scholarly journals An Analysis of the Performance of General Insurance Companies in India

2019 ◽  
Vol 8 (1) ◽  
pp. 20-27
Author(s):  
Soheli Ghose ◽  
Raman Kumar
Keyword(s):  
Insurance Industry ◽  
Secondary Data ◽  
Annual Reports ◽  
Insurance Companies ◽  
Insurance Sector ◽  
General Insurance ◽  
Growth Prospects ◽  
Rapid Pace ◽  
The Stability ◽  
Pro Forma

The General Insurance Industry in India is growing at a very rapid pace. This is an empirical research based on secondary data collected from Annual Reports and Pro-forma Schedules of IRDA. An Excel data Model was created to taken in the core figures of GWP, NEP, NP and others of 4 General Insurance Majors to calculate other relevant ratios as need for the analysis. The objectives of this study are to analyze a few General Insurance companies in India and core Ratios related to the Insurance Sector only and to comparatively analyse Retention ratio, Total Claims Incurred, Earned Incurred Loss Ratio, and Combined Ratio. The conclusion report has been framed on the basis of which company seems to be the best with respect to its Future Growth prospects, Risk prospects and the stability of its growing business. Out of the companies analyzed, TATA-AIG GENERAL INSURANCE has a good future prospect.

A DEA-investigation of efficiency of the Indian general insurance during recession

2014 ◽  
Vol 11 (1) ◽  
pp. 115-136 ◽  
Author(s):  
Santanu Mandal ◽  
Surajit Ghosh Dastidar
Keyword(s):  
Malmquist Index ◽  
Secondary Data ◽  
Annual Reports ◽  
Insurance Companies ◽  
Operating Characteristics ◽  
Content Type ◽  
Insurance Sector ◽  
General Insurance ◽  
Using Data ◽  
The Impact

Purpose – The purpose of this paper is to investigate the efficiency analysis of the Indian general insurance sector using data envelopment analysis (DEA) and subsequently assess the impact (if any) of the global slowdown on the performance of the allied sector. Design/methodology/approach – The paper aims to analyze the operating performance of 12 general insurance companies in India between 2006-2007 and 2009-2010 using DEA based on secondary data collected from Insurance Regulatory and Development Authority Annual Reports. Findings – Findings clearly indicate that the global economic slowdown has severely affected the performance of the private sector companies; while the public sector companies exhibited relatively lesser variation in performance levels. Research limitations/implications – The methodology employed in the study estimates relative efficiencies without assuming any functional form; as a result the proper comparison of input utilized with the output produced is not possible. Several other tools like Malmquist Index and two-stage procedure have not been used. Originality/value – The study brings into light the operating characteristics and efficiencies of the Indian general insurance sector during the global slowdown and therefore holds practical value for policy makers and practitioners as well as for the decision makers of the firms employed in the study.

scholarly journals A Study on Impact of FDI on Selected Private Sector Insurance Companies in India

2017 ◽  
Author(s):  
C.K. Hebbar ◽  
Meenakshi Acharya
Keyword(s):  
Private Sector ◽  
Negative Impact ◽  
Insurance Industry ◽  
Secondary Data ◽  
Insurance Companies ◽  
Insurance Markets ◽  
Insurance Sector ◽  
Previous Level ◽  
The Impact ◽  
Indian Insurance

India is one among the most promising emerging insurance markets in the world. Indian insurance sector was liberalised in 2001. The insurance industry in India has undergone transformational changes over the last 15 years. In July 2014, the Cabinet Committee on Economic Affairs (CCEA) approved 49% FDI in insurance from the previous level of 26%. This paper aimed at examining the impact of FDI on the performance of selected private sector insurance companies. The study is based on secondary data and it is a descriptive study. This paper found that FDI had a significant positive as well as negative impact on areas which were studied in the paper.

scholarly journals Effects of Underwriting and Claims Management on Performance of Property and Casualty Insurance Companies in East Africa

2017 ◽  
Vol 13 (13) ◽  
pp. 358
Author(s):  
Caren B. Angima ◽  
Mirie Mwangi
Keyword(s):  
Financial Performance ◽  
East Africa ◽  
Management Practices ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Insurance Companies ◽  
Insurance Sector ◽  
General Insurance ◽  
Claims Management

The insurance sector plays an important role in service economy of any country by underwriting of risks inherent in most sectors thus providing a sense of peace to most economic entities. Performance of general insurance companies is expected to be related to various factors, including optimal underwriting and prompt and efficient claims management functions. This study investigated the effect of underwriting and claims management practices on the performance of general insurance firms in East Africa. The study employed multiple linear regression analysis using primary and secondary data collected from 82 general insurers in Kenya, Uganda and Tanzania. The findings show that there is a significant positive relationship between underwriting and claims management practices employed by the firms and non-financial performance, but the relationship with financial performance was insignificant. The implication is that a profit oriented insurance firm should embrace a claims function that is closely related with the underwriting and pricing of the firm’s portfolio for meaningful results. It is recommended that general insurance companies focus on other important factors besides underwriting and claims management order to improve overall financial performance.

scholarly journals Assessment of measurement and ranking of technical efficiencies of Ethiopian general insurers

2020 ◽  
Vol 18 (4) ◽  
pp. 334-350
Author(s):  
Kishor Meher ◽  
Abebe Asfawu ◽  
Maheswaran Muthuraman ◽  
Sanjay Kumar Satapathy
Keyword(s):  
Key Management ◽  
Management Practices ◽  
Descriptive Analysis ◽  
Returns To Scale ◽  
Secondary Data ◽  
Annual Reports ◽  
Insurance Companies ◽  
General Category ◽  
Optimal Scale ◽  
General Insurance

The non-life insurance companies indemnify the properties from the risk of being damaged due to unforeseen events like natural calamity or accidents. The probability of bankruptcy is imminent on account of large, unprecedented claims. As a risk saver of various society stakeholders, these insurers must be efficient while managing the insurance business. The present research thrusts upon to evaluate the efficiency and decomposition that would further direct the insurers towards achieving optimal scale. Thus, the captioned research aims to measure and rank the technical efficiency of the general insurance firms of Ethiopia and evaluate and analyze their relative efficiencies. The research adopts a quantitative approach and deploys descriptive analysis by a panel data of 17 Ethiopian general insurers for the period 2005-2016 on the input-output-oriented approach of Data Envelopment Analysis (DEA). The data of general insurance are obtained using stratified sampling from the mix of life and general category. The inputs employed are total expenses, total liabilities, and shareholder’s fund, while net premiums earned and income from investments are used as outputs. The findings reveal that the public insurer is technically efficient by operating at an optimal scale as compared to all private insurers who, in turn, experience pure technical inefficiency to scale inefficiency due to poor management practices and erroneous utilization of input materials. Increasing Returns to Scale (IRS) witnessed a major form of scale inefficiency in 2016. Private insurers should increase capital and size of assets, cost efficiency, and improve key management skills. AcknowledgmentThe authors express their thanks of gratitude for the support extended by Ethiopia’s insurance companies’ officials to provide the hard copies of published annual reports up to 2016 as the secondary data are not available after that year’s analysis.

scholarly journals Are General Insurance Companies Efficient in their Performance? – A Comparison

2018 ◽  
Vol 17 (3) ◽  
pp. 1-7
Author(s):  
P Muthulakshmi
Keyword(s):  
Public Sector ◽  
Secondary Data ◽  
Insurance Companies ◽  
Return On Equity ◽  
The Public ◽  
Insurance Sector ◽  
Geographic Boundaries ◽  
General Insurance ◽  
Income Ratio ◽  
Equity Ratio

The insurance sector has witnessed significant changes in the last few years, specifically due to the effects of liberalisation, globalisation, and privatisation. It is imperative to compare and study the earnings and profitability of public sector non-life general insurance companies in India. The public sector non-life general insurance companies are competing with each other, and also with the private players in the same industry and thereby reducing the processing costs and facilitating the innovation of different types of policies across the geographic boundaries. In this paper, secondary data is used to analyse the earnings and profitability of non-life general insurance companies in India by using certain ratios which are available exclusively to evaluate the performance of insurance companies such as Claim Ratio, Expenses Ratio, Combined Ratio, Investment Income Ratio and Return on Equity Ratio.   , , , Ratio Analysis

Total Factor Productivity Growth of Indian Life Insurance Companies: A Malmquist Approach

2021 ◽  
pp. 232-236
Keyword(s):  
Total Factor Productivity ◽  
Life Insurance ◽  
Productivity Growth ◽  
Malmquist Index ◽  
Secondary Data ◽  
Private Life ◽  
Annual Reports ◽  
Insurance Companies ◽  
Factor Productivity ◽  
Insurance Sector

This study aimed to investigate the productivity growth of Indian life insurance companies using the Malmquist index. This study analyzed all the 24 life insurance companies' productivity performance in India from the financial year 2012-2013 to 2016-2017 using the Malmquist index based on the secondary data collected from Insurance Regulatory and Development Authority's Annual Reports. Findings indicated that the total factor productivity (TFP) of the life insurance sector increased at an average of 27.6 percent during the study period. On average, this improvement was ascribed to an efficiency improvement of 5.5 percent and a technological improvement of 20.9 percent. The results also indicated that the private life insurers experienced higher productivity growth of 30.2 percent than the state-owned Life Insurance Corporation of India's 17.2 percent. This is the first study that comprehensively analyzed the changes in total factor productivity of the Indian life insurance sector. The study holds important and practical insights for policymakers, practitioners, and decision-makers.

Evaluating the Efficiency of Indian Life Insurance Sector

2020 ◽  
pp. 72-80
Keyword(s):  
Life Insurance ◽  
Secondary Data ◽  
Private Life ◽  
Annual Reports ◽  
Insurance Companies ◽  
Operating Characteristics ◽  
Entire Study ◽  
Insurance Sector ◽  
Life Insurers ◽  
Using Data

ABSTRACT The purpose of study was to investigate the technical efficiency of Indian life insurance companies using data envelopment analysis (DEA) to find the reasons for inefficiency. It aimed to analyze the efficiency of all the 24 life insurance companies operating in India for the period 2013-2017 using DEA based on secondary data collected from the Insurance Regulatory and Development Authority Annual Reports. Findings indicated that the state life insurer, that is, Life Insurance Corporation (LIC) was efficient throughout the entire study period. The private life insurance companies exhibited variations in their performance levels as they were comparatively new in the life insurance sector and of different sizes. Some private life insurers operated efficiently, while some private life insurers were less productive using excessive capital; on the other hand, few life insurers grew fast using technology. The methodology employed in this study estimates relative efficiencies without assuming any functional form; as a result, the proper comparison of input utilized with the output produced was not possible. The study brought into light the operating characteristics and efficiencies of all the Indian life insurance companies during the period 2013-2017 and therefore holds important insights for policy makers and practitioners as well as for the decision makers.

scholarly journals EXAMINING THE EFFECTS OF FINANCIAL FACTORS ON PROFITABILITY OF GENERAL INSURANCE COMPANIES IN KENYA

2020 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Joseph Nthuli Ngunguni ◽  
Dr Sedina Misango ◽  
Dr. Martin Onsiro
Keyword(s):  
Regression Coefficient ◽  
Secondary Data ◽  
Annual Reports ◽  
Insurance Companies ◽  
P Value ◽  
Unique Contribution ◽  
Loss Ratio ◽  
Leverage Ratio ◽  
Financial Factors ◽  
General Insurance

Purpose: The objective of this study was to examine the financial factors which affect the profitability of general insurance companies in Kenya. The profitability in this study is represented by ROA, as dependent variable for the period 2013 to 2017. Independent variables in this study were liquidity, leverage, loss ratio and expenses ratio. Methodology: The type of research design used in this study was both descriptive as well as referential analysis. The study applied a census procedure to study all the 28 general insurance companies and targeted the entire population of 28 companies. Secondary data was collected from individual annual published financial statements of 28 general insurance companies for 5 years; 2013 to 2017, AKI reports and IRA published annual reports. A collection data sheet was used to collect the relevant data from all the 28 general insurance companies. After the data was collected and sorted, it was analyzed using referential analysis (multiple regression analysis). This was assisted by SPSS (Version 20) software. Findings: The study revealed that the regression coefficient of loss ratio was -0.068, t-statistics -0.415 and p-value of 0.682 while that of leverage ratio was -0.048, t-statistics -0.546 and p-value of 0.590. Liquidity ratio had a regression coefficient of 4.238, t-statistics 3.257 and p-value of 0.003 while expenses ratio had a regression coefficient of -0.281, t-statistics -3.840 and p-value of 0.001. Unique contribution to theory, practice and policy: The study recommends that the management of general insurance companies in Kenya need to address liquidity and expenses by minimizing expenses and maximizing liquidity in order to be on the safe side as far as profitability is concerned. The study also recommends that regulators and other stakeholders, within the industry, should at regular interval intensify efforts to ascertain the claims handling procedures currently in use by insurance companies in Kenya.

scholarly journals Evaluating Performance of Insurance Sector in Pakistan Through Benchmark Performance Indicators

2021 ◽  
Vol VI (I) ◽  
pp. 363-372
Author(s):  
Bakhtawar ◽  
Kashif Hamid ◽  
Ali Raza
Keyword(s):  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Insurance Companies ◽  
Insurance Sector ◽  
Moderate Growth ◽  
Investment Returns ◽  
Total Investment ◽  
Overall Performance ◽  
Grey Relation

Benchmarking has been very important in measurement, comparison, and improvement. Important benchmarking indicators such as leverage, liquidity, stock performance, profitability, asset utilization and growth are used to examine the performance of various companies in different businesses. The current study is based on secondary data, which were collected from annual reports of 14 insurance companies of the Listed Pakistan Stock Exchange during the period of 2014-2018. For this purpose, the Technique for order Preferences by the Similarity to Ideal Solution (TOPSIS) based on Grey Relation Analysis (GRA) has been used. The findings of the study help managers of moderate growth and low growth insurance companies to formulate policies to improve their performance by looking at the policies of highly growing Insurance companies. The results concluded that overall ranking of insurance companies from 2014 to 2018, JLIL ranked 1st in overall performance in the year 2014. It is due to high net sales and total investment returns as compared to other insurance companies.

Developing Managerial Quotient for Sustainable Client Servicing in Insurance Sector

2021 ◽  
pp. 134-156
Author(s):  
Neeta Baporikar
Keyword(s):  
Service Industry ◽  
Insurance Industry ◽  
Secondary Data ◽  
Middle Level ◽  
Primary Data ◽  
Business Sustainability ◽  
Managerial Skills ◽  
Client Retention ◽  
Insurance Sector ◽  
General Insurance

The insurance sector consists of two branches: life and non-life. Non-life is commonly referred to as general insurance. Insurance is a service industry and client retention influences growth and business sustainability. Being a service industry managerial skills for client servicing is essential for effectiveness in the insurance sector. Further, middle-level management directly deals with clients. So, to mitigate the challenges of privatization, competition, stakeholder's expectations, etc., appropriate managerial skills for middle management is critical. A mixed-methods approach was adopted, primary data collected through questionnaires and secondary data from published records. The sample consists of middle-level managers of the general insurance industry from the Pune region, India. The analysis was done using descriptive statistics. Findings reflect that higher managerial quotient is associated with client servicing quotient.

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