Road Safety Engineering: Role for Insurance Companies?

2000 ◽  
Vol 1734 (1) ◽  
pp. 7-11
Author(s):  
Sany R. Zein ◽  
Frank Navin
Keyword(s):  
Road Safety ◽  
Insurance Industry ◽  
The United States ◽  
Public Image ◽  
Insurance Companies ◽  
Safety Engineering ◽  
Insurance Company ◽  
Driver Education ◽  
Engineering Programs ◽  
Ultimate Responsibility

Over the last 10 years there has been a growing trend among automobile insurance companies to become involved in road safety engineering programs. While the involvement of insurance companies in driver education and vehicle design initiatives is common, insurance company initiatives aimed at the engineering element of road safety is a relatively new trend. This research summarizes the major road safety engineering programs undertaken by six insurance companies in Australia, Canada, and the United States, and presents some of the results achieved. The research finds that the immediacy of the benefit derived from road safety engineering improvements, coupled with an expanding knowledge base in this field, are contributing to the growth in interest in road safety among insurance companies. The financial interest of insurance companies in reducing crash frequencies and severities, as well as any related positive public image that road safety advocacy can generate, will likely mean that more insurance companies will be exploring avenues for participation in road safety programs. Opportunities exist for cooperation between the insurance industry and transportation engineers, and they should be pursued for mutual benefit. Although the ultimate responsibility and authority for roads should remain with public agencies, the incentive and emphasis that insurance companies place on road safety provide a unique opportunity to help reduce the daily risks that we face in a mobile world.

The Pioneer in American Life Insurance Marketing

1938 ◽  
Vol 12 (5) ◽  
pp. 65-75
Author(s):  
J. Owen Stalson
Keyword(s):  
United States ◽  
Eighteenth Century ◽  
North America ◽  
Life Insurance ◽  
General Public ◽  
Colonial America ◽  
The United States ◽  
Insurance Companies ◽  
Insurance Company ◽  
Fire Insurance

Colonial America gave little thought to life insurance selling. The colonists secured protection against marine risks from private underwriters, first in London, eventually at home. It has been asserted that Philadelphia had no fire insurance until 1752; Boston none before 1795. The first corporations formed in this country for insuring lives were those of the Presbyterian Ministers Fund (1759) and a similar company organized for the benefit of Episcopal ministers (1769). Neither of these corporations offered insurance to the general public. In the last decade of the eighteenth century many insurance companies were formed in the United States. At least five were chartered to underwrite life risks, but only one, The Insurance Company of North America, appears to have accepted any. There is no basis for saying that any of these early companies tried to sell life insurance.

Who Benefits When Prescription Drug Manufacturers Offer Copay Coupons?

2019 ◽  
Vol 65 (8) ◽  
pp. 3758-3775 ◽  
Author(s):  
Gregory J. King ◽  
Xiuli Chao ◽  
Izak Duenyas
Keyword(s):  
Prescription Drug ◽  
Prescription Drugs ◽  
Operations Management ◽  
Insurance Industry ◽  
Empirical Work ◽  
The United States ◽  
Policy Implications ◽  
Insurance Companies ◽  
High Price ◽  
Multiple Drug

The rising cost of prescription drugs is a concern in the United States. To manage drug costs, insurance companies induce patients to choose less-expensive medications by making them pay higher copayments for more-expensive drugs, especially when multiple drug options are available to treat a condition. However, drug manufacturers have responded by offering copay coupons—coupons intended to be used by those already with prescription drug coverage. Recent empirical work has shown that such coupons significantly increase insurer costs without much benefit to patients, who incur lower out-of-pocket expenses with coupons but may eventually see higher costs passed to them. As a result, there is pressure from the insurance industry and consumer advocacy groups to ban copay coupons. In this paper we analyze how copay coupons affect patients, insurance companies, and drug manufacturers, while addressing the question of whether insurance companies would in fact always benefit from a copay coupon ban. We find that copay coupons tend to benefit drug manufacturers with large profit margins relative to other manufacturers, while generally, but not always, benefiting patients; insurer costs tend to increase with coupons from high-price drug manufacturers and decrease with coupons from low-price manufacturers. Although often helping drug manufacturers and increasing insurer costs, we also identify situations in which copay coupons benefit both patients and insurers. Thus, a blanket ban on copay coupons would not necessarily benefit insurance companies. In addition to the policy implications of our work, we make concrete managerial recommendations to insurers. We discuss how they should set formulary selection policies taking into account the fact that drug manufacturers may offer coupons; and we suggest how they can benefit from subsidizing coupons from drug manufacturers with low-price drugs, or from having drug manufacturers compete on price, to receive a favorable formulary position (i.e., copay). This paper was accepted by Yossi Aviv, operations management.

scholarly journals The Effect of Risk-Based Capital on Investment Returns of Insurance Companies in Kenya

2020 ◽  
Vol 16 (31) ◽  
Author(s):  
Willys Obuba Chache ◽  
Cyrus Iraya Mwangi ◽  
Winnie Nyamute ◽  
Caren Angima
Keyword(s):  
Linear Regression ◽  
Insurance Industry ◽  
Insurance Companies ◽  
Coefficient Of Determination ◽  
Ratio Test ◽  
Insurance Company ◽  
Risk Capital ◽  
Significance Level ◽  
Investment Returns ◽  
Capital Charge

This paper focuses on analyzing the effect of risk-based capital on investment returns of insurance companies in Kenya. The study population comprised of 63 insurance companies licensed by Insurance Regulatory Authority (IRA). A longitudinal (panel) design was used to describe the association amongst variables on the study duration. Moreover, secondary data was collected from the insurance companies’ annual returns submitted to IRA for five-year duration (2014-2018), which yielded adequate data points for each insurance company deeming it viable. Risk-based capital was determined by the standard formulae as per the risk-based supervision model. It was a composition of operational risk charge, market risk charge, insurance risk charge, credit risk capital charge, and an adjustment which considered the lossabsorbing capacity of technical provisions and deferred taxes. Investment returns in insurance companies was calculated using the investment income ratio. Test of normality, linearity, multicollinearity, and independence were conducted and were found suitable for linear regression to be conducted. Linear regression was used to evaluate the nature of the relationship between the variables based on the hypothesis in the study and at a significance level of 5%. Coefficient of determination ( ) was derived to show how the model fits the data. The study findings revealed a positive and significant relationship between risk-based capital and investment returns, thus allowing investment portfolio managers in the insurance industry to justify their investments in high risk areas that may attract a high capital charge.

scholarly journals THE IMPACT OF THE INDUSTRIAL REVOLUTION 4.0 ON THE INSURANCE INDUSTRY AND WHETHER OF THE ASSETS AND INVESTMENTS PLAY A ROLE TO INVESTMENT YIELD?

2020 ◽  
Vol 8 (2) ◽  
pp. 345-351
Author(s):  
Iskandar Muda ◽  
Hafizah ◽  
Bunga Aditi ◽  
Hermansyur ◽  
Erlina
Keyword(s):  
Financial Services ◽  
Financial Stability ◽  
Industrial Revolution ◽  
Insurance Industry ◽  
Least Square Method ◽  
Partial Least Square ◽  
Least Square ◽  
Insurance Companies ◽  
Insurance Company ◽  
The Impact

Purpose of the study: This research aims to know the influence of the Industrial Revolution 4.0 era on the insurance industry on the side of assets and Investment insurance companies to Investment Yield Sharia Insurance in Indonesia. Methodology: This type of research is explanatory research. This type of research data is secondary data sourced from the Financial Services Authority (OJK) Republic of Indonesia period in 2016-2107. The tool of analysis in this research is the Partial Least Square method using Smart PLS statistics. Main Findings: The results are an influence of Assets and Investment on Investment Yield on insurance companies in the Industrial Revolution 4.0 era. In the era of the industrial revolution, 4.0 potential insurance improve economic growth through several aspects, namely promote financial stability. Facilitate trade and commercial activities. mobilize domestic savings. Offering a variety of risk management on capital. Increase more efficient allocation of capital and reduce the risk of loss and can increase Investment Yield for shareholders and stakeholders. Applications of this study: This research is the observation only on Sharia Insurance Company sample while other issuers are not observed in this study and this research implies that sharia insurance issuers are growing and contributing to their shareholders and shareholder. Novelty/Originality of this study: The first time observing the Sharia Insurance industry industrial Revolution 4.0 era and previous research to observe in Sharia banking.

The Ethics of Insurance Industry Step Therapy Policies

2019 ◽  
Vol 38 (3) ◽  
pp. 339-351
Author(s):  
Michael A. Santoro ◽  
Keyword(s):  
Cost Effectiveness ◽  
Insurance Industry ◽  
Physician Behavior ◽  
Cost Effective ◽  
Insurance Companies ◽  
Insurance Company ◽  
Company Policy ◽  
Costly Treatment ◽  
Evidenced Based ◽  
Step Therapy

Step therapy is an insurance company policy whereby patients must try a less costly treatment and fail-first before the insurer will cover another, more costly treatment. This article argues that (1) there are relevant and well-established principles of medical ethics—the duty to practice evidenced-based medicine and the duty to consider cost-effectiveness when treating patients—that constrain and guide physician behavior with respect to step therapy; (2) clinical practice guidelines (CPGs) promulgated by authoritative physician groups attempt to incorporate and reconcile the competing demands of evidenced-based and cost-effective medicine, although it is unclear whether they do so in a manner that appropriately considers all relevant ethical factors relating to cost-effectiveness; and (3) despite the potential shortcomings of CPGs, the ethical principles guiding and constraining physician behavior can help demarcate the ethical boundaries for other actors in the drug prescribing and reimbursement matrix, including insurance companies and benefit managers.

scholarly journals Health Reform and the Preservation of Confidential Health Care for Young Adults

2012 ◽  
Vol 40 (2) ◽  
pp. 383-390 ◽  
Author(s):  
Lauren Slive ◽  
Ryan Cramer
Keyword(s):  
Health Care ◽  
Young Adults ◽  
Private Insurance ◽  
The United States ◽  
Insurance Companies ◽  
Total Charge ◽  
Insurance Company ◽  
Provider Type ◽  
Seek Health Care ◽  
Financial Obligation

A major issue facing the health of both minors and young adults in the United States is the often unintentional lack of confidentiality maintained in the provision of sensitive health services. Studies have shown that access to confidential care is crucial for minors seeking preventive care and treatment for sensitive services. Evidence demonstrates that many minors will not seek health care if confidentiality cannot be ensured, which can have significant negative health implications; this finding can be extended to young adults covered under their parents health plans. Young adults, not just minors, also often forgo important sensitive services when they face a breach of confidentiality, which most likely occurs when their parents have access to the adult child's health information.Currently, private insurance companies generally send the policyholder an explanation of benefits (EOB) whenever a service is provided under a plan. EOBs generally include information identifying the patient, provider, type of care received, total charge for services, amount paid by the insurance company, and any financial obligation of the policyholder.

scholarly journals Performance of Malaysian Insurance Companies Using Data Envelopment Analysis

2018 ◽  
Vol 11 (3) ◽  
pp. 1147 ◽  
Author(s):  
Ng Jia Bao ◽  
Rohaizan Ramlan ◽  
Fazeeda Mohamad ◽  
Azlina Md Yassin
Keyword(s):  
Data Envelopment Analysis ◽  
Insurance Industry ◽  
Secondary Data ◽  
Efficiency Score ◽  
Equity Capital ◽  
Insurance Companies ◽  
Data Envelopment ◽  
Insurance Company ◽  
Policy Makers ◽  
Using Data

The purpose of this study is to evaluate the performance of the local insurance in Malaysia for the period 2014-2015. The major challenge in the insurance industry is increasing competition in this market. Besides that, problematic in performance measurement to evaluate performance is another challenge in insurance industry. 24 local insurance companies involved in this study using quantitative method of Data Envelopment Analysis (DEA) output-orientation CCR model. This study utilizes three inputs and three outputs; operating expenses, equity capital and commission as well as net premium, net investment income, and net incurred claim. The secondary data sources were derived from official data of local insurance companies’ annual report respectively. The DEA-Solver-LV version 8 tools were used to analyze the data that have been collected to evaluate the performance of local insurance company. This DEA model allows integration of the performance for the insurance companies and provides management overall performance evaluation. The results showed that there are 8 efficient companies in 2014 and 9 efficient companies in 2015. The average efficiency score in 2014 was increased from 78.9% to 79.1% in 2015. The findings from this study will benefit the insurance associations in Malaysia, management of insurances companies and policy makers.

scholarly journals Identying Factors That Influences Fradulences in Non-Life Insurance Companies

2021 ◽  
Vol 9 (6) ◽  
pp. 93-102
Author(s):  
P. Ravindran Pathmananathan ◽  
Khairi Aseh
Keyword(s):  
Life Insurance ◽  
Tax Evasion ◽  
Insurance Industry ◽  
Insurance Companies ◽  
Insurance Fraud ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Context Management ◽  
Public Context ◽  
Management Functions

Insurance fraud is the most common form of fraud in the world, aside from tax evasion. By its very existence, the insurance industry is prone to deception. Basic income levels in Vietnam have a tendency to steadily rise as a result of improving socioeconomic conditions. As a result, the need for citizen security has increased and become more diverse.The aim of this study is to study the predictor/s of anti-insurance fraud among non-insurer companies in Vietnam. This study was conducted using a questionnaire that was completed by 51 employees who are currently working in the 11 non-life insurance company in Vietnam. It can be concluded that there exists a significant relationship between all the four independent variables which are namely external regulations, public context, management functions as well as underwriting guidance.

scholarly journals Measuring the effectiveness of intermediary loyalty programmes in the motor insurance industry: loyal versus non-loyal customers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel Leiria ◽  
Efigénio Rebelo ◽  
Nelson deMatos
Keyword(s):  
Insurance Industry ◽  
Binary Logistic Regression ◽  
Data Access ◽  
Insurance Companies ◽  
Insurance Company ◽  
Content Type ◽  
Customer Data ◽  
Insurance Policies ◽  
Motor Insurance ◽  
Value Propositions

PurposeThe insurance industry has not been able to effectively retain its customers and struggles to establish and maintain long-lasting relationships with them. The purpose of this paper is thus to identify the main factors that explain the cancellation of motor insurance policies by individual customers, considering the influence of intermediaries on their decisions.Design/methodology/approachThe data used in this research is based on a sample of 3,500 insurance policies that lapsed during the period of analysis between January and July 2017, against another sample of 3,500 policies that did not lapse, from a major insurance company in Portugal. Binary logistic regression was used for data analysis, using IBM SPSS software.FindingsAggressive tactics by insurance companies for customer acquisition may induce the cancellation of insurance policies. More valuable customers, the policies with higher premiums and recent claims, as well as the ancillary intermediaries and agents, are determinants of insurance cancellation. Conversely, the payment of policies by direct debit and without instalments reduces the probability of cancellations.Research limitations/implicationsThe main limitation of this study is the restriction on data access. Insurance companies are significantly resistant to sharing their customer data – including with academic researchers – even in an anonymised form.Practical implicationsThe paper highlights internal and external practices of insurance companies that should be reformulated to significantly improve their performance regarding product cancellation, related to customer information management, mistrust behaviours related to stakeholders and new value propositions that deepen the relationships with intermediaries.Originality/valueThis research developed a framework with which to identify the factors that are mainly associated with motor insurance cancellation and to predict its likelihood.

scholarly journals Total Quality Management in an Insurance Company: Use of Balanced Scorecards to Meet the Interests of Stakeholders

2020 ◽  
Vol 14 (1) ◽  
pp. 39-54
Author(s):  
Lyudmila Tsvetkova
Keyword(s):  
Quality Management ◽  
Total Quality Management ◽  
Insurance Industry ◽  
Organizational Level ◽  
Insurance Companies ◽  
Free Access ◽  
Successful Implementation ◽  
Insurance Company ◽  
Total Quality ◽  
Market Growth

The insurance company is a financial intermediary between stakeholders - a set of participants in the insurance process and those who have received the right to insurance payment, as well as insuring parties who purchase insurance coverage and shareholders whose capital is involved in its guarantee. Satisfaction of stakeholders creates a company’s free access to exchanged resources, thereby optimizing operations and increasing the efficiency of capital use. The implementation of the Total Quality Management (TQM) system, which could help achieve the goal, is complicated in insurance companies by dividing the personnel who create the insurance service, by the factor of time, since it is possible to check the quality only after the client has used it, which does not always arise in insurance, and often by the factor of location of units at geographically different points, which makes it virtually impossible for the simultaneous and equal participation of personnel in production processes, that requires innovative management tools. The purpose of this study is to study the effect of introducing a Total Quality Management (TQM) system and a balanced scorecard (BSC) on the activities of an insurance company, including the one aimed at achieving the satisfaction of its stakeholders. Using the methods of induction and synthesis of freely available data of SOGAZ, Rosgosstrakh, and ROSNO companies, a complex of dependent corporate goals was identified that were ranked relative to the organizational level. The results of the study allow concluding that the concept of balanced indicators allows to indicatively monitor the quality of meeting the interests of the main stakeholders of the company, which creates new effective tools for improving resource exchange and does not allow distortions in management. The integration of strategic planning and TQM opens up new market growth opportunities for insurance companies in the context of a limited portfolio of services for a strictly limited audience. The paper provides specific recommendations for organizations to resolve problems that impede the successful implementation of TQM. The results of this study can be used by officials of insurance companies in developing strategies and tactics for their development, including the implementation of BSC and TQM, as well as scientists for a deeper study of the results of the implementation of BSC and TQM, both in the insurance industry and other sectors of the economy.

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