Law’s Elasticity An Inquiry into the Relation of Law and Power in Finance

Law is a powerful commitment device. By entering into a binding contract, a contracting party can invoke the coercive law enforcement powers of states to compel another party to perform. Many, if not most, contracts are carried out without ever invoking these coercive powers; they operate in the shadow of the law. Less attention has been paid to the flip side of law’s shadow: the possibility of relaxing or suspending the full force of the law, or making law elastic. While this may seem anathema to the “rule of law”, it is not an infrequent occurrence, especially in times of crisis. The elasticity of law should be distinguished from the incompleteness of law, that is, the inherent limitation lawmakers face in trying to anticipate all future contingencies. In this paper I will offer two tales of the American Insurance Group (AIG) to illustrate the elasticity of contracts as well as of law.

STATE OF CONCENTRATION AND MONOPOLIZATION OF THE INSURANCE MARKET OF UKRAINE

The intensity and quality of insurance market development are directly related to the level of competition, concentration and monopolization between insurance companies. Although the insurance market of Ukraine is insignificant in terms of key indicators in comparison with foreign ones, the competitiveness of its insurers is very important to ensure proper insurance protection of policyholders. The article is devoted to the assessment of the processes of concentration and monopolization of the insurance market of Ukraine. The study analyzed the structure of the insurance market by segments, concentration indicators and the Herfindahl-Hirschman index for the market as a whole and for individual types of insurance, gradation of insurance companies by the amount of collected insurance premiums. Based on the assessment, it was determined that the insurance market of Ukraine is generally low concentrated, as well as the sector of risky types of insurance. Among the selected segments of the insurance market, the most concentrated is the CASCO insurance. In the field of health insurance there is a slightly lower level of concentration and monopolization as in the OTSPVVNTZ segment. The market of classical property insurance is the least concentrated. The life insurance segment is characterized by moderate concentration and monopolization. The most powerful insurance companies in the relevant sectors of the insurance market of Ukraine are outlined. Since 2015, the top three leaders of the life insurance market are PJSC “MetLife”, PJSC “Insurance Group TAS” and PJSC “IC UNIСA LIFE”. Virtually unchanged leaders in the field of risk insurance during 2018-2020 were PJSC “IC ARX”, PJSC “IC UNICA” and PJSC “Insurance Group TAS”, which are members of financial groups that include leaders of the life insurance market. In general, the national insurance market is becoming more concentrated, which will be appropriate and accepted benefits while strong market players will not involve their residents, and the state controls these processes.

Improving Aviation Insurance System in Russia

The article is devoted to the study of aviation insurance system in Russia. The novelty is the presentation of aviation insurance as a system of elements. Within the framework of the study, the ranking of insurance companies by indicators of financial stability was carried out on the basis of the methodology proposed by Sberbank. The most stable company is National Insurance Group. An important result is the comparative analysis of aviation industry and aviation insurance industry in the period before and after the COVID-19 pandemic. As a part of the study, the dynamics of passenger traffic was analyzed, and the features of the formation of insurance rates before and after the announcement of the COVID-19 pandemic were revealed. The authors offer recommendations for insurance companies in order to help them overcome the crisis as soon as possible.

Basic characteristics of tontine insurance

Tontine insurance is tied to life insurance. This type of insurance is also a type of mutual insurance. However, we must look at tontines separately, having in mind its origin and goal. Tontine insurance originated in the 17th century and was developed in England and the United States, until the beginning of the 20th century, when it became banned. Tontine insurance at an early stage contained elements of group annuity insurance, group life insurance and lottery. Today, tontine insurance is a type of fund within which policyholders, i.e., members, agree to jointly capitalize, i.e., finance their contributions to the fund and to divide the capitalized assets between those policyholders who reach a certain age and the heirs of the deceased insured. The Act on Insurance of the Republic of Serbia also regulates tontine insurance. The author pays attention to the provisions of EU law in this area.

Analysis of Enterprise Profitability Based on Dupont Analysis Method -Taking China Life Insurance (Group) Company as an Example

Obtaining profits is the main purpose of enterprise development, and profitability is the core indicator for measuring the development status and prospects of enterprises. DuPont analysis method is a comprehensive and effective financial analysis method to evaluate the profitability of enterprises. This article will focus on DuPont analysis method, supplemented by factor analysis method and comparative analysis method to comprehensively analyze the profitability of China Life Insurance Co., Ltd. Analyze the advantages and disadvantages of its profitability, then, give some relevant reasonable suggestions.

Italy

This technical note (TN) provides an update and an assessment of the supervisory framework and practices for the Italian insurance sector since the last assessment concluded in 2013. The mission conducted a target review focusing on the implementation of Solvency II, the financial resilience of insurers, the effectiveness of supervision, and previously identified weaknesses without a full assessment of Italy’s observance with the International Association of Insurance Supervisors (IAIS) Insurance Core Principles (ICPs). Implementation of the European Union (EU) Solvency II Directive in 2016 has significantly strengthened regulation and supervision since the last FSAP, introducing risk-based capital standards, comprehensive insurance group supervision and new requirements on governance, risk management and controls. The supervision of intermediaries has also been strengthened in line with the EU Insurance Distribution Directive in 2018.