A σ-Convergence Model for Analyzing the Balance of Insurance Industry in China

There are significant regional differences in the development of China’s insurance industry. An important question is that such regional differences are expanding or shrinking? Based on Barrow’s economic growth convergence model, this paper uses the σ convergence model to analyze the differences in the development of China’s insurance industry and its trends. It draws on the statistics data from 1990 to 2020. The empirical results show that the convergence of China’s insurance development is not obvious before 2006, but it shows a significant convergence after 2006. And, there are some differences between the Eastern, the Central, and the Western. Furthermore, when considering the spatial correlation, the convergence of insurance development among provinces in China is more obvious. This shows that the flowing of capital, technology, and labor force between regions may be beneficial to the balanced development of insurance among the regions.

Information technology and insurance development in Sub-Saharan Africa

The study examined the relationship between information technology and insurance development in 40 sub-Saharan African countries during the period 2000-2017. The study employed System Generalised Method of Moment for the estimations. Life insurance premiums, non-life insurance premiums and total insurance premiums are used to measure life insurance, non-life insurance and total insurance, respectively. The information technology is measured by mobile phone, fixed telephone and Internet penetrations. The study found that the Internet promotes non-life insurance while its effect on life and total insurance is insignificant. The mobile phone produced a negative effect on life insurance, non-life insurance and total insurance. However, fixed telephone significantly contributed to life insurance, non-life insurance and total insurance. Based on these findings, there is a need for insurers to encourage their client to use information technology tools for insurance activities and also increase their interaction with their customers.

THE CURRENT STATE OF THE INSURANCE MARKET OF THE REPUBLIC OF BELARUS AND THE DRIVING FORCES OF ITS DEVELOPMENT

The article analyses the evolution and current state of the insurance market of the Republic of Belarus. The content and structure of the insurance market are characterized. The role of infrastructure links in the development of the external environment of the Belarusian insurance market is shown. It determines the promising directions of integration into the international insurance market. The main approaches to the system of state regulation of the insurance market and its compliance with international standards are analysed. The systematization of legal acts regulating relations in the insurance sector is carried out. The requirements for the formation of the authorized capital and conditions for the transfer of risks to reinsurance are justified. The analysis of differences in the level of insurance development among individual insurance companies in the Republic of Belarus, the structure of insurance premiums and payments is carried out. It is shown that insurance development depends on the effectiveness of the national economy development. The factors influencing changes in key performance indicators of the insurance market are identified. The necessity of activation of integration processes in the insurance sector is proved. The issues of assessment and monitoring of decision implementation of the EEU bodies in the national insurance legislation of the Republic of Belarus and selected country members of the EEU are considered. The main recommendations on the formation of the functioning mechanism of the unified insurance environment on the territory of the EEU are given. Drivers of the Belarusian insurance market development are defined.The article will be of interest to specialists engaged in studying the issues of state regulation of insurance activities as well as to state supervisory authorities when developing a set of measures for the development of the common insurance environment of the EEU and developing a strategy for the insurance industry development for the upcoming five-year period.

Innovative Opportunities for Insurance Development in a New Financial Paradigm

This article examines and analyses innovative opportunities for insurance development in Russia. Thanks to innovative opportunities in a new paradigm, it is possible to move from traditional insurance products to new ones, which in turn will become the basis for regional development. Based on the analysis of the current state of the insurance market, the authors have concluded that insurance products/services need to be continuously improved, which will allow insurance companies to increase the flow of insured, to maximize the financial results of insurance companies.