INSURANCE AND REINSURANCE CONFERENCE

Previously Published Papers on "Insurance and Reinsurance Conference"

• A Comparative Study of Insurance Policies Worldwide in Public Private Partnerships

  Authors: Guanqun Shi, Xueqing Zhang, Keywords: Public-private partnerships, insurance, contract, risk. DOI:10.5281/zenodo.1315416 Abstract: The frequent occurrence of failures in PPP projects which caused great loss has raised attention from the government as well as the concessionaire. PPPs are complex arrangements for its long operation period and multiple players. Many types of risks in PPP projects may cause the project fail. The insurance is an important tool to transfer the risks. Through a comparison and analysis of international government PPP guidelines and contracts as well as the case studies worldwide, we have identified eight main insurance principles, discussed thirteen insurance types in different stages. An overall procedure would be established to improve the practices in PPP projects.

• Consumer Market of Agricultural Products and Agricultural Policy in Georgia

  Authors: G. Erkomaishvili, M. Kobalava, T. Lazariashvili, M. Saghareishvili, Keywords: Agriculture, agricultural cooperative society agricultural insurance, agricultural policy, export-import of agricultural products. DOI:10.5281/zenodo.1132296 Abstract: The article discusses the consumer market of agricultural products and agricultural policy in Georgia. It is noted that development of the strategic areas of the agricultural sector needs a special support. These strategic areas should create the country's major export potential. It is important to develop strategies to access to the international markets, form extensive marketing network etc., which will become the basis for the promotion and revenue growth of the country. The Georgian agricultural sector, with the right state policy and support, can achieve success and gain access to the world market with competitive agricultural products. The paper discusses the current condition of agriculture, export and import of agricultural products and agricultural policy in Georgia. The conducted research concludes the information that there is an increasing demand on the green goods in the world market. Natural and climatic conditions of Georgia give a serious possibility of implementing it. The research presents an agricultural development strategy in Georgia and the findings and based on them recommendations are proposed.

• Consumption Insurance against the Chronic Illness: Evidence from Thailand

  Authors: Yuthapoom Thanakijborisut, Keywords: Consumption insurance, chronic illness, health care, Thailand. DOI:10.5281/zenodo.1127555 Abstract: This paper studies consumption insurance against the chronic illness in Thailand. The study estimates the impact of household consumption in the chronic illness on consumption growth. Chronic illness is the health care costs of a person or a household’s decision in treatment for the long term; the causes and effects of the household’s ability for smooth consumption. The chronic illnesses are measured in health status when at least one member within the household faces the chronic illness. The data used is from the Household Social Economic Panel Survey conducted during 2007 and 2012. The survey collected data from approximately 6,000 households from every province, both inside and outside municipal areas in Thailand. The study estimates the change in household consumption by using an ordinary least squares (OLS) regression model. The result shows that the members within the household facing the chronic illness would reduce the consumption by around 4%. This case indicates that consumption insurance in Thailand is quite sufficient against chronic illness.

• Analysis of Factors Used by Farmers to Manage Risk: A Case Study on Italian Farms

  Authors: A. Pontrandolfi, G. Enjolras, F. Capitanio, Keywords: Agriculture and climate change, climatic risk management, insurance schemes. DOI:10.5281/zenodo.1125857 Abstract: The study analyses the strategies Italian farmers use to cope with the risks that face their production. We specifically explore the potential and the limitations of the economic tools for climatic risk management in agriculture of the Common Agricultural Policy 2014-2020, that foresees contributions for economic tools for risk management, in relation to farms’ needs, exposure and vulnerability of agricultural areas to climatic risk. We consider at the farm level approaches to hedge risks in terms of the use of technical tools (agricultural practices, pesticides, fertilizers, irrigation) and economic/financial instruments (insurances, etc.). We develop cross-sectional and longitudinal analyses as well as analyses of correlation that underline the main differences between the way farms adapt their structure and management towards risk. The results show a preference for technical tools, despite the presence of important public aids on economic tools such as insurances. Therefore, there is a strong need for a more effective and integrated risk management policy scheme. Synergies between economic tools and risk reduction actions of a more technical, structural and management nature (production diversification, irrigation infrastructures, technological and management innovations and formation-information-consultancy, etc.) are emphasized.

• The Impact of Corporate Governance on Risk Taking in European Insurance Industry

  Authors: Francesco Venuti, Simona Alfiero, Keywords: Agency theory, corporate governance, insurance companies, risk taking. DOI:10.5281/zenodo.1338768 Abstract: The aim of this paper is to develop an empirical research on the nature and consequences of corporate governance on Eurozone Insurance Industry risk taking attitude. More particularly, we analyzed the effect of public ownership on risk taking with respect to privately held Insurance Companies. We also analyzed the effects on risk taking attitude of different degrees of ownership concentration, directors compensation, and the dimension/diversity of the Board of Directors. Our results provide quite strong evidence that, coherently with the Agency Theory, publicly traded insurance companies with more concentrated ownership are less risky than the corresponding privately held.

• The Effect of Insurance on Foreign Direct Investments Inflow to Nigeria

  Authors: Chimaobi V. Okolo, Afamefuna J. Ani, Ebere U. Okolo, Keywords: Foreign direct investment, insurance. DOI:10.5281/zenodo.1108697 Abstract: This paper seeks to assess the implications of insurance to foreign direct investment inflow in Nigeria. Multiple linear regression technique and correlation matrix test were employed to measure the extent to which foreign direct investment was influenced. The result showed that insurance premium (IP), asset size of insurance industry (AS), and total investment of the industry (TI) impacted significantly and positively on foreign direct investment inflow in Nigeria. There should be effective risk transfer mechanism and financial intermediation, which gives the investor confidence in the risk management strength of the host country.

• Information Technology for Business Process Management in Insurance Companies

  Authors: Vesna Bosilj Vukšić, Darija Ivandić Vidović, Ljubica Milanović Glavan, Keywords: Business processes management, process orientation, information technology, insurance companies. DOI:10.5281/zenodo.1108689 Abstract: Information technology plays an irreplaceable role in introducing and improving business process orientation in a company. It enables implementation of the theoretical concept, measurement of results achieved and undertaking corrective measures aimed at improvements. Information technology is a key concept in the development and implementation of the business process management systems as it establishes a connection to business operations. Both in the literature and practice, insurance companies are often seen as highly process oriented due to the nature of their business and focus on customers. They are also considered leaders in using information technology for business process management. The research conducted aimed to investigate whether the perceived leadership status of insurance companies is well deserved, i.e. to establish the level of process orientation and explore the practice of information technology use in insurance companies in the region. The main instrument for primary data collection within this research was an electronic survey questionnaire sent to the management of insurance companies in the Republic of Croatia, Bosnia and Herzegovina, Slovenia, Serbia and Macedonia. The conducted research has shown that insurance companies have a satisfactory level of process orientation, but that there is also a huge potential for improvement, especially in the segment of information technology and its connection to business processes.

• The Effect of Catastrophic Losses on Insurance Cycle: Case of Croatia

  Authors: D. Jakovčević, M. Mihelja Žaja, Keywords: Catastrophic loss, insurance cycle, premium, Republic of Croatia. DOI:10.5281/zenodo.1093796 Abstract: This paper provides an analysis of the insurance cycle in the Republic of Croatia and whether they are affected by catastrophic losses on a global level. In general, it is considered that insurance cycles are particularly pronounced in periods of financial crisis, but are also affected by the growing number of catastrophic losses. They cause the change of insurance cycle and premium growth and intensification and narrowing of the coverage conditions, so these variables move in the same direction and these phenomena point to a new cycle. The main goal of this paper is to determine the existence of insurance cycle in the Republic of Croatia and investigate whether catastrophic losses have an influence on insurance cycles.

• Underwriting Risks as Determinants of Insurance Cycles: Case of Croatia

  Authors: D. Jakovčević, M. Mihelja Žaja, Keywords: Insurance cycle, insurance risks, combined ratio, Republic of Croatia. DOI:10.5281/zenodo.1092211 Abstract: The purpose of this paper is to analyze the influence and relative share of underwriting risks in explaining the variation in insurance cycles in subsequent periods. Through the insurance contracts they underwrite, insurance companies assume risks. Underwriting risks include pricing risk, reserve risk, reinsurance risk and occurrence risk. These risks pose major risks for property and liability insurers, and therefore their impact on the insurance cycle is important. The main goal of this paper is to determine the relative proportion of underwriting risks in explaining the variation of insurance cycle. In order to fulfill the main goal of the paper vector autoregressive model, VAR, will be applied.

• Insurance Fraud Management as an Integrated Part of Business Intelligence Framework

  Authors: Pavel Pešout, Miroslav Andrle, Keywords: business intelligence, insurance fraud, fraudmanagement DOI:10.5281/zenodo.1076298 Abstract: Frauds in insurance industry are one of the major sources of operational risk of insurance companies and constitute a significant portion of their losses. Every reasonable company on the market aims for improving their processes of uncovering frauds and invests their resources to reduce them. This article is addressing fraud management area from the view of extension of existing Business Intelligence solution. We describe the frame of such solution and would like to share with readers all benefits brought to insurance companies by adopting this approach in their fight against insurance frauds.