Over the last years, the use of credit insurance has become even more vital since it also helped financial institutions reduce their risk-weighted assets by way of risk mitigation. Historically, credit insurance was a way to minimize the counterpart and country (political) risks; however, under Basel II and III provisions, it helps banks to optimize their capital adequacy as well. This qualitative research study elaborates the economis aspects, capital relief of European banks in addition to the risk mitigation funtion of credit insurance. The study is a real-life and professional business life driven so that business professionals, too, would benefit from this research study. The paper, based on the true experience of different bankers in Europe reports that credit insurance mostly accomplishes the targets of financial institutions in order to opmize their portfolio, reduce risk-weighted assets and relieve their capital. This study would help risk managers, business experts and any other involved parties in credit insurance, align with the business practices of other and similar institutions.
Chapter 1 sets out the background to enterprise- wide risk management (EWRM). Chapter 2 examines literature on EWRM and Chapter 3 assesses key theoretical approaches to EWRM. Chapter 4 sets out the research design while Chapter 5 presents and discusses the results of an empirical investigation which explores the views of 16 Chief Executive Officers drawn from 16 Zimbabwean short- term insurance companies. Research evidence shows that whilst risk awareness seems good in most Zimbabwean short-term insurance companies, a significantly lower number take adequate measures to reduce risks to their lowest practical levels. It might be suggested that the Zimbabwean short-term insurance industry has limited capabilities to consistently identify, measure and manage risk exposures across the company and thereby limit exposures. Execution of EWRM is sporadic and losses have not been limited in accordance with predetermined risk tolerance guidelines. Therefore, the Zimbabwean short-term insurance industry might be viewed as having weak EWRM. Therefore this research provides a wide range of recommendations to address the identified weaknesses.
Life insurance is a professional service that is characterized by high involvement of the consumer due to the importance of tailoring specific needs, the variability of the plans available in the market and the need to involve the consumer in every aspect of the transaction. Hence, a great deal of sensitivity is needed in dealing with the customers of insurance policies. However, the protection of policyholders' interests and customer satisfaction are the most important issues which are to be taken care of after the privatization of the industry. With the opening up of life insurance industry in India a number of questions comes to ones mind regarding this move of the government. The big question is that how far this move as apart of structural adjustment program initiated by the govt. will prove to be a blessing for the Indian masses and the economy. Previous experiences of flew by night plantation companies,sensitive stock market always pose a fear in the mind of the Indian masses about the security of the money and future. So the present project is being undertaken with a view to find the challenges before LIC and private insurance companies.
Most of the existing studies evaluating performance of market-based agricultural risk management instruments, are based on static, two-period models in which hedging or insurance is undertaken in the first period and all uncertainty is resolved in the second period. In reality, risk management decisions are undertaken in a multi-period, dynamic environment in which decisions in any period can affect outcomes in other periods. Once the modeling environment becomes truly dynamic, things can change substantially. This book focuses on interaction between farmer insurance decisions and their borrowing and saving decisions in a multi-period dynamic model. This type of interaction has not been comprehensively addressed in existing literature. In this book, a simple stochastic dynamic model is developed and solved for a risk-averse farmer using revenue insurance to manage risk and, also borrows and lends subject to a credit constraint. The analysis provides new insights into inter-temporal risk management behavior of farmers. It also suggests reasons why the effective demand for agricultural insurance may be much lower than that predicted by simple static models of agricultural insurance.
China has been announced to be the world’s largest shipbuilder in 2010. However, the author understood that the research on builder’s risk insurance, which aims to protect the shipbuilding industry, is unfortunately quite limited. The countries, which having such important interests in shipping as China, should have a well-developed law body dealing with builder’s risk insurance issues. She was therefore triggered to do a research by comparing the main clauses of builder’s risk insurance according to the three legal systems (UK, China and Norway) and to find out the similarities and differences between them. The author keeps the hope that her research, though limited, could explain more these three systems by emphasizing some points and help to improve the existing clauses, especially the ones in Chinese situation. The author also hopes that this paper could attract more attention for research on the builder’s risk insurance, as it plays an essential protective role for the shipbuilding industry.
Learn about today's hottest new risk management tools One of the hottest areas of finance today, alternative risk transfer, or ART, refers to the use of various insurance products to manage market, credit, operational, legal, environmental, and other forms of risk. As the capital and insurance markets continue to converge, the number and complexity of new risk-defraying insurance products available to corporations, brokerages, money managers and other financial professionals will continue to grow. Expert Christopher L. Culp uses case studies of recent ART transactions used by risk managers to put the field into perspective for financial professionals and to acquaint them with the various types of risk control products now available. In addition he explores, in-depth, the links between ART, derivatives and bank-arranged risk financing, and he explains the key differences between classic insurance products and financial guarantees, risk financing, bundled layering, and other ART forms.
The rising cost of health care financing the world over in the 1980s led to a paradigm shift in health care financing, from point of service; user fees; out- of- pocket- payments otherwise referred to as ‘cash and carry’, to prepaid systems and for that matter health insurance as an alternative health care financing system. Health insurance is said to be an efficient and effective system which ensures the provision of accessible, affordable, equitable and quality health care services to a majority of people, especially the poor and vulnerable, hence, its adoption by the Government of Ghana as part of its poverty reduction strategy in 2003. Even though a good health financing system, the implementation of health insurance has posed a lot of challenges with respect to its technical design, managerial capabilities, organizational and institutional arrangements. The study therefore finds out whether the health insurance scheme and its implementation is capable of ensuring adequate risk pooling and sharing, efficient management for sustainability, and the achievement of the Millennium Development Goals 4 and 5 on health.
In crop insurance it is necessary to understand how underlying risk variability arises from changes in prices, yields, or both. Typically, agricultural risks are not isolated from one another. The underlying risks are dependent in different dimensions, such as time dependence, portfolio dependence, and spatial dependence. Thus, it is important to be able to adequately model dependence with multivariate outcomes. Ignoring dependencies can lead to possibly biased and inefficient estimates of the risk. This study provides a comprehensive and in-depth economic and statistical analysis of various risk in agriculture, especially the dependence structure of agricultural risk. Using both estimation and simulation methods, we analyze the interaction of risk in the presence of time-varying dimension, portfolio dimension and spatial correlation dimension. By modeling and measuring dependence, it is possible to improve risk management instruments that take advantage of dependencies between different products. This will help improve the risk management and will help government, insurance/reinsurance companies, and policy makers to evaluate their contract design and policy making.
Nigeria poses a high return on investment and is on the search light of foreign investors. Nonetheless, there are risks that face these investors in the country. It is therefore, pertinent to expose the relevance of the insurance sector in absorbing the risk that could accrue to these investments coming into the country. The empirical study showed that insurance sector impacted positively and significantly on Nigeria's foreign direct investment inflow. However, there should be effective risk transfer mechanism and financial inter-mediation, which gives the investor confidence in the risk management strength of the host country.
In the modern business world the economic weather changes very abruptly hence creating a lot of room for risks. Such an environment which is full of risks is in no way favorable for investors. Insurance companies are playing a pivotal role in encouraging investors to start their business even with high risk probability, by sharing a part of their risk. This risk absorbing role of insurance companies is vital in today’s economy. As with all other companies, the performance of insurance companies need to be evaluated from time to time. Performance of an insurance company can be measured using the primary data that is published in annual reports and yearbooks. The aim of this report is to analyze the performance of Pakistan’s insurance companies in terms of their profitability. Profitability will be calculated using a multiple regression model where the independent variables are the determinants like age, size, liquidity and loss ratio etc. Three life insurance and three non-life, private sector insurance companies have been selected for this purpose and their performance has been evaluated in this report.
The field of transportation management is a relatively new but very important and challenging field. The transport manager is an expert with knowledge concerning all kinds of vehicles and the transportation processes. The transport manager plays a very important role for the general public involved in the transportation of goods. People may have difficulties to understand the transportation process involving goods, for example, which truck carrier is the best suited for a specific group of people or how the shipment would be processed in time and space. People are only concerned about their goods and their shipment from origin A to destination B in a safe and timely fashioned. This fact clearly indicates that people need the services of a transport manager. The transport manager has to be very careful when making a decision during the whole transportation process, because a wrong decision could cause physical damage to the goods or delay the reception of the shipment. For these reasons, the transport manager needs a really good insurance that covers the whole responsibility of the transportation process. The transport manager has to do his job without stress and without worries.
The collapse of some insurance companies coupled with little emphasis on some of the risk factors in estimating motor insurance claims would give room for unfairness in making claim.The study has revealed the difference in the contribution level to making claims This allowed for an in-depth analysis of claim variables to assist in understanding the motor insurance claims.The SIC Insurance Company Limited should give relatively high premium to new cars as compared to older ones due to their higher demand of claims.Structuring the risk factors could help actuaries concerned with motor claims to appreciate the problems and advise the underwriters accordingly.Information Bill must be passed into law in view of removing the bottlenecks associated with data acquisition which was a serious challenge of this study.It is also recommended that further study be done in other insurance companies with the view of appreciating the discrepancies that exist in valuing risk, thus help Policy makers and particularly National Insurance Commission (NIC) to fairly price motor premiums.
This book includes comprehensive insurance topics and techniques of selling life and non life insurance .It describes general terms,principles and progress of insurance market. It also describes the levels of insurance institutions and their type of organizational structure.The book is suitable for students who are attending risk and insurance related topics and to those junior insurance officers.
Insurance is a device for indemnifying or guaranteeing an individual against loss. Reimbursement is made from a fund to which many individuals exposed to the same risk have contributed certain specified amounts, called premiums. Payment for an individual loss, divided among many, does not fall heavily upon the actual loser. The essence of the contract of insurance, called a policy, is mutuality. The major operations of an insurance company are underwriting, the determination of which risks the insurer can take on; and rate making, the decisions regarding necessary prices for such risks. The underwriter is responsible for guarding against adverse selection, wherein there is excessive coverage of high risk candidates in proportion to the coverage of low risk candidates. In preventing adverse selection, the underwriter must consider physical, psychological, and moral hazards in relation to applicants. Physical hazards include those dangers which surround the individual or property, jeopardizing the well-being of the insured. The amount of the premium is determined by the operation of the law of averages as calculated by actuaries.
An indispensable survival guide for high-net-worth individuals and their advisors If you're like most high-net-worth individuals nowadays, you are underinsured, over-targeted in litigation, and dangerously exposed to risks that can profoundly jeopardize your lifestyle and rob you and your family of what they’ve worked so hard to achieve. Don't risk it all for lack of basic knowledge. Read Wealth Exposed and get the practical guidance and real-world solutions you need to protect your hard-earned assets. Written by a leading national risk management expert with extensive experience advising high-net-worth individuals, Wealth Exposed alerts you to the full range of risks to which high-net-worth individuals are exposed, while schooling you in your risk management ABCs. Designed for high-net-worth individuals, their CPAs, attorneys, family office managers, and others, Wealth Exposed arms you with the knowledge and tools you need to protect yourself, or your clients, from mayhem. Provides a framework for creating a comprehensive personal risk management strategy Contains numerous real-life anecdotes and case studies drawn from the author's case files Discusses insurance solutions for property, cars, jewelry, aircraft, watercraft, wine, cars, and more Read Wealth Exposed and find out what you need to know to protect your assets from risk and secure your peace of mind.
Insurance is an important part of present day economy. But not all the economies have been benefiting from insurance, Saudi Arabia is one such country where the insurance was not very popular. It was only recently insurance formally became part of Saudi Arabian economy. In 2004 the Saudi Arabian Monetary Agency (SAMA) was assigned with the responsibility of managing the affairs of insurance industry in Saudi Arabia. Since then the insurance industry has been growing by leaps and bounds. More than 30 companies, multinationals and national have been approved for conducting the insurance business. Besides, a large number of companies have entered the market as brokers, insurance agencies etc. In this book various aspects of the insurance have been presented in reference to Saudi Arabia. There are in all 6 chapters followed by glossary and appendices. The six chapters are Introduction to insurance, Types of insurance, Concept of reinsurance, Insurance companies and insurance agency operations, Concept of Takaful and finally Insurance industry in Saudi Arabia.
Protection from risks, natural or inherent in any human activity and the adversities in life, ?has always been the necessity of people at all times and in all phases of human ?combination. The mechanism evolved to have the needed protection from risks and ?mishaps developed in the form of presenting ‘Insurance.'' The mechanism of insurance is ?based on sharing of risk and proportionate distribution of risk among the same group of ?people. Moreover, India had achieved independence and the country had embarked upon ?the policy of planned development of insurance sector. This book aims to examine the ?progress made by insurance industry, government as well as private in pre and post ?liberalization scenario and the impact of privatization on the LIC which still functions as a ?government insurance institution in the public sector. The authors also try to evaluate in ?detail the influence of the nature of LIC''s liability characteristics and of the legal ?framework on the investment pattern of the LIC in terms of quantum and direction of ?investments.?
This study sets out to explore the concept of risk management within the framework of the agricultural financial markets in developing countries. The framework provides opportunities for innovative agricultural insurance tools. Microinsurance and index-based indemnification mechanisms have been recognized as potential instruments for transferring risks by providing cover, or indemnification, against losses in a disaster event. This insurance product provides an easily accessible insurance cover for small-scale assets at affordable premiums while keeping transaction and other costs low. By protecting the poor from disaster losses and providing incentives for risk reduction, microinsurance is increasingly recognized as an important part of risk management. However, it was to be tested in Sri Lanka. The main objective of this study was to examine the possibility and suitability of introducing index-based microinsurance for the small-farmers in paddy crop cultivation in the context of production risk caused by natural disasters.
The risk is concerned with physical and financial well-being. The people are living with some threatening like fire, flood, earthquake, accident, terrorist attack, etc. That shows certain risks are present in our society. We can say, we are living in a risky world. In the present day context, individuals have a strong desire for financial security and protection against those events that threaten their financial security. Financial security can be threatened by numerous factors such as;If the family head is killed in an accident, Destruction of property by fire, floods, earth quakes and other natural factors, Infected by serious diseases such as Cancer, Heart disease, HIV etc.Thus, it is apparent that certain factors can threaten the financial security of individuals and their families. The primary objective of this book is to create and add powerful and significant thought and to help managers in forecasting and handling of different potential adverse effects that can hurt their business venture and their employees while they are in operation, because, in the absence of the knowledge of this issue managers might be obliged even to close their operation.
Insurance has several economic and social advantages. Primarily it covers the risk of financial loss of individuals by distributing fairly and equitably to the insured community. Insurance promotes investment by taking away the risk from the investor. Insurance sector in general and life insurance in particular in Ethiopia have been given little attention to the concept of marketing over the years. However, according to recent marketing concepts ; while selling is concerned with creating demand for the products that have already been decided, marketing is directed towards identifying the needs and wants of consumers and planning to satisfy those needs. Hence, in this context, the necessity of understanding the needs and wants of consumers to marketing could be taken to the bone, the tendon, and the ligament of businesses without which no articulation can take place. Here comes the importance of marketer to understand the factors affecting buyers’ and prospects attitude towards life insurance policy purchase, which in turn, affects need and wants to offerings in order to be able to take informed marketing-related decisions. So,this book will be useful resource for marketers & agents.
These days there are different types of risks faced by the organizations and much emphasis is placed on its procedures following the aftermath of corporate scandals and global financial crisis. It is imperative to assess and appraise the nature, quantum and extent of the risks faced by the organizations specifically, in the Insurance Companies. An appropriate risk management strategy needs to be formulated by these companies. The main emphasis of this book is to evaluate the significance of the key constructs and the determinants of risk management and its process. This book also suggests a number of tools and techniques that are used by the dynamic and competitive organizations. It covers the theory of risk management, enterprise risk management, risk management in the insurance companies and the COSO enterprise risk management framework. This book will enhance the understanding of the layman interested in gaining knowledge about risk management and will also enrich the technical expertise of the risk managers, chief risk officers (CRO), the corporate executives and the practitioners.
Learn from some of the most respected women in insurance and risk management Women to Watch presents the advice, guidance, and lessons learned from the most successful women in risk management and insurance. For the past 10 years, Business Insurance has highlighted key women in the field—women noted for their skills, accomplishments, courage, wisdom, and everyday steel. In this book, these women present their stories in their own words; through essays and anecdotes about key issues, key moments, and crucial lessons, former Women to Watch honorees provide a glimpse into what it takes to make it. They've battled obstacles, hurdles, and institutionalized career impediments—and they've come out on top; their stories provide inspiration, motivation, and concrete, real-world guidance for all women who seek advancement in the insurance and risk management fields. Business Insurance receives several hundred Women to Watch nominations every year; of those, they honor only 25. These women are the cream of the crop, and their unique insights into all-too-common experiences can help us all rise to the top. Shatter the glass ceiling and close the wage gap Shift your perspective on what «work/life balance» means Celebrate and navigate the workplace's changing demographics Learn how successful women get it done The insurance and risk management fields look very different today than they did even 10 years ago; there is much to celebrate, but even more still left to be done. There is no substitute for the wisdom of experience, and the best lessons come from those who have navigated the path successfully. Women to Watch provides unique insight into the women who have conquered the field, and critical perspective for those who will follow.