insurance Market ◽  
Insurance Companies ◽  
Domestic Sphere ◽  
Agricultural Insurance ◽  
Agricultural Producers ◽  
Agricultural Producer ◽  
Insurance Mechanism ◽  
Entire Amount ◽  
Limited Choice

The article is aimed at analyzing the work of insurance companies in the agricultural insurance market, evaluating their services for insurance protection of agricultural producers and studying the State’s efforts in supporting farmers in the sphere of agricultural insurance. In the course of the study, it is defined that the current system of agricultural insurance is unsatisfactory, and every year regressive processes are observed in the agricultural insurance market. The low demand for agricultural insurance in Ukraine is associated with the high cost of the service, limited choice of counter-parties, complexity of the insurance mechanism. The carried out analysis of the work of insurers in the agricultural insurance market indicates their partial participation in this type of insurance: for example, out of 64 insurers licensed for agricultural insurance, only less than a third provide services in this direction. As a result of the study of the line of insurance products for agricultural insurance, it is determined that complex and index insurance and insurance of animals and poultry are in great demand. It is found out that the extanrt system of agricultural insurance with the State support, even under the conditions of its functioning, would not have gained much popularity. The main reasons are a complex insurance mechanism, a one-time payment of 100% insurance premiums and the insecurity of the agricultural producer in obtaining the entire amount of subsidies belonging to him further on. In the future, in order to improve the situation in this industry, it is necessary to make certain amendments to the current legislation, which will revitalize the domestic sphere of agricultural insurance while providing confidence to agricultural producers in the continuity and reproduction of their output.

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.

scholarly journals ANALYSIS OF THE CURRENT SITUATION OF INSURANCE MARKET AND CREDIT INSURANCE IN RA

World Science ◽  
2018 ◽  
pp. 46-49
Author(s):  
Gohar Voskanyan
Keyword(s):  
The Body ◽  
Insurance Market ◽  
Insurance Companies ◽  
Agricultural Insurance ◽  
Agricultural Credit ◽  
Credit Insurance ◽  
Compulsory Insurance ◽  
The Republic ◽  
The Stability ◽  
Almost All

The Armenian insurance market has undergone major changes in the transition to a market economy. Growth tendencies were observed in almost all insurance indicators. At present, the RA Central Bank is the body overseeing the financial system of RA. The positive shifts in the insurance market are partially conditioned by its activities. The article presents the main directions of the activities of insurance companies in RA. Insurance premiums and insurance indemnities have undergone comparative analysis. In a number of countries the insurance is one of the most important prerequisites for the provision of agricultural loans through which banks try to mitigate their credit risk. Agricultural insurance is not implemented in the Republic of Armenia, which negatively affects the stability and development of the sector. Taking into account the advantages of compulsory insurance and the current socio-economic conditions created in Armenia, the article recommends to implement compulsory insurance of agricultural credits. The necessity of introduction of credit insurance in the RA agrarian sphere has been justified, the reasons of non-implementation of agricultural credit insurance has been raised, and the main results expected when implementing agricultural credit insurance has been presented.

scholarly journals CURRENT STATE OF REGIONAL INSURANCE BY THE EXAMPLE OF THE KEMEROVO REGION

2017 ◽  
Vol 2017 (1) ◽  
pp. 39-46
Author(s):  
Ольга Козлова ◽  
Olga Kozlova
Keyword(s):  
Third Party ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Risk ◽  
Current State ◽  
Insurance Portfolio ◽  
Compulsory Insurance ◽  
Hazardous Production ◽  
Car Insurance

<p>The article considers the current state of insurance market in the Kemerovo region, as well as trends affecting the market. In the crisis year of 2015, the insurance market of Russia and Kemerovo region was developing due to the growth of compulsory insurance and life insurance, whereas classical insurance saw a decline. Comparative analysis of insurance market in Russia showed a preferential development of optional medical insurance and compulsory third party car insurance in the regional insurance market. The article features an analysis of the structure of the insurance portfolio of the regional insurance companies, the place and the role of the regional insurance companies in the insurance market of the Kemerovo region. Regional insurance organizations specialize in voluntary health insurance, which reflects the specifics of the regional insurance risk, but its overall development is not steady, without regard to regional peculiarities. Conclusions are drawn about the lack of a regional perspective, the need for the development of regional insurance, since regional insurance organizations are able to take into account the specifics of the site and agree to cover relevant risks. An example is the compulsory insurance of civil liability of owners of hazardous production facilities, where a significant role belongs to the regional insurance organizations.</p>

scholarly journals ROADMAP FOR THE INTRODUCTION OF CYBER INSURANCE IN UKRAINE

2021 ◽  
pp. 217-226
Author(s):  
N.V. Prykaziuk ◽  
◽  
L.S. Gumenyuk ◽  
Keyword(s):  
Cyber Security ◽  
Customer Orientation ◽  
Cyber Attacks ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Markets ◽  
Cyber Insurance ◽  
Current State ◽  
Mechanism Of Interaction ◽  
Goals And Objectives

The article examines the process of implementing cyber insurance in the world and proposes a Roadmap for implementation in Ukraine. The key goals and objectives facing the insurance market of Ukraine and the regulator in order to achieve this goal are considered. Approximate deadlines for the necessary measures to prepare for the introduction of cyber insurance in the Ukrainian economy are outlined. The key features of regulations in the field of cyber security in the EU and Australia are highlighted and ways to adapt them in Ukraine are proposed. Promising means to increase the security of individuals and legal entities in the digital space on the example of the mechanism of interaction between insurers and expert organizations in Australia. The main vectors of cooperation between insurance companies and expert organizations in the field of cyber security in the Ukrainian and global insurance markets are listed. A system of interaction between the subjects of cyber-insurance relations with the positioning of the insured in the center of relations as a key participant in insurance has been developed, which proves the high customer orientation of this area of ​​insurance business. The current problems of the Ukrainian insurance market are substantiated and the ways of their solution through the mechanism of cyber insurance implementation are offered: modeling of the mechanism of estimation of losses from cyber attacks, monitoring of the current state of insurers, development of ways to minimize cyber incidents. The dynamics of cyber incidents in 2020 is analyzed and the correlation between the occurrence of global lockdowns caused by COVID-19 and the growth in the number of cyber attacks is revealed. Based on the analysis, it is proved that the introduction of cyber insurance in Ukraine is a necessary tool to protect all participants in insurance relations from cyber risks and for the development of the insurance market as a whole.

scholarly journals Risk transfer solutions for the insurance industry

2009 ◽  
Vol 54 (180) ◽  
pp. 57-90 ◽  
Author(s):  
Vladimir Njegomir ◽  
Rado Maksimovic
Keyword(s):  
Future Development ◽  
Insurance Industry ◽  
Insurance Companies ◽  
Foreseeable Future ◽  
Insurance Risk ◽  
Risk Transfer ◽  
Alternative Solutions

The paper focuses on the traditional and alternative mechanisms for insurance risk transfer that are available to global as well as to domestic insurance companies. The findings suggest that traditional insurance risk transfer solutions available to insurance industry nowadays will be predominant in the foreseeable future but the increasing role of alternative solutions is to be expected as the complementary rather than supplementary solution to traditional transfer. Additionally, findings suggest that it is reasonable to expect that future development of risk transfer solutions in Serbia will follow the path that has been passed by global insurance industry.

scholarly journals RISKS OF AGRICULTURAL PRODUCTS AND THE NEED FOR INSURANCE IN ARMENIA

2020 ◽  
pp. 25-29
Author(s):  
Hrant Hayrapetyan
Keyword(s):  
Systematic Study ◽  
Agricultural Production ◽  
Climatic Conditions ◽  
Agricultural Products ◽  
Insurance Companies ◽  
Agricultural Insurance ◽  
Agricultural Work ◽  
Insurance System ◽  
The Republic

Agriculture is one of the main sectors of the economy of the Republic of Armenia. The efficiency of agricultural production in the province is mainly due to climatic conditions. For this purpose, first of all, a systematic study should be carried out on the situation in the provinces, the agricultural features of each province, the dangers posed and the agricultural work being carried out. The features of this system are different in different countries, and their study will allow us to find similarities that can be applied in Armenia. Assessing the importance and difficulties of agricultural insurance, it is necessary to introduce an insurance system that equally expresses the interests of both the insured and the insurer. In other words, to neutralize farm risks, insurance companies will not increase their risks, so a reasonable way to balance them is to introduce a state-subsidized agricultural insurance system.

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