Paper Title: A Study on the Impact of Merger Policy and Regulation: Minimum Capital
Require ment and Its Effect on Life Insurance Industry
Author (s) : James C. Hao, Lin-Yhi Chou
Abstract
The purpose of this study is to discuss the impact of merger and regulation regarding minium capital requirement and its effect on Life Insurance Industry. We find some fair conclusions: first, the impact of a merger policy on stockholders’ wealth is not significant. Second, we find that stockholders have a negative outlook on (relation to) the increase of cost inefficiency (increasing). Third, the insurance firms’ stockholders don’t benefit from strict capital, because this regulation will diminish their wealth. Some firms will respond to this regulation with a larger scale of operation. Finally, we do find that firms’ scale to operations have a positive relation with market share.
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Paper Title: Batch Arrival of Claims in the Classical Risk Model
Author (S) : K. K. Thampi, M. J. Jacob, N. Raju
Abstract
In this paper, the classical risk model with batch arrival of claims is considered. There are situations (as in the case of fire/automobile insurance) where a single company is holding a large number of policies in that area, one has to take into account the possibility of many claims arising out of the same incident. We assume that there are a random number of claims at a claim point. In this case knowledge of the probability distribution of the single claim size and time between two claim events leads to the study of batch arrival of claims. We have obtained expressions for finite time ruin/survival probabilities under the classical risk model using Laplace transform method (S.Asmussen: 2000). The Laplace inversion is done by using Heaviside’s theorem and complex inversion. We have also computed survival probabilities when the batch size is either a Geometric distribution or a Bernoulli’s distribution.
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Paper Title: Comparing Traditional Life INSURANCE PRODUCTS in the Indian Market:
A Consumer Perspective
Author (s) : R. Rajagopalan
Abstract
Life insurance policies are valuable assets to mitigate the financial risk of untimely death. As such, every individual facing such a financial risk who can afford to pay for such a protection must seriously consider purchasing some life insurance. In the current Indian market, this choice is difficult on three counts: Inherent complexity due to uncertainty and long time horizons, The need to compare a plethora of different types of products from competing insurance companies, Most insurance policies bundle pure insurance with savings to offer composite products.
This paper is an attempt at a comparative evaluation of the traditional insurance policies available in the Indian market from a consumer perspective.
I use an expected present value approach, data on mortality rates, currently prevailing premiums on insurance policies and interest rates- for the comparison within and across policy types.
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Paper Title: The Focus of Life Insurance: Risk Protection or Investment—Evidence from
the Empirical Study on the Demand of the Life Insurance in China, An
Emerging Market
Author (s) : Yu Zheng
Abstract
This paper evaluates the situation of the risk protection market, compares the demand for risk protection with the demand for investment, compares emerging markets with industrialized countries’ markets, and measures the degree and qualities of China citizens’ true risk protection. This paper mainly uses the structure changed Cointegration analysis improvement and Error Correction Model (ECM) to carry on the positive analysis, calculates the risk protection gap, and provides some suggestions regarding the target choices and development strategies in the emerging life insurance markets.
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Paper Title: Keyman Insurance: Cover against Loss or Tax?
Author (S) : Lalitha Sreenath, M.R. Sreenath
Abstract
In knowledge-driven industries, the need to indemnify the monetary losses that may accrue on the sudden death or exit of key person in the organization has led to the emergence of new life insurance product – keyman insurance policy. However, with the reduction of the corporate tax liability from 35 to 30% by the Indian Government for the fiscal year 2005 -06, this legitimate risk management tool has been grossly abused in Mar. 2005 for avoidance of tax. Hence this paper attempts to trace the development of this cover and the concepts used in the valuation of this product, the gross abuse of the tax laws by the corporates and the steps needed to rectify the situation.
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Paper Title: Strategic Management In Insurance Industry: An Emprical Evidence
Author (S) : T. Vanniarajan, B. Anbazhagan, C Samuel joseph
Abstract
The new players were successful in creating the mind share of the people through aggressive marketing strategies, namely, campaigns, innovative products and promotional activities. But the critical factor for success in the Indian insurance industry would be ‘appropriate marketing strategy’ to the targeted market segment. Since, India is highly versatile in all aspects, the differentiation is essential among the market players in the insurance market. Hence, this study focuses on the strategies needed in different Indian insurance market segments.
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Paper Title: The Choice of Chinese Non-life Insurance Industry Between Scale and
Efficiency: Empirical Research on Efficiency Under Globalization of Insurance Market
Author (s) : Zhang Hui, Ma LiMiao
Abstract
Since December 11th, 2001, when China became one member of WTO, more and more foreign non-life insurance companies has entered into Chinese market and insurance market of China inclines toward a more extensive internationalization. Under the exterior pressure of the competition, Chinese supervisor deregulates gradually in many areas including business scope, the region restriction and forms of companies. On the other hand, under the vehement competition, Chinese supervisor also put more emphasis upon the market behavior and solvency of insurers. Many foreign and local investors also set foot in the non-life insurance realm. Meanwhile, the aim of Chinese insurance industry is to be stronger and more profitable.
The research period of this paper is from 1996 to 2004. We apply frontier methodology to calculate efficiency scores .The sample comes from 27 insurance companies of the Chinese insurance market. We find the same dispersion in efficiency sores between Chinese local and foreign insurance companies. The main reason for this phenomenon mainly derives from the limitation of scale. Through the analysis of Malmquist Productivity Index, we observe that the performance of Chinese Local companies improved obviously. We also find the changes are not consistent in different companies.
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Paper Title: Takaful Malaysia: Strategic Issues & Challenges in Managing Change (A Case
Study of Islamic Insurance System in Malaysia)
Author (s) : Mohammad Saeed, Kasmah Tajuddin
Abstract
Takaful Malaysia in its quest to maintain its leadership status in the Takaful Industry had made the decision in year 2001 to replace its Information Technology System to improve its support towards operations with the aim of making it more efficient and value-added for its customers. The system is now almost complete ready to be rolled-out soon.
For the past two years since the project had started, it had been quite a journey; arduous, tiring and a very time consuming process, demanding a lot of time and energy from its people and of course money to the organization. Many unanticipated discoveries and realizations were made in its course making it all the more difficult to overcome. The most difficult of them came from its people problem.
It seemed that the decision was not only about to change the information system but also about how to make its people change their way of thinking and in making them accept the new system. To be fully effective, it was realized that the changes must address the intellectual and emotional issues – the hearts and minds – as well as the machines and systems. Dealing with humans we must expect the unexpected. There is no use of having the most impeccable system if the human factor is not addressed because eventually they are the ones who will be the ultimate users.
Through this article, it has been endeavored to analyze the strategic issues and challenges faced by Takaful Malaysia especially from the standpoints of human forces that can either fuel or foil the changes that it wants to bring about.
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Paper Title: Unit Linked Insurance Policies [ULIP] and Risk Management
Author (S) : Padmavathi V
Abstract
Risk Management is the distinctive feature drawing a boundary line between the ancient and modern times. Life Insurance is one of the important tools of risk management, which ensures family financial security.
The present day boom in the Insurance Market in India is primarily due to Unit Linked Insurance Policies. But there is a contrast in the objectives of Life Insurance and Unit Linked Insurance Policies.
This paper evaluates the intricacies involved in selling and buying unit Linked Insurance Policies from risk management perspective and makes relevant suggestions to Sellers, Buyers, Financial Planners and the Regulatory Authority. |
