scholarly journals Alternative Method of Mitigating Risk on Medium and Large Corporations

2016 ◽  
Vol 11 (11) ◽  
pp. 164
Author(s):  
Raude John O. Messo
Keyword(s):  
Corporate Governance ◽  
Research Problem ◽  
Insurance Premium ◽  
Alternative Methods ◽  
Management Policy ◽  
Motor Vehicles ◽  
Insurance Companies ◽  
Insurance Premiums ◽  
Alternative Method ◽  
The Government

High operating costs and complexity of risks are impacting negatively on corporations’ profitability despite practicing corporate governance. Corporate governance requires that the management develops frameworks, structures and guidance to manage enterprise risk. The traditional methods of mitigating risk has relied heavily on insurance as the only mean of protecting enterprise against risks. This is now becoming too expensive for corporations, and, is not able to cover all risk exposures. This forms the basis of the research problem in this study. The purpose and objective of this study is to establish alternative methods of mitigating risks in corporations and, develop models for computing benefits accruing to the corporations as a result of using the new alternative method. As such, this study identifies financial assets, sinking fund, ploughing back of premiums as possible investments where foregone insurance premiums can be invested and, develop a model for computing earnings resulting from such investments. This study applies Actuarial Theory, Financial Theory of Risk Transfer, Modigliani and Miller Theory and Agency Theory, and use both primary and secondary data collected from National Transport and Safety Authority, Kenya and Registrar of Motor vehicles, Kenya target populations, namely number of countries in Europe and North America and the number of insurance companies in Kenya. This study is of significance to the business communities, scholars and researchers, the government and the general public by: (1), providing a better understanding for designing and formulating risk management policy in their organizations, (2), providing mechanism for investing the foregone insurance premium and (3), strengthening knowledge and further research in this area. In summary this study is tenable and a better alternative to ever increasing insurance premiums.

scholarly journals The Effect of Good Corporate Governance and Premium Growth on the Performance of Insurance Companies

2017 ◽  
Vol 2 (2) ◽  
pp. 01-07
Author(s):  
Markonah Markonah ◽  
Achmad Sudiro ◽  
Surachman Surachman ◽  
Mintarti Rahayu
Keyword(s):  
Corporate Governance ◽  
Sampling Method ◽  
Stock Exchange ◽  
Insurance Premium ◽  
Jel Classification ◽  
Insurance Companies ◽  
Insurance Premiums ◽  
Insurance Sector ◽  
Existing Problems ◽  
Good Corporate Governance

Objective - Insurance companies in Indonesia are considered an important part of society by the Indonesian government. Corporate governance was a major problem during the post-financial crisis period, particularly in emerging markets in Indonesia. Financial Institutions considered the possibility of increasing insurance premiums to cover their operating costs and increase their profits. The purpose of this study is to measure the effect of corporate governance and premium growth on the performance of the insurance sector, to determine the characteristics of good corporate governance. Methodology/Technique - The samples used in this study include insurance companies listed on the Indonesia Stock Exchange between 2011 and 2015. The data used in the study is derived from the Indonesian Stock Exchange Corner. The method of analysis used is descriptive statistics and linear regression. The research objectives are to analyze the influence of the independent variables on the dependent variable. A purposive sampling method is used to determine the sample size of the study. This method generated a sample of 9 commercial insurance companies. Findings - The findings show that corporate governance is significantly and positively related to ROA whereas Insurance Premiums are not significantly related to ROA. Novelty - Study suggests that the insurance companies must aim to improve corporate governance structures by finding solutions to existing problems and improving the management structures of the company, in order to attract future investment which will ultimately lead to an increase in ROA and ROE. Type of Paper: Empirical Keywords: Corporate Governance; Insurance Premium; Corporate Performance; Growth. JEL Classification: G22, L25, M41

scholarly journals Rice crop insurance in Indonesia: adaptation to climate and farm production support

2021 ◽  
Vol 892 (1) ◽  
pp. 012076
Author(s):  
D Kusumaningrum ◽  
K Aldyan ◽  
V A Sutomo ◽  
D Saraswati ◽  
G Ariyan ◽  
...  
Keyword(s):  
Crop Insurance ◽  
Group Discussion ◽  
Rice Crop ◽  
Insurance Companies ◽  
Integration Scheme ◽  
Insurance Premiums ◽  
Local Agriculture ◽  
Financing Costs ◽  
Loan Risk ◽  
The Government

Abstract Indonesia’s Rice Crop Insurance (AUTP) scheme has successfully protected farmers from significant crop losses due to natural disasters. However, the current amount of AUTP’s compensation is still unable to accommodate farmer’s financing costs (i.e., unpaid micro-loan and its interests) to support crops production. This results in higher micro-loan risk and hinder the sustainability of farming enterprises. In this regard, the existing People’s Business Credit (KUR) should supposedly be accessible as a micro-loan source to help farmers fund their farms. This study has two objectives: (1) formulate an integration scheme between KUR and AUTP, and (2) determine the appropriate insurance premiums to meet the farmer’s operational and financing costs. This research used 100,000 Monte Carlo Simulations using lognormal distributions with assumptions based on the results of focus group discussion and in-depth interviews with farmer groups, the local Agriculture Service, and micro-loan distributors, as well as the data from the Ministry of Agriculture from the period of 2018–2020. Additionally, Individual Area Yield Index (I-AYI) policy and loss ratio is used to determine and evaluate the new integrated crop insurance premiums. The study revealed that the farmers expect affordable, accessible, and beneficial insurance products with premium subsidies bundled with KUR. Therefore, the government should develop an integration of crop insurance with KUR and determine the affordable premium calculations along with the insurance companies. Based on the simulation results, the total pure premium is estimated around IDR 1 million for a minimum KUR loan of IDR 8 million (suitable for farming costs).

Taxation of Insurance Premiums in the EU Cross-Border Insurance Business

2021 ◽  
Vol 3 (108) ◽  
pp. 52-70
Author(s):  
Anna Tarasiuk ◽  
Bracken Crossley
Keyword(s):  
Value Added ◽  
Insurance Premium ◽  
Point Of View ◽  
Insurance Companies ◽  
Insurance Premiums ◽  
Insurance Contracts ◽  
Cross Border ◽  
Tax Exemptions ◽  
Court Of Justice ◽  
The Eu

As in many other cases of business activity, the performance of insurance activity involves various types of tax charges. Insurance contracts, having been excluded from the scope of value-added tax at the EU level, are subjected to taxes specific to insurance activity, namely insurance premium taxes, which are discussed in the article. However, insurance premium tax regulations are not harmonised at the EU level and vary immensely from one country to another. In fact, in some EU countries, including Poland, no such taxes have been implemented whatsoever. The issue discussed in the article is related to the fact that an increasing number of insurance companies perform insurance activity on a cross border basis. From this point of view, although there is no such tax in Poland, it may be of great importance to Polish insurance companies that insure risks located outside Poland. The regulations concerning the insurance premium tax depend on internal decisions of individual European Union countries, both in terms of the introduction of such tax, exemptions, and rates, and they may differ significantly across those jurisdictions. Due to the nature of cross-border activity and the rules on the localisation of the risk associated with the taxation of premiums, it was not clear whether and to what extent, in the case of insurance of risks located outside Poland, a tax obligation arises in respect of insurance premiums. These questions were addressed by the Court of Justice of the EU in several cases (C-118/96, C191/99, C-243-11). The CJEU decisions have revealed the multifaceted complexity inherent to the taxation of cross border insurance contracts.

scholarly journals PENENTUAN PREMI DAN CADANGAN PADA ASURANSI PENDIDIKAN DENGAN MEMERHATIKAN PELUANG HIDUP ANAK

2021 ◽  
Vol 10 (4) ◽  
pp. 246
Author(s):  
NI LUH DE SISKA SARI DEWI ◽  
I NYOMAN WIDANA ◽  
KETUT JAYANEGARA
Keyword(s):  
Equivalence Principle ◽  
Secondary Data ◽  
Insurance Premium ◽  
Insurance Companies ◽  
Insurance Premiums ◽  
Life Chances ◽  
Education Fund ◽  
Mortality Table ◽  
Exact Amount ◽  
Value Of Education

Education insurance provides services in the field of education. In education insurance, the insured not only gets protection benefits but also education funds. These benefits will be received if they have paid premiums. Insurance companies also need to set the exact amount of policy value. The purpose of this study is to determine the premium and policy value of education insurance by taking into account the child's life chances. In this study, used secondary data from the 2011 Indonesian Mortality Table and illustrated data in the form of education fund data. Premium is obtained using the equivalence principle and policy value is obtained using the prospective method. In the calculation of premiums and policy values for education insurance premiums by taking into account the child's life chances, modifications are made, the amount of education funds multiplied by the child's life chances. The results given in this study are the amount of education insurance premium by taking into account the child's life chances is Rp 6.946.456,00. Policy value increases during the disbursement of education funds and decreases at the end of coverage.

scholarly journals THE CONTRIBUTION OF GOVERNMENT SPONSORED HEALTH INSURANCE SCHEMES TOWARDS INDIAN HEALTH SECTOR

2021 ◽  
pp. 165-171
Author(s):  
Dr.V.Pugazhenthi
Keyword(s):  
Health Insurance ◽  
Health Sector ◽  
Insurance Premium ◽  
Insurance Companies ◽  
Export Credit ◽  
Insurance Sector ◽  
Indian Health ◽  
Health Insurance Premiums ◽  
The Government ◽  
Health Insurers

Today, there are thirty four general insurance companies including the Export Credit Guarantee Corporation of India Ltd (ECGC) and Agriculture Insurance Corporation (AIC) of India and 24 life insurance companies operating in the country. Barring the AIC and ECGC, all other 32 insurers transact health insurance business, of whom six are stand-alone health insurers. Although there are number of insurers and different types of health insurance products available in the market, three-fourth health-insured Indians still gets covered only by a government-sponsored health insurance scheme (GSHIS) like PMJAY. Of all the health insurance premiums underwritten in the year 2019-20, 10 per cent came only from the GSHIS. In terms of number of persons covered, 73 per cent health-insured people are governed by one or other GSHIS. Looking at the profitability of the health insurer also, the incurred claims ratio is just 97.22 per cent in GSHISs. Thus, the health insurance premium, penetration and profitability—all of these are significantly sponsored and subsidized by the government through GSHIS, incorporating the public–private partnership (PPP) mode. This article details the role of GSHIS in the health insurance segment, taking the performances of the Indian health insurance sector in the year 2019-20. KEYWORDS: Government sponsored health insurance schemes, health insurance, health premium, incurred claims ratio, insurance, insurance regulatory and development authority, standalone health insurers.

The Effect of Investments and Risk Based Capital (RBC) of Tabarru Funds on Company (Case Study of Sharia Insurance in Indonesia for 2014-2019)

2020 ◽  
Vol 8 (1) ◽  
pp. 87-97
Author(s):  
Nana Diana ◽  
Tati Apriani
Keyword(s):  
Life Insurance ◽  
Statistical Tests ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Insurance Companies ◽  
Coefficient Of Determination ◽  
Verification Method ◽  
Investment Returns ◽  
The Government

This study aims to examine the influence of investment returns and Risk Based Capital (RBC) Tabarru Funds to the profit of sharia life insurance in Indonesia from 2014-2019. This study The type of this research is quantitative research with descriptive verification as a method. This research method uses descriptive verification method with quantitative approach. The data used in this study were sourced from the financial statements of Islamic life insurance companies in Indonesia for the 2014-2019 period. Then the data obtained were analyzed using multiple linear regression analysis and hypothesis testing consisting of t test and f test with the help of SPSS 21 software. The sampling technique uses non probability sampling with purposive sampling technique. Based on the results of the study it can be seen that the development of investment returns on Sharia Life Insurance in Indonesia has fluctuated and even suffered losses. While the development of Risk Based Capital (RBC) has increased and decreased but overall above 120% as determined by the government. Likewise, the profits earned in each year fluctuate. The results of statistical tests show that investment results partially have a positive effect on profit and Risk Based Capital (RBC) of Tabarru funds partially has a negative effect on profit. Simultaneously investment return and Risk Based Capital (RBC) affect on profit. In addition, the results of the coefficient of determination (R2) were obtained which obtained a value of 81%. This shows that the variable investment returns and Risk Based Capital (RBC) can affect earnings by 81% and the remaining 19% is influenced by other variables not used in this study.

scholarly journals Drunk Drivers’ Willingness to Use and to Pay for Designated Drivers

2021 ◽  
Vol 13 (10) ◽  
pp. 5362
Author(s):  
Rong-Chang Jou ◽  
Li-Wun Syu
Keyword(s):  
Traffic Safety ◽  
Family Background ◽  
Drunk Driving ◽  
Motor Vehicles ◽  
Drinking Habits ◽  
Car Accidents ◽  
Drunk Drivers ◽  
Double Hurdle ◽  
The Government ◽  
Willingness To Use

While drunk driving accidents, which are a serious problem in Taiwan, have decreased in recent years, cases of drunk driving continue to emerge endlessly, and are a source of traffic risks even when the accidents cause no injuries. In order to prevent drunk driving and reduce car accidents, the government has made laws stricter, and has vigorously promoted “designated drivers”. As the concept of designated drivers is not common in Taiwan, this study mainly explores drunk drivers’ understanding of designated drivers in Nantou County and Taichung City, and investigates the willingness of drunk drivers to use and to pay for designated driving services. This study conducted a questionnaire survey on the drunk drivers of the drunk driving and traffic safety training course held at the Motor Vehicles Office. Double-hurdle and tobit models were applied to investigate the issues mentioned above. According to the test results, the tobit model was superior to the double-hurdle model. The estimation results indicated that distance, age, income, family conditions, and drinking habits influence the willingness to use and to pay for designated drivers. Gender, age, family background, and experience in designated driving cause differences in the willingness to use designated drivers in the two regions. It is expected that the conclusion of this study could provide a direction and reference for the future improvement of designated driving services.

scholarly journals Current situation and perspectives of ready-to-eat food/meal suppliers

2020 ◽  
Vol 78 (Supplement_3) ◽  
pp. 27-30
Author(s):  
Takashi Sakata ◽  
Keyword(s):  
Healthy Eating ◽  
Salt Content ◽  
Life Sciences ◽  
Healthy Food ◽  
Management Policy ◽  
Whole Grain ◽  
Research Committee ◽  
Dietary Reference Intakes ◽  
Group 2 ◽  
The Government

Abstract Working Group 2 of the Healthy Diet Research Committee of International Life Sciences Institute Japan (WG2) assessed the concept and practice of healthy eating in the ready-to-eat food/meal industry in Japan. WG2 interviewed 14 arbitrarily selected member companies that included “health” or “nutrition” in their management policy, and sent a questionnaire to 338 member companies of the Japan Ready-Made Meal Association. Ready-to-eat food/meal suppliers mainly referred to Dietary Reference Intakes for Japanese, the Japanese Food Guide, and/or Healthy Japan 21 for their menu construction. They increased dietary fiber, variety, vegetables, whole-grain cereals, millet rice, and soy bean products; and reduced energy, carbohydrates, and salt in “healthy” food. They tended to avoid making direct appeals to health. Many companies reduced the salt content without drawing attention to the practice. They continually strive to improve flavor as the single most important factor for selling healthy food. The cycling of menus is used to increase diversity in food consumption. These industries require both academia and the government to define priorities for increasing and decreasing particular nutrients as the main targets and to establish the maximum time for balancing each nutrient.

scholarly journals Farmers’ Demand for Informal Risk Management Strategy and Weather Index Insurance: Evidence from China

2021 ◽  
Author(s):  
Yingmei Tang ◽  
Huifang Cai ◽  
Rongmao Liu
Keyword(s):  
Risk Management ◽  
Field Experiments ◽  
Management Strategies ◽  
Insurance Companies ◽  
Index Insurance ◽  
Insurance Demand ◽  
Weather Index ◽  
Weather Index Insurance ◽  
Risk Management Strategies ◽  
The Government

AbstractIn the absence of formal risk management strategies, agricultural production in China is highly vulnerable to climate change. In this study, field experiments were conducted with 344 households in Heilongjiang (Northeast China) and Jiangsu (East China) Provinces. Probit and logistic models and independent sample T-test were used to explore farmers’ demand for weather index insurance, in contrast to informal risk management strategies, and the main factors that affect demand. The results show that the farmers prefer weather index insurance to informal risk management strategies, and farmers’ characteristics have significant impacts on their adoption of risk management strategies. The variables non-agricultural labor ratio, farmers’ risk perception, education, and agricultural insurance purchase experience significantly affect farmers’ weather index insurance demand. The regression results show that the farmers’ weather index insurance demand and the influencing factors in the two provinces are different. Farmers in Heilongjiang Province have a higher participation rate than those in Jiangsu Province. The government should conduct more weather index insurance pilot programs to help farmers understand the mechanism, and insurance companies should provide more types of weather index insurance to meet farmers’ diversified needs.

Yakut Governor Ivan Kraft and His Contribution to the Construction of the Amur-Yakutsk Highway at the Beginning of the 20th Century

2021 ◽  
pp. 94-97
Author(s):  
Lev M. Dameshek ◽  
◽  
Margarita D. Kushnareva ◽  
Keyword(s):  
20Th Century ◽  
Russian Federation ◽  
Interdisciplinary Approach ◽  
Research Problem ◽  
Strategic Decision ◽  
Asia Pacific ◽  
East Siberia ◽  
North East ◽  
The Russian Federation ◽  
The Government

The article considers the activities of Ivan Kraft, the governor of Yakutsk Oblast, on the incorporation of North-East Siberia into the single economic, administrative and sociocultural space of the Russian Empire. The aim of the study is to analyze Kraft's contribution to the construction and arrangement of the Amur-Yakutsk Highway at the beginning of the 20th century. To reach this aim, the authors broadly use archival sources that have not been previously published and introduced into academic discourse. The topic has theoretical and applied relevance. It has not been sufficiently studied in the historiography of North-East Siberia and is the subject of scholarly and political discussions. The key method in the study is an interdisciplinary approach to the research problem, which is at the intersection of history and economics. The authors used content analysis for a quantitative and qualitative study of these sources based on the principle of historicism and consistency. The authors determined that, in connection with the design of the Amur Railway, the Amur-Yakutsk Highway received the status of a strategic infrastructure object in the macroregion. The authors note that Kraft was the initiator of the construction of the route from Yakutsk to the Amur. The governor conducted a number of scientific and engineering surveys of the most convenient route and made applications for financing the construction of the highway. Kraft made a strategic decision to attract private companies with large capital for the construction. The Upper Amur Gold Mining Company and the Heirs of A. I. Gromova company helped build highway sections with a total length of more than 500 km, equip stations, establish telegraph communications, and construct river crossings. At the beginning of the 20th century, in the framework of modernization measures, Kraft considered Yakutsk Oblast as a mining region. This became the basis for raising the question of Yakutia's access to the Trans-Siberian Railway. The close cooperation of the government, in the person of Kraft, with large enterprises of the region was the basis for the project of constructing a railway line to Yakutsk. In conclusion, the authors note that the processes of incorporation of the Asian borderlands of Russia into the economic, administrative and sociocultural space of the state that Governor of Yakutsk Oblast Ivan Kraft began at the beginning of the 20th century were reflected in the modern policy of the Russian Federation. The Amur-Yakutsk Mainline was put into operation in 2015. At present, the problem of building a bridge across the Lena in the Yakutsk area is still relevant. In 2019, President of the Russian Federation Vladimir Putin signed orders to begin the construction of the bridge. This will create an international transit corridor between Europe and the Asia-Pacific region.

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