Optimal Effort on Self-Insurance-Cum-Protection: A New Analysis Using Yaari’s Dual Theory

People take different measures to control risks. The measures that can simultaneously reduce loss probability and loss size are called self-insurance-cum-protection. This paper studies self-insurance-cum-protection using Yaari’s dual theory. We analyze the comparative statics of increased risk aversion. Two different sufficient conditions are found in the two-state model, from which an increase in the level of risk aversion will lead to an increase in the level of self-insurance-cum-protection. The first condition is a new result under Yaari’s dual theory and its implication is that the more risk-averse individual is willing to exert greater effort on self-insurance-cum-protection if the probability of loss can be reduced to very small by a less risk-averse individual with optimal effort. The second condition depends on the forms of the self-insurance-cum protection cost and the loss. This condition is the same as that obtained under expected utility in existing literature. Our study therefore assures the robustness this result. We also study comparative statics in the continuous model and find out that the results are analogous to that in the two-state model. In addition, we consider how the availability of market insurance affects the self-insurance-cum-protection level. When the probability of loss is small, the self-insurance-cum-protection and market insurance are substitutes. This means when market insurance is available, people tend to exert less effort on self-insurance-cum-protection.

Tax Concession In Life Insurance In Algeria

The Algerian insurance market remains under-exploited. In 2019, it generated a turnover of 152,148billion DA, of which 14.118MDA (9.27%) in life insurance. The insurance penetration (turnover / GDP) is about 0.68% against 2.14% in Tunisia and 3.88% in Morocco and a world average of 6.09%. Also, about the density (CA / Population), in Algeria, it is about 28 $ / head against 75$/ head in Tunisia and 127$ / head in Morocco and a world average of 682 $ / head. The purpose of this study is to show the impact of the life insurance tax system on the development of the latter. For that, we started by presenting the Algerian market insurance, its organization, its structure, its world ranking, this is to detect the difficulties and weaknesses of the latter, particularly the insurance branch of people and the reasons for his delay. Next, we have presented the efforts made by the public authorities in tax breaks to promote the latter, and the shortcomings related to the application of these measures, of which we have cited the Tunisian example, finally, we tried to give recommendations to better exploit these reliefs.

MODERN TRENDS IN THE DEVELOPMENT OF THE INSURANCE SERVICES MARKET

The article considers the state of the insurance services market of Ukraine at the present stage in the conditions of the worldwide pandemic of COVID-19 and the introduction of the quarantine regime. The dynamics of changes in the number of operating insurance companies (non-life, life) in Ukraine over the past five years has been analyzed. The main indicators of the activity of insurance companies of Ukraine as a whole were investigated and the TOP-10 of insurance companies on gross premiums and payments were presented. The main problems impeding the development of the insurance services market are highlighted. The authors described and showed the main trends in the development of the insurance services market in quarantine conditions. It is determined that the decrease in the number of insurance companies is the result of the regulator's efforts to strengthen the market by eliminating players who do not meet the requirements of solvency and reliability. Keywords: insurance market, insurance service, strategy, innovation, premium.

Features of Supervision in the Insurance Market

The article is devoted to the analysis of financial and legal aspects of insurance supervision. It has been determined that with the development of insurance the extent of state regulation, including supervision of insurance activity, has increased. The paper analyzes prudential insurance supervision and the development of the risk-oriented model of supervision over the largest insurance organizations. According to the results of the research, the author concludes that insurance supervision is an integral part of the effective development of the national insurance market. Insurance supervision is carried out at all stages of activity of the insurance business participants to comply with the statutory requirements concerning insurance and to support effective development of insurance services.

Glass-Box: Explaining AI Decisions With Counterfactual Statements Through Conversation With a Voice-enabled Virtual Assistant

The prevalence of automated decision making, influencing important aspects of our lives -- e.g., school admission, job market, insurance and banking -- has resulted in increasing pressure from society and regulators to make this process more transparent and ensure its explainability, accountability and fairness. We demonstrate a prototype voice-enabled device, called Glass-Box, which users can question to understand automated decisions and identify the underlying model's biases and errors. Our system explains algorithmic predictions with class-contrastive counterfactual statements (e.g., ``Had a number of conditions been different:...the prediction would change...''), which show a difference in a particular scenario that causes an algorithm to ``change its mind''. Such explanations do not require any prior technical knowledge to understand, hence are suitable for a lay audience, who interact with the system in a natural way -- through an interactive dialogue. We demonstrate the capabilities of the device by allowing users to impersonate a loan applicant who can question the system to understand the automated decision that he received.