Insurance Policy

Jurnal ini menjelaskan tentang bagaimana pengembangan dan pengaplikasi kebijakan asuransi di AS, dimana AS dikenal sebagai negara dengan layanan kesehatan yang termahal.
Kadaan layanan kesehatan yang mahal ini ternyata berdampak hingga bangkrutnya perusahan-perusahan di AS hingga tingkat kematian di AS yang tinggi

Actuaries are professionals who apply mathematics to financial problems. They evaluate the financial implications of contingent events, in other words, events that are not certain to occur. They are often involved in managing the risks that can arise from undesirable contingent events. Actuaries evaluate the likelihood of future events. They also design ways to reduce the financial impact of undesirable events that do occur. To do their work, actuaries must have a high level of technical knowledge. For example, they need to understand the nature of insurance, the risks inherent in different types of assets, the ways in which statistical models can be used, and the legal and regulatory constraints that apply to the business. They must also have good business sense, problem solving skills, and the ability to communicate effectively with others. Their work often affects many stakeholders, so they must be able to balance different interests and observe high ethical standards in doing so...

If insurance policies were in plain language, policy-holders will understand them.
Click or copy this link for the article: https://obiterdictadotin.files.wordpress.com/2019/06/simplifying-insurance-policies-e28093-importance-of-plain-language.pdf

The article proposes that insurers should offer insurance policies in plain language. It discusses examples and illustrations from policies of health insurance. Using plain language will help the insured in understanding what he has bought, and also officers of insurance companies in taking fast and effective decisions. Shifting to plain language requires getting over the fear and anxiety of shedding legalese. The article also gives links to articles, handbooks and websites about plain language. The entire article is posted with permission from the IRDA Journal.

A growing body of literature examines the causal impact of financial literacy on individual, household, and firm level outcomes. This paper unpacks the mechanism of impact by focusing on the first link in the causal chain. Specifically, it studies the experimental impact of financial literacy on three distinct dimensions of financial knowledge. The analysis finds that financial literacy does not immediately enable individuals to discern costs and rewards that require high numeracy skills, but it does significantly improve basic awareness of financial choices and attitudes toward financial decisions. Monetary incentives do not induce better performance, suggesting cognitive constraints rather than lack of attention are a key barrier to improving financial knowledge. These results illuminate the strengths and limitations of financial literacy training, which can inform the design and anticipated effects of such programs.

Besides market risk, investments in emerging markets are also exposed to political phenomena that are not generally present in the more developed economies. This problem is well known to banks and multinational companies as country or political risk. Assessment techniques in these domains are relatively well developed but unadapted to portfolio investment in that they tend to ignore the diversification aspect associated with cross country correlations. In this paper we address the problem of political risk with cross country correlations. We develop a model for simultaneously measuring the cost of political risk in several countries that retains most of the characteristics of the single country risk model in terms of its ability to price political risk based on the stochastic process of exposure to loss and the expected frequency of loss causing events. It generalizes the one company-one country approach, however, in that a multivariate approach is taken and correlations across countries are considered directly. The technique developed here can be implemented into a decision support program, providing a feasible solution to the ongoing difficulty of apprehending the multivariate nature of political risk and integrating it into the process of portfolio management.

An exclusion period (usually from 12 months to 2 years) is usually found in life insurance policies as a precautionary measure to prohibit people from insuring their lives with the intent to kill themselves shortly thereafter. Several studies have been conducted to investigate the effect of exclusion periods on the risk of suicide among the insured in the US and Australia. However, while Hong Kong has experienced an increase in the number of suicides among the insured, little is known about the dynamic between the exclusion period and suicide in Asia. Here we make use of death claims data from one of the major life insurance companies in Hong Kong to ascertain the impact of a 12-month exclusion period on suicide risk. We also use utility functions derived from economic theory to better understand individual choices regarding suicide among the insured. More specifically, we sought to determine whether there is a greater risk of suicide immediately following the 12-month exclusion period. We also examined whether the risk of suicide claims was higher than that of other non-suicidal claims. The study period for this investigation was from January 1, 1997 to December 31, 2011, during which time there were 1935 claims based on 1243 deaths. Of these, 197 were suicide-related claims for 106 suicide deaths. The mean number of life policies held by suicidal claimants and non-suicidal claimants was 1.6 and 1.4, respectively. The average/median size of the claims (total payment made on all policies held by the insured life) was HK$665,800/426,600 and HK$497,700/276,200 for suicidal and non-suicidal deaths, respectively. The policy lifetime of the claims, or the number of days from policy issuance to suicide occurrence, ranged from 38 to 7561 days, with a mean of 2209 days, a median of 1941 days, and a standard deviation of 1544 days. The peak density of suicide claims occurred on day 1039 of the policy. Our results revealed that suicide claims tend to occur earlier than other claims and that there is a greater risk of suicide observed following the 12-month exclusion period. Some suggestions are made in terms of extending the exclusion period, which is anticipated to significantly reduce suicide at the global level.

This research intends to predict factors that drive consumer to buy insurance policy, based on consumer behavior model by Howard. In main variable used is buying decision. In addition, this study also includes information, brand image, confidence and attitude as the control variables. The analysis units are exclusive policy insured in Malang region. The data was collected using questionnaire. The t-test in simple regression models are used to test hypotheses. The research finds about: first, insignificant information to influence confidence and attitude, but statistically significant to influence brand image. Second, brand image are statistically significant to influence buying decision.

Purpose: This paper aims to explain new insurance products and policies in Rastin Profit and Loss Sharing (PLS) Banking. Rastin Banking is a full Islamic Banking System with all necessary parts for banking operations that can be installed in conventional and Islamic banks both. In this paper, we are going to explain the milestones of new insurance products and policies. Design: Rastin Banking complies with the nature of the intermediary financial activity and has a new type of banking operations. The systems and instruments of this type of banking have different risk treatments, and new insurance policy and measures should be defined to cover the risks of the operations In order to fulfill this goal, appropriate insurance policies are described. Findings: Some new insurance products are defined such as Certificate Insurance, Insurance of Market Value of

Free-look provisions in life and health insurance allow the insured to return the policy without giving reasons. This is easier said than done.
Click or copy this link for the article: https://obiterdictadotin.files.wordpress.com/2019/06/a-close-look-at-the-free-look-option-in-insurance-policies.pdf

“Free-look period” provisions in insurance policies give to an insured the very important right to withdraw from his insurance contract that he has already concluded, and give him time time for thought so that he can take a conscious decision about ending the insurance contract. Free-look period provisions are mandatory in life and health insurance policies. This article analyses free-look provisions in different statutory instruments that mandate the provision, and in sample policy wordings, brochures and free-look cancellation forms. This article examines the true purpose of this provision and its use, and proceeds to posit that this provision gives to the insured an additional right to withdraw from the contract, and that it does not and cannot have the effect of terminating or extinguishing the rights of an insured under law. It suggests a model standard free-look provision.

The disability insurance system in Chile is much less well-known than the pension part, but it is equally innovative. It differs from traditional public disability insurance in two important ways: 1) it is largely pre-funded-through the accumulation in the retirement account and later through an additional payment made when the person becomes permanently disabled, sufficient to cover a lifetime defined benefit annuity; and 2) the disability assessment procedure includes participation by private pension funds (AFPs) and insurance companies, who finance the benefit and have a direct pecuniary interest in controlling costs. Survivors' insurance is handled in the same way, through a combined D&S fee. We argue that pre-funding will raise disability fees in the early years of a new system as funds are built up but reduce them in the long run as benefits are covered out of accumulated funds. We further hypothesize that the participation of private pension funds in the assessment procedure will keep system costs low, by cutting the incidence of successful disability claims. Finally, we expect that these incentives will also lead to cost-shifting-to other AFP's by selection and to the public treasury via the minimum pension guarantee (MPG). Using simulations based on a special data set that was provided to us by the Association of AFPs and applying the Cox proportional hazard model to a retrospective sample of new and old system affiliates (ESP 2002), we conclude that these hypotheses are broadly consistent with observed behavior.

The disability insurance system in Chile is much less well-known than the pension part, but it is equally innovative. It differs from traditional public disability insurance in two important ways: 1) it is largely pre-funded-through the accumulation in the retirement account and later through an additional payment made when the person becomes permanently disabled, sufficient to cover a lifetime defined benefit annuity; and 2) the disability assessment procedure includes participation by private pension funds (AFPs) and insurance companies, who finance the benefit and have a direct pecuniary interest in controlling costs. Survivors' insurance is handled in the same way, through a combined D&S fee. We argue that pre-funding will raise disability fees in the early years of a new system as funds are built up but reduce them in the long run as benefits are covered out of accumulated funds. We further hypothesize that the participation of private pension funds in the assessment procedure will keep system costs low, by cutting the incidence of successful disability claims. Finally, we expect that these incentives will also lead to cost-shifting-to other AFP's by selection and to the public treasury via the minimum pension guarantee (MPG). Using simulations based on a special data set that was provided to us by the Association of AFPs and applying the Cox proportional hazard model to a retrospective sample of new and old system affiliates (ESP 2002), we conclude that these hypotheses are broadly consistent with observed behavior.

Purpose: This paper aims to explain new insurance products and policies in Rastin Profit and Loss Sharing (PLS) Banking. Rastin Banking is a full Islamic Banking System with all necessary parts for banking operations that can be installed in conventional and Islamic banks both. In this paper, we are going to explain the milestones of new insurance products and policies. Design: Rastin Banking complies with the nature of the intermediary financial activity and has a new type of banking operations. The systems and instruments of this type of banking have different risk treatments, and new insurance policy and measures should be defined to cover the risks of the operations In order to fulfill this goal, appropriate insurance policies are described. Findings: Some new insurance products are defined such as Certificate Insurance, Insurance of Market Value of Certificate, Responsibility/Engineering Insurance, Insurance of Accidents Concerning the Article of Sharing, Collateral Insurance, ...

This Brief addresses only the supervision of e-money issuing activities of a NEMI. It highlights the primary risks presented by NEMIs and concludes that the minimal supervision undertaken in the researched countries reflects two current realities: NEMIs are

Adoption of new agricultural technologies may be discouraged by their inherent riskiness. We implemented a randomized field experiment to ask whether provision of insurance against a major source of production risk induces farmers to take out loans to invest in a new crop variety. The study sample was composed of roughly 800 maize and groundnut farmers in Malawi, where by far the dominant source of production risk is the level of rainfall. We randomly selected half of the farmers to be offered credit to purchase high-yielding hybrid maize and groundnut seeds for planting in the November 2006 crop season. The other half of farmers were offered a similar credit package, but were also required to purchase (at actuarially fair rates) a weather insurance policy that partially or fully forgave the loan in the event of poor rainfall. Surprisingly, take up was lower by 13 percentage points among farmers offered insurance with the loan. Take-up was 33.0% for farmers who were offered the uninsured loan. There is suggestive evidence that reduced take-up of the insured loan was due to farmers already having some limited liability in case of default: insured loan take-up was positively correlated with farmer education, income, and wealth, which may proxy for the individual's default costs. By contrast, take-up of the uninsured loan was uncorrelated with these farmer characteristics.

Standard costing and variance analysis are long-established, traditional accounting models which were not originally designed for the service sector and were probably never applied to it. None the less, they provide an excellent basis for optimization, planning and analysis of collection costs.

In Hungarian: A normatív költségkalkuláció és eltéréselemzés egy nagymúltú, hagyományos, eredetileg nem szolgál­tatás-szektorra tervezett és használt számviteli módszer, ami kiváló alapot kínál a díjbeszedési költsé­gek optimalizálására, egyszerű tervezésére, elemzésére.

A growing body of literature examines the causal impact of financial literacy on individual, household, and firm level outcomes. This paper unpacks the mechanism of impact by focusing on the first link in the causal chain. Specifically, it studies the experimental impact of financial literacy on three distinct dimensions of financial knowledge. The analysis finds that financial literacy does not immediately enable individuals to discern costs and rewards that require high numeracy skills, but it does significantly improve basic awareness of financial choices and attitudes toward financial decisions. Monetary incentives do not induce better performance, suggesting cognitive constraints rather than lack of attention are a key barrier to improving financial knowledge. These results illuminate the strengths and limitations of financial literacy training, which can inform the design and anticipated effects of such programs.