Search results

Our study explores friction costs in terms of competition and market structure, considering factors such as market share, industry leverage levels, industry hedging levels, number of peers, and the geographic concentration that influences reinsurance purchase in the Property and Casualty insurance industry in China. Financial factors that influence the hedging level are also included. The data are hand collected from 2008 to 2015 from the Chinese Insurance Yearbook. Using panel data analysis techniques, the results are interesting. The capital structure shows a significant negative relationship with the hedging level. Group has a negative relationship with reinsurance purchases. Assets exhibit a negative relationship with hedging levels. The hedging level has a negative relation with the individual hedging level. Insurers have less incentive to hedge because it provides less resource than leverage. The study also robustly investigates the strategic risk management separately by the financial crises.

In this chapter, we applied Data Envelopment Analysis (DEA) to a group of property and casualty insurance companies' data from 2018 to 2020. The calculated relative efficiencies were compared with selected traditionally used financial measures. We conclude that DEA and its relative efficiency calculation provide a consistent measure with selected IRIS ratios. The result and method can be used for situations when multiple ratios and change-based financial metrics provide inconsistent conclusions.

Introduction: The insurance sector provides security to society by pooling resources to manage risks. Insurers’ improved ability to analyse risks by examining vast amounts of granular data has considerably refined this technique. Compiling and analysing the fine data sets is now transformed into the ‘Big Data’ technique. The introduction of big data analytics (BDA) is transforming the insurance industry and the role data plays in insurance.

Purpose: This chapter will attempt to examine the applications and role of big data in the insurance sector and how big data affects the different insurance segments like health insurance, property and casualty, and travel insurance. This chapter will also describe the disruptive impact of big data on the insurance market.

Methodology: Systematic research is carried out by analysing case studies and literature studies, emphasising how BDA is revolutionary for the insurance market. For this purpose, various articles and studies on BDA in the insurance market are selected and studied.

Findings: The execution of big data is continuously increasing in the insurance sector. The performance of big data in the insurance market results in cost reduction, better access to insurance services, and more fraud detection that benefits the customers and stakeholders. Therefore, big data has revolutionised the insurance market and assisted insurers in targeting customers more precisely.

Occasional, highly publicized examples of unethical behavior by executives of major businesses such as the unethical/illegal brokerage and financial reporting practices uncovered recently by New York Attorney General Eliot Spitzer's investigation of the insurance industry may be thought to have arisen from some rather unique set of ethical problems that differ significantly from the ethical dilemmas encountered daily by those working in the business. In reality, they did not. Instead, these highly publicized unethical activities on the part of leading brokerage firms and insurers are shown to be attributable to several of the same key ethical issues identified repeatedly by insurance professionals as presenting the greatest ethical challenges for those working in the insurance industry over the last decade and a half.

Introduction: Blockchain is gaining attention in various industries and sectors. It is described as an emergent technology with immense possibilities similar to how the internet has revolutionised how businesses are currently carried out. Still, various sectors have either not adopted or are in a very nascent stage to adopt blockchain technology in their operations. The current research examines how blockchain can be used in the insurance sector. This industry was chosen as it is extremely relevant in today’s world and directly bears its economy.

Purpose: To determine the current and future path in which the insurance industry is moving about blockchain technology adoption and find synergy between blockchain technology and the insurance business.

Need for study: The insurance industry is highly relevant in today’s world and directly bears the country’s economy. Additionally, blockchain is an emergent technology with immense possibilities similar to how the internet has revolutionised how businesses are done. The current research looks at how blockchain can be used in the insurance business.

Methodology: A systematic literature review was conducted in this study by reviewing literature related to blockchain technology and the insurance sector. Science direct was used as a source of information. For this study, the literature review approach was chosen since it allows us to trace the growth of the subject matter and identify the patterns that have formed through time.

Findings: The study found that the insurance sector has recognised the latent benefits of blockchain technology and has begun to develop its usage in selected cases such as fraud prevention and risk assessment.

Practical implications: The current study can be referred to by academicians, marketers, industry people, and policymakers. The study encourages companies and academicians to further investigate the usage of blockchain in insurance.

Financial assurance rules, also known as financial responsibility or bonding requirements, foster cost internalization by requiring potential polluters to demonstrate the financial resources necessary to compensate for environmental damage that may arise in the future. Accordingly, assurance is an important complement to liability rules, restoration obligations, and other regulatory compliance requirements. The paper reviews the need for assurance, given the prevalence of abandoned environmental obligations, and assesses the implementation of assurance rules in the United States. From the standpoint of both legal effectiveness and economic efficiency, assurance rules can be improved. On the whole, however, cost recovery, deterrence, and enforcement are significantly improved by the presence of existing assurance regulations.