Legal Regime of Insurance Outsourcing

2019 ◽  
Vol 3 (100) ◽  
pp. 3-17 ◽  
Author(s):  
Beata Mrozowska - Bartkiewicz ◽  
Aldona Wnęk
Keyword(s):  
Management System ◽  
Solvency Ii ◽  
Financial Supervision ◽  
Insurance Company ◽  
Legal Regime ◽  
Insurance Law ◽  
Legal Provisions ◽  
Internal Policy ◽  
Compliance With The Law ◽  
Outsourcing Contracts

Following the Solvency II Directive, the detailed rules for delegating own activities to external providers by insurance and reinsurance undertakings have been introduced into the insurance law regime, including the requirements regarding the contents of agreements under which the outsourced services are provided (outsourcing contracts). As institutions of public trust, insurance undertakings should perform their functions properly and safely for customers. Hence, the requirements for outsourcing certain activities and functions constitute an important element of the insurance company management system. Insurance outsourcing is subject to disclosure obligations, and is supervised by the Polish Financial Supervision Authority (KNF). The article discusses legal provisions specifying the basic outsourcing rules for insurance and reinsurance undertakings, including the principles for the development of internal policy and the fulfillment of disclosure requirements, with special emphasis on the outsourcing of certain activities and functions of the management system. Moreover, it also presents the requirements for outsourcing contracts which are imposed on insurance undertakings both by EU and Polish legislation. An appropriate formulation of the rights and obligations of the parties to the contract should ensure, in particular, both compliance with the law and the effective services supervision. More importantly, the KNF has been authorized to perform inspection activities in respect of entities providing outsourced services.

scholarly journals The impact of lending on bancassurance activity

2019 ◽  
Vol 13 (1) ◽  
pp. 171-181
Author(s):  
Elda Marzai Abliz
Keyword(s):  
Negative Impact ◽  
Distribution Channel ◽  
Solvency Ii ◽  
Capital Requirements ◽  
Financial Supervision ◽  
Insurance Companies ◽  
Insurance Company ◽  
Customer Base ◽  
Premium Income ◽  
The Impact

Abstract Due to financial crisis, and especially because of prudence in lending (retail, micro, and corporate), banks are looking for new sources of income, and bancasurance is clearly a potential source of revenue. Thus, in the financial market, the interests of two major components of it are met: banks maximize commission income, and insurers make access to the large customer base of banks. Bancassurance is a distribution channel of insurance products through bank branches, bringing important advantages for banks, insurance companies and customers. The main advantage for the bank is that earns fee amount from the insurance company, the insurance company increases customers data base and market share, the client satisfy his financial needs and requests in the same institution. Considering that in Romania, banks and insurers do not provide information on the number of insurances sold via the bancassurance distribution channel, as well as commissions obtained by banks for the insurance sale, to determine the development of bancassurance in Romania, we used the statistical data provided by the National Bank of Romania, on credit growth and data provided by The Financial Supervision Association, on the evolution of gross written premiums. Bancassurance is one of the most important insurance distribution channels, accounting for approximately 36% of the global insurance market, in 2016, Europe’s insurers generated total premium income of €1 189bn and had €10 112bn invested in the economy. Regarding to the risks of bancassurance business for banks and insurers, they mainly concern distinct capital requirements for the banking and insurance systems, which will be covered by the Basel III and Solvency II directives. This paper aims to analyze the influence of credit on the bancassurance activity in the last 5 years in Romania, the economic, political and legal factors that have a negative impact on the development of bancassurance, and also the calculating the correlation coefficient r (Pearson’s coefficient) and his result.

Nabywanie znacznych pakietów akcji krajowych zakładów ubezpieczeń – charakterystyka i analiza prawna

2021 ◽  
Author(s):  
Beata Kozłowska-Chyła ◽  
Paweł Wajda
Keyword(s):  
Financial Supervision ◽  
Insurance Company

This paper is an attempt to solve problems which may arise – and in practice they do – in the course of proceedings conducted by the Polish Financial Supervision Authority (KNF) concerning the expression of its position on the acquisition of a qualifying holding in a domestic insurance company (i.e. in fact, the analysis of the institution objecting to the acquisition of a qualifying holding in a domestic insurance company, referred to in Articles 82–98 of the Act of 15 September 2015 on insurance and reinsurance activities).

Perlindungan Hukum Terhadap Pemegang Polis Asuransi Jiwa

2020 ◽  
Vol 2 (1) ◽  
pp. 105-113
Author(s):  
Agus Wasita
Keyword(s):  
Law Enforcement ◽  
Financial Stability ◽  
Research Literature ◽  
Insurance Companies ◽  
Insurance Company ◽  
Legal Research ◽  
Insurance Claim ◽  
Insurance Law ◽  
Lack Of Information ◽  
Time And Energy

Most of family in Indonesia do not have insurance to reserve enough fund that will provide financial stability to protect themself and their families . As a consequence, in the event of accident, family will go bankrupt because they take short cut sells all asset to overcome accident that happened. Base survey of some insurance companies, as high as 86 percents of our society are not yet have protected insurance because of misperception, l a large part of people not feel require insurance . Despite that, lack of understanding makes society have in mind that insurance as burden and viewed as expensive product that bring less benefit for them. Other Constraint is lack of information for insurance client in course of claim to get its rights . insurance claim process frequently become animus process between insurance client and insurance company even sometimes their dispute possibility continues become lawsuit which is wasting time and energy for both of them . Lack of understanding to insurance law makes society sometimes use the wrong ways to solve their insurance lawsuit. This research intention to returns the society perception to the correct ways.This research is part of the legal research literature by examining the library materials or the so-called normative legal research.The results showed that the country has made political efforts to protect the legal right of citizens with regard to insurance, but indeed such cases other law enforcement efforts is still a chore government never resolved.

OSIGURANjE ŽIVOTA U KORIST TREĆIH LICA

2021 ◽  
pp. 535-551
Author(s):  
Zoran Miladinović ◽  
Keyword(s):  
Life Insurance ◽  
Legal Status ◽  
Insurance Contract ◽  
Third Party ◽  
Insurance Companies ◽  
Insurance Law ◽  
Legal Provisions ◽  
Insured Person ◽  
Insured Event

Insurance of life in favor of third parties is more important than the insurance of life in case of death. Moreover, in some rights this type of insurance can be contracted only in the event of the death of the insured person. There are no such restrictions in our insurance law, which means that the same can be agreed in case the isured person reaches a certain age. With this type of insurance, the insured event can be realized on the person of the insurance policyholders or on some other person. The insured person can therefore be the insurance contractor himself and it can also be another person. Considering that in this type of insurance, upon the occurrence of the insured event, the payment of the insured amount is always made to a certain third party beneficiary and that the insurance contract mentions several persons with different legal status, the insurance contract must clearly define the issues such as clear determination of the beneficiary insurance, what happens if the insurance beneficiary dies before the insured person, or the contractor assures, whether it is necessary for the insurance beneficiary to give his consent to be paid compensation, whether and until when the insurance policyholder can revoke the benefit he has contracted for a third party-beneficiary of the insured, etc. All these issues are mainly regulated by legal provisions, but of particular importance are General Conditions of life insurance of life insurance companies, as the above issues are clearly defined on the basis of experiences that have proven to be open in practice.

scholarly journals RISK CONTROL CLAUSES IN INSURANCE LAW: LAW REFORM AND THE FUTURE

2016 ◽  
Vol 75 (1) ◽  
pp. 109-127
Author(s):  
Baris Soyer
Keyword(s):  
Risk Assessment ◽  
Critical Analysis ◽  
Risk Control ◽  
Risk Prevention ◽  
Law Reform ◽  
Legal Regime ◽  
Insurance Law ◽  
Insurance Contracts ◽  
Potential Impact ◽  
Risk Assessment And Management

AbstractRisk control clauses are often used in insurance contracts with a view to preventing the assured from altering the risk during the currency of the policy. An insurance warranty is the most commonly used risk prevention clause in practice. Having been subjected to severe criticisms for years, the legal regime concerning insurance warranties and other risk control clauses has recently been revamped by the Insurance Act 2015, which will apply to all contracts of insurance concluded after 12 August 2016. This article intends to elaborate on the appropriateness of the reforms introduced by the 2015 Act from risk assessment and management perspectives. It is also intended to offer a critical analysis on the potential impact of the changes on insurance law and practice.

scholarly journals TONUITY: A NOVEL INDIVIDUAL-ORIENTED RETIREMENT PLAN

2018 ◽  
Vol 49 (1) ◽  
pp. 5-30 ◽  
Author(s):  
An Chen ◽  
Peter Hieber ◽  
Jakob K. Klein
Keyword(s):  
Risk Aversion ◽  
Switching Time ◽  
Extreme Case ◽  
Solvency Ii ◽  
Capital Requirements ◽  
Insurance Companies ◽  
Longevity Risk ◽  
Insurance Company ◽  
Risk Capital ◽  
Medium Risk

AbstractFor insurance companies in Europe, the introduction of Solvency II leads to a tightening of rules for solvency capital provision. In life insurance, this especially affects retirement products that contain a significant portion of longevity risk (e.g., conventional annuities). Insurance companies might react by price increases for those products, and, at the same time, might think of alternatives that shift longevity risk (at least partially) to policyholders. In the extreme case, this leads to so-called tontine products where the insurance company’s role is merely administrative and longevity risk is shared within a pool of policyholders. From the policyholder’s viewpoint, such products are, however, not desirable as they lead to a high uncertainty of retirement income at old ages. In this article, we alternatively suggest a so-called tonuity that combines the appealing features of tontine and conventional annuity. Until some fixed age (the switching time), a tonuity’s payoff is tontine-like, afterwards the policyholder receives a secure payment of a (deferred) annuity. A tonuity is attractive for both the retiree (who benefits from a secure income at old ages) and the insurance company (whose capital requirements are reduced compared to conventional annuities). The tonuity is a possibility to offer tailor-made retirement products: using risk capital charges linked to Solvency II, we show that retirees with very low or very high risk aversion prefer a tontine or conventional annuity, respectively. Retirees with medium risk aversion, however, prefer a tonuity. In a utility-based framework, we therefore determine the optimal tonuity characterized by the critical switching time that maximizes the policyholder’s lifetime utility.

English Worldwide Freezing Orders in Europe

2018 ◽  
Vol 5 (3) ◽  
pp. 250-274
Author(s):  
Pontian N. Okoli
Keyword(s):  
Public Policy ◽  
Member State ◽  
Case Law ◽  
Judicial Discretion ◽  
Mutual Trust ◽  
Legal Certainty ◽  
Legal Regime ◽  
Protective Measures ◽  
Legal Provisions ◽  
Court Of Justice

A judgment creditor who obtains a freezing order in one EU Member State may seek to enforce it in another Member State. When judgment creditors seek to enforce such orders, the judgment debtors may appeal against the enforcement orders. This article examines how protective measures can be guaranteed pending such enforcement appeals under the Brussels legal regime. Relevant legal provisions and the case law of the Court of Justice are considered. There is also an examination of the recent English response to the Brussels legal regime and an argument that the judgment creditor is entitled to protective measures. Drawing support from public policy and mutual trust considerations, this article concludes that exercising judicial discretion in granting protective measures pending appeals undermines legal certainty.

scholarly journals Net-Premium Valuations with reference to the American Insurance Law

1871 ◽  
Vol 16 (5) ◽  
pp. 355-358
Author(s):  
Elizur Wright
Keyword(s):  
New York ◽  
Life Insurance ◽  
General Interest ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Insurance Law ◽  
American Life ◽  
Proper Method

The Insurance Times of New York having reprinted the greater part of Mr. Sprague's paper On the proper method of estimating the liability of a Life Insurance Company under its policies, and Mr. Makeham's letter which appeared in the same number of this Journal, the Hon. Elizur Wright has thought it desirable to explain the aim of the American Insurance Law in a letter to that periodical, from which we make the following extract. We do this not only on account of the general interest with which Mr. Wright's views will be read, but still more because he corrects a misconception as to the object and purpose of the American Life Insurance legislation.—Ed. J. I. A.

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