The Effect of Premium Revenue, Underwriting Results, Investment Results, and Risk Based Capital on Income in Insurance Company (Study On Corporate Insurance - The Listed on the Indonesia Stock Exchange)

This research is intended to determine how much influence the premium income, underwriting results, investment results, and risk based capital on the profit of insurance companies (a study of insurance companies listed on the Indonesia Stock Exchange). In this study, the technique to collect the form of financial documentation as the data were taken from 11 insurance companies as samples that listed on the Indonesia Stock Exchange in 2017-2019. The multiple linear regression analysis methods use to analyze the data. The results of this study indicate that premium income, underwriting results, investment returns, and Rased Based Capital have a positive and significant effect on profits in insurance companies registered in Indonesia in 2017-2019. It is hoped that insurance companies registered in Indonesia will be able to maintain the value of premium income, underwriting results, and Rased Based Capital in the company, this is so that insurance companies are able to provide more performance for the progress of the company in the future.

ON THE ISSUE OF INCREASING THE FINANCIAL POTENTIAL OF HOUSEHOLDS

Households are full participants in economic relations. Their role is determined primarily by the financial potential, using which, households are able to provide consumption and capital accumulation. There are various approaches to the issue of the content of the concept of "financial potential". The issue of increasing the financial potential of households is no less urgent. The foregoing determines the relevance of the stated research. Its results are presented to the readers in this work. The article is devoted to the substantiation of increasing the financial potential of the household through the use of corporate insurance in practice, primarily in terms of voluntary health insurance. The materials of the article can be useful to companies for the development of social policy. Interest should be sparked by the value of corporate insurance, not only for the company and its employees, but for the economy as a whole.

A Case Study on the Particularities and Sustainability of the Concepts of TQM, Quality Control, and Risk Management in the Corporate Insurance Industry: Loss and the Incidence of Catastrophic Risks

The development of quality control and risk management systems is a priority for any industry and especially for the corporate insurance industry. Defective product and work incidents represent 14% of the total number of insurance claims, serving as the main loss of liability for businesses. According to a Allianz Global Corporate and Specialty press release, the cyber risks and impact of new technologies will have an increasing influence on the landscape of corporate losses in the coming years. Our results from this study conclude that the emerging business risks for the next 3–4 years are as follows: cyber incidents, 48%; new technologies, 30%; and changes in legislations/regulations, 28% (i.e., the present pandemic cause by COVID-19, the Brexit, trade wars, and tariffs etc.).

Regulating Blockchain

This collection provides an in-depth analysis of the intersection between blockchain technology and the law. Covering EU, US, and Asian jurisdictions, it assesses the necessities of and opportunities for the regulation of blockchain technology in a range of key legal fields, such as competition law, securities regulation, corporate, insurance, contract, and data protection law. Instead of postulating the disruptive superiority of distributed ledger technology across potential areas of application, however, the volume offers a nuanced treatment of use cases ranging from early applications in finance to ICOs, alternative dispute resolution platforms, and smart contracts. It takes a distinct techno-social perspective in understanding the legal implications of blockchain technology as a possible new general-purpose technology. The interaction of blockchain technology with the legal system raises key questions concerning governance and government, private order and state authority, and the relationship between different ‘calculative’ spaces for assessing and allocating value. These questions do not only have a long pedigree, they are also acutely relevant to our immediate future. By drawing on technological, political, economic, and legal points of view, the volume shows why blockchain matters for societies, and why the law matters for blockchain.

Entrepreneurs’ behavioural biases, risk misperception and company underinsurance

We analyse the effect of behavioural biases on entrepreneurs’ decisions to insure their firms against different kinds of corporate risks. We use a large sample of 2,295 Italian small and medium enterprises (SMEs), finding that they under-insure themselves. Since SMEs should insure more – in proportion – compared to bigger companies, analysing the reasons for this underinsurance is relevant to improve entrepreneurs’ decisions and help their firms, but also from a policy-making point of view. We link corporate insurance choices with the entrepreneurs’ personal characteristics and behavioral traits as well as with their households’ financial choices. Our methodology uses stepwise regressions to discern which variables are statistically significant. In our results, we find that entrepreneurs not only underinsure their firms but also themselves, thus exposing themselves, their firms and their families to high idiosyncratic risk. We find that these suboptimal decisions are affected by behavioural biases such as overconfidence, over optimism, risk misperceptions, and stubbornness, even though in a not straightforward manner. We measure both the overall effect on the number of insurances underwritten and on the specific type of insurance contract. In general, we find that relatively bigger firms do buy more insurance, and that trust in insurance companies is a key driver to insurance purchasing, as well as the estimated probability of suffering damages in the future. In contrast, entrepreneurs do underwrite fewer insurance contracts if their firms caused or suffered damages in the past, but also if they possess personal insurances, thus treating them as substitutes for firm insurance. Since SMEs represent a very important part not only of the Italian economy but also of the economy of many other countries, analyzing their insurance-related decisions is relevant because understanding the determinants that may lead entrepreneurs to mitigate the risks they face is beneficial not only for them and their firms but also for the economy as a whole.