An Analytical Study of Ship Hull Insurance in the Liquidity and Profitability of the National Insurance Company

The sea is of paramount importance in the life of man and peoples. Since ancient times, it has represented a tool for communication between nations, a link for civilizational meeting between them, and a source of sustenance. Man’s need and interest in exploiting this wealth moves his curiosity and ambitions to think and search for means that contribute and help in expanding the scope of maritime exploitation and consolidating relations between countries more and more. The maritime field was among the important areas touched by industrial and technological development, especially in the field of maritime transport, which led to the emergence of giant ships capable of embarking on sea voyages and thus moving foreign trade in a positive way. The aim of the research is to know the extent to which ship hull insurance is related to the liquidity and profitability of the National Insurance Company, and where the main research problem is manifested in the extent to which ship hull insurance is linked to the liquidity and profitability of the National Insurance Company. Only the research relied on the questionnaire as a tool for all data and information from the sample of 64 and those who have responsibility are (General Director, Department Director, Division Officer, Unit Officer) and the statistical program was used spss 21 in the calculation standard deviation, simple linear regression, testF ) R² (. The conclusions reached by the research are the evaluation of the degree of risk surrounding the ship and the evaluation of the degree of classification in the classification record is based on which the insurance price for the structures of marine vessels is determined, which shows that the degree of risk varies up and down according to the type of ship, origin, shipping lines, and the experience of the crew and the master. The results of the study also showed the existence of a strong correlation between the liquidity variable and profitability in the respondents' response to the research sample in the National Insurance Company, as there is no profitability without the presence of liquidity and good liquidity expresses the company's ability to meet the payment of its obligations. (*) An extracted thesis, which is part of the requirements for obtaining a higher diploma equivalent to a master’s degree. There are also a number of recommendations, including; Adoption of a unified plan for all insurance branches. To measure the liquidity risk in order to ensure that the company is protected from bankruptcy or its exit from the insurance market in the event of a financial crisis again.

Autonomous vehicles - a certain future, uncertain costs and benefits

Autonomous vehicles are the concept which is being developed and which will certainly enter the market in the following decades. It is assumed that these technologies would improve road exploitation parameters and reduce consumers’ costs - both operating and time - related costs. Reduction in fuel consumption and insurance price, higher purchase price are only some of costs which could occur. The purpose of this paper is to present a few international research projects on autonomous vehicles costs.

ON THE OPTIMALITY OF A STRAIGHT DEDUCTIBLE UNDER BELIEF HETEROGENEITY

This article attempts to extend Arrow’s theorem of the deductible to the case of belief heterogeneity, which allows the insured and the insurer to have different beliefs about the distribution of the underlying loss. Like Huberman et al. [(1983) Bell Journal of Economics14(2), 415–426], we preclude ex post moral hazard by asking both parties in the insurance contract to pay more for a larger realization of the loss. It is shown that, ceteris paribus, full insurance above a constant deductible is always optimal for any chosen utility function of a risk-averse insured if and only if the insurer appears more optimistic about the conditional loss given non-zero loss than the insured in the sense of monotone hazard rate order. We derive the optimal deductible level explicitly and then examine how it is affected by the changes of the insured’s risk aversion, the insurance price and the degree of belief heterogeneity.

Workers’ compensation insurance prices: evidence from Portugal

Purpose The purpose of this paper is to analyse the determinants of workers’ compensation insurance prices in Portugal. Design/methodology/approach Multiple regression analysis was used to study the insurance price determinants. The independent variables considered are: payroll, number of employees, and incidence rate. In addition, three categorical variables were used: region, classification of economic activities, and enterprise size. A cross-firm panel data sample from the SABI database of 1,435 firms was considered, over a time horizon from 2010 to 2012. Furthermore, the sample split criterion was the enterprise size. Findings As expected, the results suggest that payroll and number of employees are related with workers’ compensation insurance prices. Furthermore, incidence rate, region, type of economic activities, and enterprise size have a positive and significant influence on premiums. Research limitations/implications More panel data are needed to allow a greater focus on the impacts of GDP fluctuations and sectoral consolidation on insurance pricing. Further research could also include the impact of capital/reserving cycles, which can be driven both by economic shocks and the competition cycle. It is well known that insurers tend to reduce reserving standards when under pressure, and this can result in inadequate pricing. Practical implications The process of workers’ compensation insurance price formation is disentangled. The results suggest that the workers’ compensation insurance premiums behave as expected, especially under periods of economic strain. Therefore, workers’ compensation rate regulation should take this evidence into account, specifically through the establishment of minimum rates, which will protect the insurer, the employer, and the employees alike. Originality/value The paper is part of a considerable literature on insurance pricing in workers’ compensation, most of which has centred on private markets in the USA. This paper is the first empirical work that employs private market data for Portugal.

Public Health Insurance with Monopolistically Competitive Providers and Optional Spot Sales

We study the implications of extending public-insurance coverage over differentiated medical products of the same therapeutic group to market outcomes. The public insurer can set the reimbursement level for medical providers and the copayment for the insured for medical care provided under the policy coverage, but cannot directly control providers’ spot sales (outside of insurance) price. In this setup, the price offered by the public insurer to medical providers must maintain their reservation profit from selling on the spot market directly to consumers. We show that the public insurer can manipulate this reservation profit by setting the copayment rate, and thereby promote market welfare while increasing consumers’ surplus due to lower medical prices and lower market entry. The results survive generalizations including moral hazard and incomplete insurance coverage.