Author: Yashee Kesaria
MMS-Roll no. 0222026
Kohinoor Business School
Panel Predictability Analysis
Devpura, et al (2023) states that Chinese insurance firm’s stock excess returns during COVID-19 Pandemic. It was proxied using 3 major indices i.e. stringency index, containment and health indices. The monthly data was taken from January 2020 to September 2020 of 64 insurance firms. They adopted only seven firm observation by using panel predictability approach model which was proposed by Westerlund and Sharma instead of a time series model. The various financial indicators were considered which were taken from International monetary fund. This panel predictability framework were accommodated by cross-sectional correlated and cross sectional invariant predictors. Hence, the COVID-19 does not impact the Chinese insurance firms on excess returns.
Ethics in Insurance Industry
Vijukumar, et al (2019) states that ethics is most common term which is used in each and every business. Insurance firms is regulated by Insurance Regulatory Development Authority (IRDA) in India. This research focuses on unethical behaviour conducted by insurance companies towards consumer. The main insurance sector which is affected i.e. life insurance sector and general insurance sector. The insurance companies should follow the guidelines stated by IRDA which would help consumers to invest in insurance and have faith that there claim would be settled.
Efficiency evaluation
Garg, et al(2020) states that this research was conducted to evaluate the efficiency of 12 insurance companies which was studied for a period of 12 years. Efficiency among the Indian insurance sector is determined to evaluate the productivity and performance of insurers for both public and private companies. Various parametric and non-parametric model were adopted to measure the efficiency of the companies. Furthermore, several efficiency were assumed to compare between public and private insurance companies. Thus, private companies have gain good opportunity than public companies.
Life insurance trust.
Parrish, et al (2019) states that irrevocable life insurance trust is created to ensure the benefits of insurance policy which helps to avoid the estate taxes and follow the interests of insured. It is important to note that the process of removing the ILIT as the default trust planning may have specific legal and tax implications that require the assistance of qualified professionals such as financial advisors. It can provide guidance based on the client unique satisfaction.
Business diversification
Regele, et al(2020) states that business diversification in insurance business can help insurance companies to reduce their risks and gain profits. In this paper, the macro prudential concept was introduced by various authorities to identify the diversified monoline insurers and undiversified insurers. Since, the systematic risk can be reduced by spreading risks in overall market and types of policy. As, diversification in any business would lead to risk but companies should ensure that at the same time they must gain profits.
Comprehensive evidence from China
Wang, et al (2021) states that marketization has increased competition in China which has helped customers to expand their choices in insurance products and understand about market dynamics. In this research paper, revenue maximization strategy was adopted for small insurers which incurred to operation loss but for large insurers it was incurred to operation profit because of their market power and operational efficiency in nash equilibrium. In conclusion, market liberalization, increased competition and insurance pricing have led to greater transparency, risk and affordability for Chinese insurance market.
Types of insurance
Lin, et al (2021) states that high interest rates would protect policyholders but decreases insurer survival. At the same time, investing in shadow insurance policy or borrowing firm capital help policyholder or insurer to protect their financial stability. This research paper has adopted valuation model to help investors, insurers and regulators to know the financial value of the company. The borrower insurance, shadow insurance and life insurance performer should ensure the risk taking behaviour of insurer.
Evidence from emerging markets
Chang, et al (2022) states that this research paper has the two contents which specifies about household savings rate, interest rate spread and bank capital which has an impact of market discipline on banks risk taking. It has also find a non-linear U-shaped relationships through the sample of 50 emerging markets. Hence, the efforts must be made to understand about the deposit insurance schemes in emerging markets.
Challenges for life insurance
Filabi, et al (2021) states that artificial intelligence has the strength to alter life insurance underwriting, it also brings new risks that the insurance industry must be directed. It does not violate the personal information of the insurers. The artificial intelligence must be transparent and accurate for those who cannot understand the latest technology as well as the to address the challenges that use of AI is beneficial for all parties involved.
Applications of the internet
Krohm, et al (2023) states that the exploration of the internet was directed in the insurance industry. The insurance industry, insurers and regulators are moving towards the transformation of new changes. In the insurance industry, survey was conducted to reveal the insurance companies and regulators are using technology for the betterment of their operations and to serve their regulators. The use of interest is overall playing an crucial role for enabling greater efficiency and improvement of customer service.
Conclusion
The insurance sector is growing for the betterment of insurers as well as for the expansion in the global economy. The insurance sector includes various products such health insurance, life insurance and general insurance. Digital transformation is growing in insurance industry and expanding in new markets. Overall, the insurance is giving protection and security to individuals and business against various risks.
References
Chang, Yiming;Yu, Xiangyuan;Zhao, Shangmei ; (2022) Which Factors Matter to Deposit Insurance Coverage Limit? Evidence from Emerging Markets. Singapore Economic Review, [s. l.], v. 67, n. 4, p. 1421–1446, 2022. DOI 10.1142/S0217590822500266. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=a771f3e2-dd02-3881-aa76-8a5366e20cac. Acesso em: 12 maio. 2023.
DEVPURA, Neluka, Zhang, Fan (2023) the COVID-19 Pandemic and Chinese Insurance Firms: A Panel Predictability Analysis. Emerging Markets Finance & Trade, [s. l.], v. 59, n. 5, p. 1464–1474, 2023. DOI 10.1080/1540496X.2022.2122709. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=f8cd0601-4c7e-3bad-8aef-8873fec40684. Acesso em: 9 maio. 2023.
Filabi , Azish;Duffy, Sophia (2021) AI-Enabled Underwriting Brings New Challenges for Life Insurance: Policy and Regulatory Considerations. Journal of Insurance Regulation, [s. l.], v. 40, n. 8, p. 1–20, 2021. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=d38cc879-2da9-31c4-994f-2533f5df910a. Acesso em: 12 maio. 2023.
Garg, Mahesh Chand;Garg,(2020) Swati Efficiency Evaluation of Indian General Insurance Companies. IUP Journal of Management Research, [s. l.], v. 19, n. 1, p. 7–26, 2020. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=3de1eecb-ef23-3d60-a27c-710e17f472fe. Acesso em: 10 maio. 2023.
Krohm, Gregory (2023) A survey of insurance industry and regulatory applications on the Internet. Journal of Insurance Regulation, [s. l.], v. 14, n. 4, p. 518, 1996. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=d38f8eee-51de-3da5-98d2-32a25d6a3880. Acesso em: 12 maio. 2023.
Lin, Jyh-Horng;Huang, Fu-Wei;Chang, Chuen-Ping(2021) Borrower capital, shadow insurance, and life insurer performance. Applied Economics Letters, [s. l.], v. 28, n. 7, p. 531–534, 2021. DOI 10.1080/13504851.2020.1761940. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=de27888b-04bd-3e6c-b1a6-2d8569fe6417. Acesso em: 12 maio. 2023.
Parrish, Steve (2019) Removing the Irrevocable Life Insurance Trust as the Default in Estate Planning. Journal of Financial Service Professionals, [s. l.], v. 73, n. 2, p. 32–36, 2019. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=692aa3bb-3fd2-3632-a183-d37f066b4cd2. Acesso em: 10 maio. 2023.
Regele, Fabian (2020) Insurance Business Diversification and Systemic Risk. Journal of Insurance Regulation, [s. l.], p. 1–40, 2022. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=3dfdfec6-6353-31f0-921d-021c8ba0d13c. Acesso em: 12 maio. 2023.
Vijukumar, Varsha; Valarmathi,(2019) B. Ethics in Insurance Industry: Case Analysis. IUP Journal of Financial Risk Management, [s. l.], v. 16, n. 3, p. 62–69, 2019. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=b874ca0e-967d-3928-bf9f-c57f6a1c2b45. Acesso em: 9 maio. 2023.
Wang, Yunpeng;Sun, Jingxin;Chang, Chun-Ping (2021) Marketization, Competition, and Insurance Pricing: The Comprehensive Evidence from China. Emerging Markets Finance & Trade, [s. l.], v. 57, n. 14, p. 3984–4003, 2021. DOI 10.1080/1540496X.2020.1771304. Disponível em: https://discovery.ebsco.com/linkprocessor/plink?id=01d3c8ba-7f3f-31dd-8a9d-70c7a41031b7. Acesso em: 12 maio. 2023.
description for your Article from here.