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Literature Research Review of premium income and claims expense on risk based capital and profit of life insurance companies in Indonesia for the 2016-2020 period is a study that aims to test the hypothesis of the influence between each variable used in research that will be investigated by further researchers, within the scope of Management science. Finance. The writing method used in writing this Literature Review article is using the library research method, which is sourced from online media such as Google Scholar, Scribd, online journals and other academics. The results of this Literature Review article are: 1) Premium income has an effect on RBC; 2) Claim expense affects RBC; 3) Premium income has an effect on profit; 4) Claim expense affects RBC; and 5) RBC has an effect on profit. Apart from the 2 variables, namely premium income and claims expenses that affect the RBC and profit variables, there are other variables including investment returns, technical reserves, and underwriting results. [ABSTRACT FROM AUTHOR]

This paper investigates the asymmetric and nonlinear transmission of real output and economic policy uncertainty to insurance premiums for the US economy over the annual period of 1980–2014. Using the most up-to-date nonlinear autoregressive distributed lags framework, we simultaneously examine short- and long-run asymmetric responses of insurance premiums through positive and negative partial sum decompositions of changes in the explanatory variables. Our empirical results reveal that real output and economic policy uncertainties both affect insurance premiums in an asymmetric and nonlinear manner, but the transmission mechanism is not the same. As to the impact of real output, we find that an increase in real output leads to enhancing the insurance premiums, while a decrease in output has a greater impact causing insurance premiums to move down. For the impact of economic policy uncertainty, the results also suggest that total and non-life insurance premiums increase with rising uncertainty, while life insurance premiums decrease with rising uncertainty. These results have significant implications for insurance-related econometric analysis, investment decisions, forecasting, and policy-making. [ABSTRACT FROM AUTHOR]

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• The QARDL approach is used to explore the asymmetric and nonlinear effects of economic policy uncertainty (EPU), climate policy uncertainty (CPU), and geopolitical risk (GPR) on China's life insurance premiums (LIP). • EPU negatively affects LIP in most cases except the lowest quantiles. • GPR has a negative influence among the higher quantiles. • The negative effects of CPU on LIP are significant mainly in higher quantiles. • Investors and firms treat life insurance products as secure assets when policy instability and geopolitical issues become serious. This study explores the asymmetric and nonlinear effects of economic policy uncertainty (EPU), climate policy uncertainty (CPU), and geopolitical risk (GPR) on China's life insurance premiums (LIP) by using Quantile Autoregressive Distributed Lag (QARDL) approach across different quantiles of LIP. The results show that EPU negatively affects LIP in most cases except the lowest quantiles, GPR has a negative influence among the higher quantiles, and the negative effects of CPU on LIP are significant mainly in higher quantiles. The findings suggest that investors and firms treat life insurance products as secure assets when policy instability and geopolitical issues become serious. [ABSTRACT FROM AUTHOR]

This paper studies how ambiguity aversion affects the pricing of mortgage insurance (MI). We consider pricing-kernel ambiguity arising from market incompleteness. This ambiguity model is applied to a standard framework of MI-ML (mortgage loan) structural pricing. Our quantitative results show that insurers' ambiguity aversion generates substantial positive effects on MI premium. Ambiguity impacts are highly sensitive to loan-to-value ratio, ambiguity magnitude, and the tightness of information constraints. By using the U.S. city-level housing and mortgage data, we estimate that, on average, ambiguity aversion increases MI premium rate by 77 % (46 bps), and explains about 60-90 % of pricing errors. [ABSTRACT FROM AUTHOR]

Standard actuarial theory of multiple life insurance traditionally postulates independence for the remaining lifetimes mainly due to computational convenience rather than realism. In this paper, we propose a general common shock model for modelling dependent coupled lives and apply it to a life insurance model. In the proposed shock model, we consider not only simultaneous deaths of the coupled members due to a single shock (e.g. a critical accident), but also cumulative effect in the mortality rate when they survive shocks. Under the model, we derive a bivariate lifetime distribution and its marginal distributions in closed forms. We study the bivariate ageing property, dependence structure and the dependence orderings of the lifetime distribution. Based on it, we investigate the influence of dependence on the pricings of insurance policies involving multiple lives which are subject to common shocks. Furthermore, we discuss relevant useful stochastic bounds. [ABSTRACT FROM AUTHOR]

This paper firstly presents the development trends of the insurance market in Bosnia and Herzegovina in the period 2004-2015 measured by the indicators of density and insurance penetration, and then it presents the research concerning the factors that have a major impact on the development of the insurance market, as well as research related to the examination of the impact of insurance on economic growth. One of the aims of the paper has been to check whether the results of the scientists who examined the interrelationship of insurance market development and economic growth in different countries and at different time periods would be confirmed for the market of Bosnia and Herzegovina. [ABSTRACT FROM AUTHOR]

This paper investigates the variables driving the demand for life insurance in Tunisia based on annual macroeconomic data spanning the period from 1990 to 2014 and collected from the Swiss Reinsurance company and the World Bank's databases. We provide a characterization of the Tunisian life insurance sector and a comparison to some emerging markets. Empirical results show that life insurance demand increases with income and financial development. However, other economic variables such as inflation and interest rate do not seem to influence life insurance consumption in Tunisia. Socio-demographic variables such as dependency, life expectancy at birth and the country's level of urbanization stimulate life insurance demand, while the level of education dampens it. Finally, pension expenditures have a negative effect on life insurance consumption confirming the substitution by social security system for private insurance. [ABSTRACT FROM AUTHOR]

Extremely low or negative interest yields of fixed-income securities present significant hazards for life insurance firms. To address stringent regulations, life insurance firms invest a significant proportion of the security premiums in interest-bearing long-term debt instruments. The authors of this study discuss the adverse effects of negative interest rates for a hypothetical insurance firm and provide calculations to show how the premiums on life insurance products and policy reserves may be changed to mitigate the effects of negative interest rates. [ABSTRACT FROM AUTHOR]

India currently accounts for about 2 per cent of the world's life insurance premiums, although being the second most populated nation. Privatisation and product innovations have provided lot of choice for the customers. Life insurance Corporation of India (LIC) is currently market leader with nearly five decades of existence and enjoys enormous trust among the investors. Current study aims to explore the influence of demographic and psychographic variables on life insurance purchase as there are very few studies conducted in the Indian context. The study using robust method of logit regression, finds that demographic variables (age, tax assesse and non-tax assesse, and age) are found significant when predicting preference towards LIC and private life insurance organizations. [ABSTRACT FROM AUTHOR]

After liberalisation, India's life insurance industry has grown rapidly, in terms of products, policies and premiums and now strives to tap the huge potential opportunities. During the period 2000- 01 to 2011-12, the industry registered a CAGR growth of 21% in total premium and 25% in new business premium collections. This impressive growth was driven by entry of new players and evolution of new channels for distribution of products. The bancassurance channel 'Corporate Agents-Banks' helped the new insurer in selling insurance policies through banks, which more cost efficient and also logical to tap the market quickly. In Budget 2013-14, Finance Minister announced to permit banks to act as insurance broker, to increase the insurance penetration, which is around 4% and is much lower than developed market levels of 9-10%. Consequently, RBI and IRDA came with two different draft guidelines on 'Entry of Banks to Insurance Broking Business'. RBI's new norms are austere for the banks to motivate to enter to the new untapped business segments by way of broker. As per new guidelines, a number of small size banks are ineligible to conduct the insurance broking business and large banks are almost conducting insurance business through a subsidiary. Moreover, on an average, less than 2% of a bank's profit comes from selling insurance policies. So, if one accounts for the cost involved for banks to set up separate departments and train their staff for insurance broking, it does not seem a viable option. Further on 24 Dec. 2013, Finance Ministry issued a circular to PSBs to set-up a subsidiary that would force the banks to relinquish exclusive tie-ups with insurance firms and instead sell products offered by multiple insurers. The small banks fear that floating a subsidiary to sell insurance products and ending the exclusive arrangements with insurance companies, and breaking these agreements may be difficult. [ABSTRACT FROM AUTHOR]

The article presents an intuitive analogy between credit default swap (CDS) and life insurance premiums, to debunk the belief that CDS implied probabilities provide unbiased estimates of a corporation's or a sovereign's actual default probabilities or credit risk. It also highlights a life insurance premium model in a competitive economy. It also examines life insurance companies that are always solvent and insolvent with a positive probability.

Insurance market of Southeast European countries is characterized by significant changes due to uneven economic growth and development. At markets of developed countries, life insurance premium has the leading position in total insurance premium. Due to insufficient economic development of Montenegro, and inadequate awareness and distrust of citizens, compulsory insurances make the biggest part in the total portfolio of the insurance market in Montenegro. The insurance industry was not fully exposed to crisis and drastic changes have not been expected within this type of industry. The global financial crisis did not have a direct negative impact on the insurance market in Montenegro, but rather the indirect one that may be identified through the decline in purchasing power of citizens, decrease in the lending activity of the banks, and through possible recession. Since the financial markets both in Montenegro and in the region are not sufficiently developed, the insurance companies were not able to invest funds in sophisticated securities and financial derivatives, while the Law on Insurance, on the other hand, limited the companies to invest available monetary assets in risky securities, such as stocks. Insurance development trends primarily depend on economic growth, while strict rules and other regulations dominantly affect the improvement and development of insurance market in every country. Therefore, the control of business of insurance companies, licensed brokers and insurance agents, directing insurance companies to invest free funds into non-risky forms of property and adequate promotion of insurance activities can provide reduction in negative impacts of economic events, i.e. affect insurance companies so that they realize the best possible business results in this and later period. [ABSTRACT FROM AUTHOR]

This article describes a method by which to disclose the realized rate of return for retirement accumulations, savings accounts and the savings component of universal life insurance policies. The items of information needed for this approach are the account balance at the beginning of the period of analysis, the date and the amount of each deposit or withdrawal made during the period and the account balance at the end of the period. The realized rate of return may be expressed as an annual percentage yield or as an annual percentage rate.

This article comments on an article about the impropriety of life insurance price disclosure. Since the National Association of Insurance Commissioners is presently considering the adoption of a ratio index to be used within a system of price disclosure in life insurance, it is particularly timely to consider the merits of ratios as net cost indexes. Ratios are only one of a number of different classes of net cost indexes. Attention will be confined here to one particular ratio index. However, the results are generally applicable to most ratio measures that have been suggested for comparing life insurance benefits to costs. It should be roughly true that for any given price structure, a change in the premium base should produce about a proportionate change in the benefits under the policy. In other words, if the present value of premiums is increased by some positive constant, one would expect the present value of benefits under the policy to increase by roughly the same constant. Some empirical evidence indicates that rank reversals actually do occur for life insurance policies when they are ranked by the benefits-premiums ratio and by the excess of benefits over cost. The ratio of discounted benefits to discounted premiums has been demonstrated to be of limited usefulness in a system of price disclosure because it is subject to manipulation and cannot be reliably used as a means for comparing or ranking various life insurance alternatives, even of the same generic type.

The article provides an overview of universal life, an alternative product derived from traditional life insurance in the United States. It traces the evolution of universal life. Then, it cites the provisions of universal life insurance policies such as the death benefit always exceeds the reserve from the policy's inception through its maturity and the minimum guaranteed cash values and reserves are based on the Commissioner's 1958 Standard Ordinary Mortality Table. The mechanics of the operation of universal life include flexible premiums; adjustable death benefit and excess interest and lower than guaranteed mortality charges. Finally, it addresses several issues confronting the insurer, the agent and the policy holder of universal life. These issues include how universal life will be treated under the federal income tax law; the need for sophisticated, expensive data processing support systems; lower agents' commissions and the replacement of existing policies.

The article analyzes the relationship between rates of return calculated using the Linton yield method and interest-adjusted surrender costs by examining this relationship for a variety of different face amounts and issue ages. It is based on Harold G. Ingraham Jr.'s study "An Analysis of Two Cost Comparison Methods—Interest Adjusted Cost vs. Linton Yield." The findings show that, at least with regard to continuous premium whole life products, policies are ranked very similarly, if not identically, by either the 20 year Linton yield method or the 20 year interest-adjusted cost method. In addition, the results offer a potential compromise solution to the industry-Federal Trade Commission debate over the appropriate cost disclosure indexes for inclusion in the policy summary provided to prospective purchasers of life insurance.

In this paper, the relationships between life insurance premium expenditures and various economic and demographic characteristics of households are examined in the context of cross-sectional data. Income, net worth holdings, and stage in the life cycle of the household and education and occupation of the household head are generally determined to be significantly related to premium expenditures. Estimates of the variable coefficients in a linear model and estimates of the income elasticity of premium expenditures are provided. [ABSTRACT FROM AUTHOR]

The techniques of calculating premiums have been so well described in technical actuarial journals in this country and abroad that there is little that is new that can be reported in this paper. The best that can be done at this juncture is to set forth the sources of data used, some of the principles that are inherent in the rating process and to illustrate the usual approaches by which the job is done as a practical office operation. The elementary textbook approach to "gross" premiums is often an explanation that a loading" is added to the "net" premium and that the result is a "gross" premium. Elementary textbooks do not ordinarily delve very deeply into the area of how the mortality table is selected nor how the amount of loading is determined. In fact, there are implications in some cases that loading is added to the valuation net premium by means of a mathematical formula, sometimes of a relatively simple form, and that the gross premium emerges automatically.

This article presents some price information on split life in relation to similar information on conventional straight life policies. A split life plan with 100,000 U.S. dollars of term insurance and a 1,000 U.S. dollars annual premium annuity provides a larger protection element, a smaller savings element, and lower premiums than a 100,000 U.S. dollars straight life policy. The results of this study, however, suggest that the price structure of the split life plans studied is not greatly different from reasonably competitive straight the policies. In all of the split life plans studied, the annuity portion shows a substantial company retention. In most of the split life plans studied, the term insurance portion is essentially a giveaway.

The article investigates to what extent a life insurance company's income tax depends on its premiums and assets in the United States. It traces the history of the federal income tax on life insurance companies and the 1959 Act. It presents three cases which illustrate the dilemma facing the life insurance companies. It claims that these cases were lost because the life insurance industry permitted the litigation to be conducted in the wrong arena, by the wrong team and the wrong arguments. It also shows the intervention of the major life insurance company trade associations in the litigation. Lastly, the article suggests that the real and basic issue in the litigation is the meaning of the statute's own definition of the term "assets."

The primary purpose of this study is to search for the factors influencing the level of contractual saving. Tests of significance are applied by comparing the coefficients of the selected variables in multiple regressions with their respective standard errors. The study is concerned with the aggregate amount of contractual saving rather than with only one of its components. Also, the population is divided into a low-income group and a high-income group with separate analyses for each. The analysis of contractual saving is becoming increasingly important since the trend of contractual saving as a per cent of total saving is upward. In 1949, contractual saving was almost as large as total saving since discretionary dissaving largely offset positive discretionary saving. In explaining aggregate contractual saving both for the high-income group and for the low-income group, our basic theory was clearly confirmed. Disposable income, marital status and the presence or absence of children, and educational level all proved to be significant. The power of their influence was in the order stated with disposable income dominant.

This article presents a response to a commentary about disclosing life insurance pricing. There is a possibility that an insurer might manipulate a ratio by enlarging the numerator and the denominator but three points should be noted. noted. First, although there appears to be a lack of effective price competition in the life insurance business, there is some evidence to suggest the existence of premium competition. To the extent that premium competition exists, companies would be restrained from manipulating ratios by enlarging both premiums and benefits. Second, the range of potential manipulation may not be large relative to the range of ratios among different companies. Similarly, even if the value of the premium increase only slightly exceeds the increase in the value of the benefits, the insured might be considered better off because the expense of the increased benefits is less proportionately than the expense associated with the other benefits of the policy. Price comparison techniques should be used only for comparison of similar policies. The decision on policy type should be based on other considerations.

The article discusses how individuals can make the most of their life insurance benefits. A comparison between the premiums of term insurance and most permanent life insurance is presented. It is explained that life insurance can be considered as an effective asset protection strategy through various reasons including the fact that its cash value is shielded from creditors. It is also added that variable life insurance permits insurance policyholders to control their cash value investments.

Reports the results of several medical studies conducted in December 2003. Effect of obesity on life insurance premiums; Replication of the process that spiders and silkworms use to make strong silk fibers; Increased bedbug activity in 2002.

The article discusses wage agreements of April 1957 between the Federal Republic of Germany and the Wage Collective of German Provinces, the Public Service, Transportation and Commerce Union, and the German White Collars' Union. The contracts specify the amounts and conditions of employer contributions to employee life insurance premiums.