Russian insurance market: Problems of functioning and growth drivers in times of the coronavirus crisis

2021 ◽  
Vol 27 (3) ◽  
pp. 540-560
Author(s):  
Ol'ga A. GRISHINA ◽  
Tais V. DRYUK
Keyword(s):  
Banking Sector ◽  
Insurance Market ◽  
Short Term ◽  
Market Growth ◽  
Sales Channel ◽  
Russian People ◽  
Direct Sales ◽  
Insurance Sector ◽  
Sales Channels ◽  
Current Stage

Subject. The article investigates indicators of certain segments of the Russian insurance market in 2020, key problems of the market functioning in the context of the coronavirus crisis, and possible solutions. Objectives. Our aim is to identify key problems in the market functioning in conditions of the coronavirus crisis, propose measures to solve them, and specify the market growth drivers in the short term. Methods. We perform a content analysis of available sources and use statistical data for the period under review. Results. The study reveals that at the current stage of the Russian insurance market development, all its key growth drivers are associated with the sales channel of banks. This highlights imbalances in the structure of sales channels for insurance products, the underdevelopment of the direct sales channel, and, consequently, imbalances in the structure of the Russian financial market. It is obvious that the level of confidence of the Russian people in the banking sector is higher than in the insurance sector, and the sale of a significant share of insurance products stems from the requirements of banks when they sell their credit products. Conclusions. The insurance sector is highly integrated with the banking sector. Furthermore, it is extremely susceptible to crisis phenomena in the credit market. To overcome this dependence, it is crucial to implement a set of measures to increase the level of insurance culture of the Russian people, their awareness of existing and newly created insurance products, the benefits of insurance, in combination with measures for boosting the effective demand.

Impact of banking sector development on insurance market-growth nexus: the study of Eurozone countries

Empirica ◽  
2018 ◽  
Vol 47 (2) ◽  
pp. 205-243
Author(s):  
Saurav Dash ◽  
Rudra P. Pradhan ◽  
Rana P. Maradana ◽  
Kunal Gaurav ◽  
Manju Jayakumar
Keyword(s):  
Banking Sector ◽  
Insurance Market ◽  
Market Growth ◽  
Banking Sector Development

The Impact of Financial Crisis on the Non-Life Insurance Market in Lithuania : Will the Market Growth Expectations be Met?

2015 ◽  
Vol 10 (1) ◽  
pp. 5-18
Author(s):  
Ausrine Lakstutiene ◽  
Rasa Norvaisiene ◽  
Jurgita Stankeviciene ◽  
Rytis Krusinskas
Keyword(s):  
Financial Crisis ◽  
Life Insurance ◽  
Growth Potential ◽  
Third Party ◽  
Liability Insurance ◽  
Insurance Market ◽  
Market Growth ◽  
Insurance Sector ◽  
Market Trends ◽  
The Impact

The article analyzes the insurance market trends, which have been determined by the financial crisis, and reveals the development features and prospects of non-insurance market, which accounts for almost 70% of the total insurance market, in Lithuania. The obtained results showed that after the market shrank by a quarter in 2009, the insurance sector is recovering, and while the volume of issued insurance premiums increased in 2013, they still remain lower than during the pre-crisis period. 2010 is a distinctive year for the Lithuanian non-insurance market due to a track of unusual abundance of adverse events. Throughout the analyzed period the structure of the non-insurance market issued portfolios remained the same in Lithuania, and throughout the whole analyzed period non-insurance market is dominated by Mandatory Third Party Liability Insurance (MTPLI), Voluntary vehicle insurance (CASCO) and Property insurances, which, according to estimates and analysts' forecasts, have growth potential.

Digitalization of Competition in the Insurance Market

2018 ◽  
Vol 11 (2) ◽  
pp. 121-128
Author(s):  
D. V. Bryzgalov
Keyword(s):  
Digital Technologies ◽  
Insurance Market ◽  
Insurance Companies ◽  
Sales Channels ◽  
Channel Competition ◽  
Research Findings ◽  
The Subject

The subject of the research is the influence of the insurance market digitalization on competition forms in insurance. The purpose of the research was to study the forms of competition and factors of competitiveness in the process of digitalization of insurance activities. The research findings revealed the specifics of competition between insurance companies in digital sales channels of insurance services, and identified groups of new factors in the competitiveness of insurance programs. The paper describes two models of the policyholder behavior typical for traditional and digital sales channels in the insurance market — classical and digital. It is concluded that the digitalization of the insurance market influences the competition between insurance companies making a shift towards the channel competition and contributing to the emergence of new competition factors for insurance programs developed with digital technologies.

Indian Life Insurance Market and Corporate Performances: A Study of Selected Firms

2016 ◽  
Vol 4 (1) ◽  
Author(s):  
Joy Chakraborty ◽  
Partha Pratim Sengupta
Keyword(s):  
Market Share ◽  
Life Insurance ◽  
Market Concentration ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Insurance Sector ◽  
Life Insurers ◽  
Company Limited

In the pre-reform era, Life Insurance Corporation of India (LICI) dominated the Indian life insurance market with a market share close to 100 percent. But the situation drastically changed since the enactment of the IRDA Act in 1999. At the end of the FY 2012-13, the market share of LICI stood at around 73 percent with the number of players having risen to 24 in the countrys life insurance sector. One of the reasons for such a decline in the market share of LICI during the post-reform period could be attributed to the increasing competition prevailing in the countrys life insurance sector. At the same time, the liberalization of the life insurance sector for private participation has eventually raised issues about ensuring sound financial performance and solvency of the life insurance companies besides protection of the interest of policyholders. The present study is an attempt to evaluate and compare the financial performances, solvency, and the market concentration of the four leading life insurers in India namely the Life Insurance Corporation of India (LICI), ICICI Prudential Life Insurance Company Limited (ICICI PruLife), HDFC Standard Life Insurance Company Limited (HDFC Standard), and SBI Life Insurance Company Limited (SBI Life), over a span of five successive FYs 2008-09 to 2012-13. In this regard, the CARAMELS model has been used to evaluate the performances of the selected life insurers, based on the Financial Soundness Indicators (FSIs) as published by IMF. In addition to this, the Solvency and the Market Concentration Analyses were also presented for the selected life insurers for the given period. The present study revealed the preexisting dominance of LICI even after 15 years since the privatization of the countrys life insurance sector.

scholarly journals BANK PROFITABILITY AND MACROECONOMY: EVIDENCE FROM LITHUANIA

2017 ◽  
Vol 24 (2) ◽  
pp. 383-405 ◽  
Author(s):  
Laurynas NARUŠEVIČIUS
Keyword(s):  
Banking Sector ◽  
Short Term ◽  
Empirical Examination ◽  
Bank Profitability ◽  
Pooled Mean Group ◽  
Real Gdp ◽  
Income Statement ◽  
Main Determinants ◽  
The Relationship

The purpose of this paper is to investigate the relationship between profitability of the Lithuanian banking sector and its internal and external determinants. We use the panel error correc­tion model to assess long-term and short-term determinants of items from bank income statements (net interest income, net fee and commission income and operating expenses). The results of the pooled mean group estimator show that bank size and real GDP are the main determinants in the long-term. Meanwhile, empirical examination suggests various variables as short-term determinants of income statement items. The pooled mean group estimation technique and the analysis of sepa­rate income statement items enable us to have a better insight into the Lithuanian banking sector and determinants of its revenue and expenses.

The Analysis Of E-Commerce Logistics Efficiency Of The Ukrainian Construction Enterprises

2021 ◽  
Vol 38 (4) ◽  
Author(s):  
Marina Kravchenko ◽  
Hanna Manoryk ◽  
Natalia Sytnik
Keyword(s):  
Electronic Commerce ◽  
Economic Activity ◽  
Construction Materials ◽  
Net Income ◽  
Sales Channel ◽  
Direct Sales ◽  
Construction Enterprises ◽  
Manufacturing Enterprises ◽  
Industrial Enterprises ◽  
Final Consumer

An important component of successful economic activity of industrial enterprises is the optimal sales model combined with e-commerce opportunities. The article analyzed two construction materials manufacturing enterprises categories: those using exclusively a sales network for the promotion of their products, and those developing a direct sales system to the final consumer via electronic commerce. These are basically two different logistical approaches to the process of selling their own products. The efficiency of using e-commerce logistics means is determined by the correlation of sales expenses index with an indicator of enterprises' net income. It was proved sales expenses' indicator affects the dynamics of the net income indicator positively only for the enterprises using e-commerce logistics as a means of setting up a direct sales channel for their products. The article provides recommendations for creating an optimal logistics e-commerce system for construction materials manufacturing enterprises.

Contemporaneous or causal? Evaluating the triumvirate of insolvency risk, capitalization and efficiency in Indian commercial banking

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Navendu Prakash ◽  
Shveta Singh ◽  
Seema Sharma
Keyword(s):  
Cost Efficiency ◽  
Banking Sector ◽  
Generalized Method Of Moments ◽  
Commercial Banking ◽  
Seemingly Unrelated Regression ◽  
Bank Capital ◽  
Short Term ◽  
Content Type ◽  
Insolvency Risk

PurposeThis paper empirically examines the short-term and long-term associations between risk, capital and efficiency (R-C-E) in the Indian banking sector across 2008–2019 to answer the presence of causation or contemporaneousness in the R-C-E nexus.Design/methodology/approachThe paper focuses on three objectives. First, the authors determine short-term causality in the risk–efficiency relationship by studying the simultaneous influence of a wide array of banking risks on DEA-based technical and cost efficiency in static and dynamic situations. Second, the authors introduce bank capital and contemporaneously determine the interplay between R-C-E using seemingly unrelated regression equation (SURE) and three-staged least squares (3SLS). Last, the authors assess stability in inter-temporal associations using Granger causality in an autoregressive distributed lag (ARDL) generalized method of moments (GMM) framework.FindingsThe authors contend that high capital buffers reduce insolvency risk and increase bank stability. Technically efficient banks carry lesser equity buffers, suggesting a trade-off between capital and efficiency. However, capitalization makes banks more technically efficient but not cost-efficient, implying that over-capitalization creates cost inefficiencies, which, in line with the cost skimping hypothesis, forces banks to undertake risk. Concerning causal relationships, the authors conclude that inefficiency Granger-causes insolvency and increases bank risk. Further, steady increases in capital precede technical and cost efficiency improvements. The converse also holds as more efficient banks depict temporal increases in capitalization levels.Originality/valueThe paper is perhaps the first that acknowledges the influence of the “time” perspective on the R-C-E nexus in an emerging economy and advocates that prudential regulations must focus on short-term and long-term intricacies among the triumvirate to foster a stable banking environment.

scholarly journals Factors Affecting the Performance of Kuwait Stock Market

2016 ◽  
Vol 9 (5) ◽  
pp. 23
Author(s):  
Ebrahim Merza ◽  
Sayed-Abbas Almusawi
Keyword(s):  
Interest Rate ◽  
Real Estate ◽  
Stock Market ◽  
Banking Sector ◽  
Stock Exchange ◽  
Consumer Price Index ◽  
Gold Price ◽  
Oil Price ◽  
Factors Affecting ◽  
Insurance Sector

<p>This paper aims at finding the effective factors that influence three sectors in Kuwait stock exchange market (KSE) in addition to the whole stock market. The three sectors are banking, real estate and insurance sectors. The paper measures KSE performance through the average share prices calculated on a quarterly basis starting from 2005 until first quarter of 2015. It is found that each sector behaves differently towards macroeconomic variables. The most important determinants for the KSE overall market performance were found to be gold price and the deposits rate. Individually, the banking sector is influenced by consumer price index, interest rate on loans, oil price and gold price. The insurance sector is influenced by money supply, residential real estate price and oil price. The real estate sector is influenced by the exchange rate with respect to US dollars, interest rate on loans, oil price and gold price.</p>

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