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Article
Publication date: 29 April 2014

Santanu Mandal and Surajit Ghosh Dastidar

The purpose of this paper is to investigate the efficiency analysis of the Indian general insurance sector using data envelopment analysis (DEA) and subsequently assess…

Abstract

Purpose

The purpose of this paper is to investigate the efficiency analysis of the Indian general insurance sector using data envelopment analysis (DEA) and subsequently assess the impact (if any) of the global slowdown on the performance of the allied sector.

Design/methodology/approach

The paper aims to analyze the operating performance of 12 general insurance companies in India between 2006-2007 and 2009-2010 using DEA based on secondary data collected from Insurance Regulatory and Development Authority Annual Reports.

Findings

Findings clearly indicate that the global economic slowdown has severely affected the performance of the private sector companies; while the public sector companies exhibited relatively lesser variation in performance levels.

Research limitations/implications

The methodology employed in the study estimates relative efficiencies without assuming any functional form; as a result the proper comparison of input utilized with the output produced is not possible. Several other tools like Malmquist Index and two-stage procedure have not been used.

Originality/value

The study brings into light the operating characteristics and efficiencies of the Indian general insurance sector during the global slowdown and therefore holds practical value for policy makers and practitioners as well as for the decision makers of the firms employed in the study.

Details

Journal of Advances in Management Research, vol. 11 no. 1
Type: Research Article
ISSN: 0972-7981

Keywords

Content available
Article
Publication date: 2 December 2020

Madan Mohan Dutta

Health insurance is one of the major contributors of growth of general insurance industry in India. It alone accounts for around 29% of total general insurance premium…

Abstract

Purpose

Health insurance is one of the major contributors of growth of general insurance industry in India. It alone accounts for around 29% of total general insurance premium income earned in India. The growth of this sector is important from the perspective of overall growth of general insurance Industry. At the same time, problems in this sector are also many which are affecting its performance.

Design/methodology/approach

The paper provides an understanding on performance of health insurance sector in India. This study attempts to find out how much claims and commission and management expenses it has to incur to earn certain amount of premium. Methodology used for the study is regression analysis to establish relationship between dependent variable (Profit/Loss) and independent variable (Health Insurance Premium earned).

Findings

Findings of the study indicate that there is significant relationship between earned premium and underwriting loss. There has been increase of premium earnings which instead of increasing profit for the sector in fact has increased underwriting loss over the years. The earnings of the sector is growing at compounded annual growth rate of 27% still it is unable to earn underwriting profit.

Originality/value

This study is self-driven based on secondary data obtained from insurance regulatory and development authority site.

Details

Vilakshan - XIMB Journal of Management, vol. 17 no. 1/2
Type: Research Article
ISSN: 0973-1954

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Article
Publication date: 15 October 2019

Rejikumar G., Raja Sreedharan V. and Raiswa Saha

Consumer behavior, in the context of general insurance, is worth exploring to formulate growth strategies for insurance sector in India in light of the proposed structural…

Abstract

Purpose

Consumer behavior, in the context of general insurance, is worth exploring to formulate growth strategies for insurance sector in India in light of the proposed structural changes. Indian consumers attract global players due to untapped potential and favorable policy measures initiated for higher foreign direct investments. The purpose of this paper is to understand the prevailing level of service quality as perceived by insurance customers in India in the presence of certain contextual antecedents and moderators.

Design/methodology/approach

Perceptions about constructs like customer risk dispositions, awareness, past experiences, customer involvement, choice overload, service quality and satisfaction of 256 customers were collected using a questionnaire survey. A variance-based structural equation modeling helped to identify significant linkages among the constructs.

Findings

In order to assess service quality levels, a 15-item scale having the infrastructure, employees, agents and product dimensions was found valid and reliable. Choice overload and customer involvement were found to moderate the influence of antecedents and service quality, respectively. The influence of choice overload on quality perceptions is insignificant. The study concludes that the existing risk beliefs are insufficient, and experiences have less predictive contribution to quality perceptions.

Research limitations/implications

Theoretically, this study examined the process of satisfaction development from service quality perceptions. This study offers insights for developing theories to portray future consumer behavior where more dependence of self-service technologies is expected to dominate service delivery mechanisms in insurance. The study informs that general insurance customers in India prefer more diversified products, more customer-centric employees/agents and better technical quality.

Practical implications

The findings of this study contribute to the understanding of the prevailing insurance consumer behavior in the general insurance sector of India and help insurance service providers in streamlining their strategies for better insurance penetration and reduced lapse rate.

Originality/value

This study helps in understanding the emerging trends in general insurance buying behavior in India.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 17 May 2013

T. Joji Rao and Krishan K. Pandey

The fact that complaints regarding general insurance claims are three times as numerous as those of life insurance claims suggests that claims behaviour of general

Abstract

Purpose

The fact that complaints regarding general insurance claims are three times as numerous as those of life insurance claims suggests that claims behaviour of general insurers be investigated to minimize operating losses and ensure operational excellence. This paper seeks to address this issue.

Design/methodology/approach

Study of variance and factor analysis has been undertaken to achieve the objective of identifying factors which govern claims in general insurance business. In order to understand the dependency of claims over the sectors and segments, statistical hypothesis testing along with cross tab analysis has been conducted. The study also evaluates the relationship of these factors over the sectors and segments by running a multiple regression.

Findings

An empirical result of the study proves that there exists an association between type of sectors, i.e. public and private and segments of insurance namely fire, marine and miscellaneous. The study also suggests a claim projection model for the general insurance players.

Research limitations/implications

Exclusion of specialized players due to the reason being new entrants and in order to maintain common parlance of sectors may be a limitation to this study.

Originality/value

The study recommends that insurance players should not treat the claims settlement strategies in isolation of segments. The claims projection model as suggested in the study may prove to be extremely helpful in projecting the claims and in turn reduce the increasing underwriting losses.

Details

The Journal of Risk Finance, vol. 14 no. 3
Type: Research Article
ISSN: 1526-5943

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Article
Publication date: 3 April 2018

Shrutikeerti Kaushal and Amlan Ghosh

Understanding the role of financial intermediaries towards financial development and thereby the growth of an economy, this study aims to examine the long-run relationship…

Abstract

Purpose

Understanding the role of financial intermediaries towards financial development and thereby the growth of an economy, this study aims to examine the long-run relationship between the development of banking and insurance sector and economic growth in India by covering different regimes including the regulated and the liberalized period.

Design/methodology/approach

For examining the long-run relationship between these sectors, the study uses VAR-VECM technique. Further, Granger causality test is used to check if there is the presence of any causal link among these sectors.

Findings

The findings clearly indicate long-run relationship between economic growth and the development of banking and insurance sector, while the causality results show demand following relationship in the complete period where there is bi-directional causality in the post-liberalized period from insurance to economic growth.

Research limitations/implications

As banking development is not found to support economic growth, this raises serious concerns towards the complex role of banks as against theory and demands further analysis to understand their role in an economy.

Practical implications

As causality pattern has changed from demand following to bi-directional causality, it is vital to understand the importance of liberalization towards the economic growth of the country as well as the contribution of insurance sector towards economic growth in the liberalized environment.

Originality/value

This is the first effort to empirically explore the relationship between economic growth and the development of banking and insurance sector in India by covering the complete period (regulated and liberalized).

Details

Journal of Financial Economic Policy, vol. 10 no. 1
Type: Research Article
ISSN: 1757-6385

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Article
Publication date: 1 March 2013

Sudhir C. Das

The purpose of this study is to examine the extent to which Indian insurance companies have adapted socially responsible reporting practices, HR disclosures and also to…

Abstract

Purpose

The purpose of this study is to examine the extent to which Indian insurance companies have adapted socially responsible reporting practices, HR disclosures and also to identify areas of corporate social reporting and HR disclosures.

Design/methodology/approach

The study adopts longitudinal design and has analyzed qualitative data by using content analysis in 26 insurance companies in India disclosed in annual reports. The paper focuses on annual reports of Indian insurance companies starting from the financial year 2002‐2003 to 2009‐2010, which are analyzed with regard to the nature of their human resource disclosures and social reporting. Finally, a test of legitimacy theory is then conducted.

Findings

The study found that the non‐life insurance companies disclosed significantly less social information than life insurance companies. The study also reveals that public life insurers disclosed significantly more social information than the other life insurance companies. On the other hand, a paired difference t‐test shows private general insurance companies disclose more social information as the difference significant.

Research limitations/implications

The study has ignored longitudinal variations and the sample organizations comprised 26 government and private insurance organizations, restricting generalizations to the companies examined in the study.

Practical implications

The study recommends that a checklist of disclosures should be developed jointly by the Insurance Regulatory and Development Authority (IRDA), the Institute of Chartered Accountants of India (ICAI), and the Securities and Exchange Board of India (SEBI).

Originality/value

The study, while providing valuable insights, highlights the dearth of research of corporate social reporting in emerging economies and opens up many avenues for further research.

Details

Social Responsibility Journal, vol. 9 no. 1
Type: Research Article
ISSN: 1747-1117

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Article
Publication date: 1 October 2003

Atmanand

Key elements of disaster management are prevention, mitigation, preparedness, response and relief, rehabilitation. The various stakeholders in the process of disaster…

Abstract

Key elements of disaster management are prevention, mitigation, preparedness, response and relief, rehabilitation. The various stakeholders in the process of disaster mitigation are policy makers, decision makers, administration, professionals, professional institutions, R&D institutions, financial institutions, insurance sector, community, NGOs and the common man. Insurance has played a very important role. The advanced countries have developed the insurance system and made it effective and mandatory – as a result the loss of lives and property is comparatively less. In India, most of the losses suffered in natural disasters are not insured, for reasons such as lack of purchasing power, lack of interest in insurance, theory of karma attitude and ignorance of availability of such covers. Quite large numbers of agencies provide the insurance cover and foreign insurance companies have already ventured in such areas. This implies that the commercial and private sector can also play an essential role in disaster mitigation. The present study attempts to fill the gap in studies on the role of the insurance sector in disaster management.

Details

Disaster Prevention and Management: An International Journal, vol. 12 no. 4
Type: Research Article
ISSN: 0965-3562

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Article
Publication date: 11 January 2013

Amlan Ghosh

The role of financial institutions and financial intermediaries in fostering the economic growth by improving the efficiency of capital accumulation, encouraging savings…

Abstract

Purpose

The role of financial institutions and financial intermediaries in fostering the economic growth by improving the efficiency of capital accumulation, encouraging savings and ultimately improving the productivity of the economy has been well accepted by now. Recent studies show that the insurance industry can improve the economic growth through financial intermediation, risk aversion and generating employment. This study aims to find the relationship between life insurance industry and economic development in India.

Design/methodology/approach

The study uses the VAR‐VECM model to find out the long run and short run relationship (if any) between life insurance growth and economic growth along with Granger causality test to suggest any causal relationship.

Findings

This study finds that there is long term relationship between life insurance industry and economic development in India. And the Granger causality test suggests that life insurance sector improves the overall economic development in India and the reverse is not significant.

Research limitations/implications

The only limitation to study the relationship between life insurance sector development and economic development is the data set which has been used is annual data as the quarterly data were not available for insurance industry.

Practical implications

The study documented the long run relationship between life insurance industry and economic development in India and finds that the life insurance sector improves the overall economic development in India. This would help us to understand the implications of the life insurance market development in the post reform era.

Originality/value

There is a dearth of literature on the Indian economy in relation to the insurance sector, specifically the life insurance sector. This is the first attempt to study the impact of life insurance development on Indian economy after the reforms initiated in the insurance sector.

Details

Journal of Asia Business Studies, vol. 7 no. 1
Type: Research Article
ISSN: 1558-7894

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Case study
Publication date: 3 December 2020

Dayashankar Maurya, Amit Kumar Srivastava and Sulagna Mukherjee

The central lesson to be learned from studying the case is to understand the challenges and constraints posed by contextual conditions in designing contracts in…

Abstract

Learning outcomes

The central lesson to be learned from studying the case is to understand the challenges and constraints posed by contextual conditions in designing contracts in public–private partnerships (PPP) for financing and delivering health care in emerging economies such as India.

Case overview/synopsis

Perverse incentives, along with contextual conditions, led to extensive opportunistic behaviors among involved agencies, limiting the effectiveness of otherwise highly regarded innovative design of the program.

Complexity academic level

India’s “Rashtriya Swasthya Bima Yojana” or National Health Insurance Program, launched in 2007 provided free health insurance coverage to protect millions of low-income families from getting pushed into poverty due to catastrophic health-care expenditure. The program was implemented through a PPP using standardized contracts between multiple stakeholders from the public and private sectorinsurance companies, hospitals, intermediaries, the provincial and federal government.

Supplementary materials

Teaching Notes are available for educators only.

Subject code

CSS: 10 Public Sector Management.

Details

Emerald Emerging Markets Case Studies, vol. 10 no. 4
Type: Case Study
ISSN: 2045-0621

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Article
Publication date: 26 January 2021

Biju Mathew and Sunitha Sivaraman

This paper analyses the relationship between financial sector development (FSD) and life insurance inclusion in India during the period from 1971–1972 to 2016–2017. The…

Abstract

Purpose

This paper analyses the relationship between financial sector development (FSD) and life insurance inclusion in India during the period from 1971–1972 to 2016–2017. The study analyses the effect of financial deepening on life insurance inclusion in India.

Design/methodology/approach

The study employs augmented Dickey–Fuller (ADF) unit roots test to check the stationarity properties of the time series data. It estimates a life insurance inclusion model using the auto-regressive distributed lag model (ARDL) bounds testing approach to cointegration.

Findings

The study finds evidence of a cointegrating relationship between financial deepening and life insurance inclusion in India. A significant error correction coefficient indicates automatic adjustments to short-run disequilibrium, reinforcing the cointegrating relationship between financial sector and life insurance inclusion.

Research limitations/implications

A major limitation of the study is that it excludes the first-time sum assured (FSA) contributed by the private sector life insurance companies due to lack of data availability.

Practical implications

The results of the study call for faster expansion of the financial sector and provision of a low interest rate regime in the Indian economy. The study invokes the need for sufficient training to the personnel in the banking and non-banking institutions to cater to the complex needs of life insurance buyers.

Originality/value

The paper estimates the link between FSD and life insurance inclusion and introduces a new measure of life insurance demand, the life insurance inclusion, measured using the FSA.

Details

International Journal of Social Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0306-8293

Keywords

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