Abstract: This paper studies a dual life insurance premium is determined with the combined status of last survivor and joint life involving two insurance participants who have a kinship relationship such as husband and wife, brother and sister, which they work in the same agency. In determining the policy to be made by the life insurance does not require two policies to be made, but enough to have only one policy. So that by having one policy expected premiums paid by life insurance participants to life insurance companies will be smaller than if you have to pay in two policies. Determination of insurance premiums dual life to be paid by an insurance party participant based on the chance of death from both life insurance participants, stating a condition that will continue as long as there is at least one member who is still alive and will cease after the death of the last person of its member, and also is an ongoing condition se long time all members of a combination of several people can survive and will stop after one of its members first dies, to determine the single premium and annual premium using the cash value of the initial life annuity from dual life insurance. Whereas the initial annuity cash value is influenced by the interest rate and discount factor and is also influenced by the combined life opportunity of the two insurance participants. Furthermore, from the chance of life will be obtained the chance of dying In formulating the chance of dying the insurance participant is used the Pareto distribution and to obtain the parameter values in the Pareto distribution the maximum Likelihood method is used. In order to obtain the chance of death and can be used to calculate a single premium and annual premium.
The aim of this research is to study the profitability of the insurance industry in Iran during the period of 20 years from 1993 to 2013. Research method is analytical and inductive post-event. Data related to the insurance and eco- nomic indicators are including the Premium of life insurance, Premium of non-life insurance, gross domestic product and inflation and profitability of Iranian insurance companies during the years 1993 to 2013 that were ex- tracted from the economic and insurance forms. The regression model and ARDL time series technique were used for data analysis. The research results showed that the Premium of life insurance has a positive effect on the profit- ability of insurance companies in Iran, but the Premium of non-life insurance has not had a significant effect on profitability, the economic indexes of re- search, namely GDP and inflation, have a positive and negative impact on the profitability of insurance companies in Iran, respectively.
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The sub-Saharan Africa countries has a combine popula- tion of 780 million is which is the ninth population of the world in 2011. With this population one might expect the sub-Saharan African to be one of the largest markets for insurance but the insurance sector only account for 0.2% of total world premium. The insurance penetration (pre- mium as percentage of GDP) in sub-Saharan is very low compare to other regions of the world. According to Swiss Re  between 2000 and 2011 the average grow- th rate of insurance premium in sub-Saharan Africa is 7.1% annually and in 2011 it reached about 8.9 billion USD. The oil producing countries and middle countries expe- rienced the highest growth of premium in sub-Saharan Africa. Based on Swiss Re report the six largest markets for insurance in Africa are South Africa, Nigerian Kenya, Angola, Namibia and Mauritius. These six countries have a combine market of 68%. The little fact provided shows that the SSA insurance markets sub-Saharan Africa are in a typical early phase of development, where the main focus lies on commercial lines of business in non-life and group business in life. Insurance penetration in SSA is very below the other regions of the world. However, it is only life insurance that is below expectation given the current level of income in Sub-Saharan Africa. Motor and business line related to the extraction of gas, oil and other renewable resources dominated while the personal non-life accounted for low percentage. The situation is not different in life insurance as individual take up of personal life insurance is very low while the group busi- ness dominates.
Personal data belonging to contracting party of the policy as well as to the insured party are provided in the insurance application. The contract stipulates several questions concerning the health condition of the insured persons, such as: whether he is exposed to serious risks in practicing his profession or apart from his work, whether he has suffered from a certain disease - Lung troubles, heart diseases, stomach complaints, pancreas, intestine, kidney or genital disorders, neuropsychical disorders, epilepsy, diabetes, arterial hypertension, tuberculosis, cancer or any other form of tumour, blood diseases, articular, osseous or skin diseases - or a surgical intervention, whether he was retired due to different health matters, if there were other life insurance petitions addressed to other insurance companies in the past and, moreover, if they were rejected or if there were penalties applied, questions regarding the medication frequency, drug and alcohol consumption, the existing of other life insurance policies.
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According to 2008 statistic world’s life premium stood at $2.5trillion from a total of $437trillion, which African’s record revealed a life premium of $37.9billion from a total premium of $54.7billion. In Nigeria, the life arm raked in 40.19billion out of a total premium of $1.24 billion in 2012. In developed economics that have strong insurance industries, the life arm usually derived the sector by contributing the biggest premium amount. For instance, South Africa, the largest insurance market in Africa has population of 40million people and contributed, 78.13 percent of the continent’s premium (Popoola, 2011). According to Popooal (2011), Nigeria has continued to record the lowest penetration level in Africa’s life insurance market, in spite of its huge population. Nigeria is the biggest life insurance market on the continent. He stated that, if the country’s life assurance business is well positioned, it can attain a leadership position on the continent. This research, therefore, is geared towards investigating the impact of life assurance business on the growth of Nigerian economy.
Czech Accounting legislation leaves in the balance sheet in the liabilities (in the section of foreign sources) in terms of technical reserves the privileged position to unearned premium reserve – it is listed on the ﬁ rst line. It is reported on a gross basis and also the eventual share of reinsurers in this reserve. The net amount is created by the diﬀ erence. In the proﬁ t and loss statement the unearned premium reserve is reported both in the part of the technical account of the life insurance and in the part of the technical account of non- life insurance in the form of the change of status of the unearned premium reserve (it is therefore a balance between creation and use of this reserve in the relevant ﬁ scal period). Although the gross method for accounting for the creation and use of reserve is used within CAL, in the proﬁ t and loss statement there is indicated the balance of reserve – the diﬀ erence between the creation and use, i.e. its ﬁ nal, current status.
For other life insurance products, as per GST rules, the value of services on which GST is to be imposed is calculated as the gross premium minus the amount allocated for investment. In case of single premium annuity policies, 10% of single premium is taxable. So, for an Rs 1 lakh premium, Rs 10,000 would be taxed at 18% now as against to 15% earlier. With the implementation of GST, a life insurance policy has now become dearer by 3 per cent. However, the amount of service tax will vary depending on the risk element embedded in the premium component and tax is levied only on the risk portion of the premium excluding the saving portion. As a result, the immediate impact of GST would be higher in term insurance and endowments plans. Life insurance provided by Government schemes are excused from GST. However, GST is not applicable on the following schemes.
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Liberalization means a free economy where one can work without direct control of the government. The insurance market which was totally monopolized by public life insurance company LIC (Life Insurance Corporation of India) before LPG, now competition by Private Life Insurance players affects the business of LIC. Under the process of LPG, In India the insurance industry is now open and the new foreign players with localized partnership have already started capturing the life insurance marketplace acquire. The internationally reputed foreign life insurance companies have given wide range of products, good service and aware the people for life insurance results the rapid growth in business. One estimate is that the in life insurance sector, private players have captured some 27% market share of total premium already by the year 2014-15. FDI in insurance sector was allowed 26% in 2000 and was increased to 49% in 2015. Only 4 private life insurance companies were registered in 2000 which is increased to 23 in 2015. So, in more than one decade private players have increased their market rapidly with 6156 offices in India. This is the reason; researcher is interested in finding the business performance of private life insurance companies in India.
There is little in the insurance literature on modelling how insurance premiums should be determined in a competitive market and how they respond to changes in the levels of premiums being offered by competitor companies (Daykin et al. 1994). Despite the fact that underwriting cycles in non-life insurance are known to be present and an objective analysis is needed for properly formulating underwriting strategies rather than just following the trends, such an analysis has not been done so far. It is widely observed that for a number of years premium rates decline to a point where the market, on average, is underwriting at a considerable loss, followed by a reverse trend of large increases in premium rates to the point where the market is making a substantial profit. During these underwriting cycles, it is observed that, individual insurance companies are following the market with their premium rates declining when the market average premium rate declines and increasing when the market average premium rate increases (Cummins and Outreville 1987, Daykin et al., 1994). A question arises here: What is the optimal premium strategy for an individual insurance company and how is this related to the market? This leads to the conclusion that there is a wide scope for investigation of this area.
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Forte (2(105) conducted a study on Rural insurance market. Accordingly to the findings of the study, the more educated have higher earnings capabilities and are potential insurance customers. The usual scenario seems to be where the chief wage earner insures himself, thus protecting his family and his wife in the beneficiary. Majority of the respondents were able to name the types of policy but could not recall the actual name of the policy. Most had purchased the money back policies and penetration of whole life policies was very low. Policies with a sum assured of less than Rs. 50,000 accounted for the most policies taken. A significant number also opted for a higher value policy of upto Rs. One lakh. There was a great deal of similarity between the policy actually purchased by the respondents and the policy recommended by the agent at the time of purchase, suggesting that a great influence is exercised by the agents in the selection of insurance products. Policy-holders were generally satisfied with the overall insurance process, the premium payment process and their dealings with the agent. This may also suggest that consumer’s expectations are not very high. It is found that insurance companies have to create awareness about security and savings involved in insurance and develop the felt need among these potential customers. Some people wrongly believe that life insurance offers better return on savings, as they may not be aware of correct rate of interest offered by banks and post office. In case of private institutions (private banks and the NBFCs), the perception of security is generally low 51 .
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Since insurance operates through pooling resources, the majority of insurance policies are provided for individual members of large classes allowing insurers to benefit from the law of large numbers in which predicted losses are similar to the actual losses. Exceptional includes. Lloyd’s of London which is famous for insuring the life or health of actors, sports, figures and other famous individuals. However, all exposures will have particular differences, which may lead to different premium rates. Definite loss- The loss takes place at a known time, in a known place and from a known cause. The classic example is death of an insured person in a life insurance policy. Ideally the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information could objectively verify all the three elements. Accident loss- The event that constitutes the trigger of a claim should be fortuitous or at least outside the control of the beneficiary of the insurance. The loss should be pure in the sense that it results from an event for which there is only the opportunity for loss. Large loss-The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administrating the policy, adjusting losses, and supplying the capital need to reasonably assure that the insurer will be able to pay claims for small losses; those latter costs may be several times the size of the expected cost of losses. There is hardly any point in paying such costs unless the protection offered has really value to a buyer. Calculable Loss- There are two elements that must be at least estimable, if not formally calculable the probability of loss and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to-do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with acclaim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim. Affordable Premiums- If the likelihood of an insured event is too high, or the cost of the event is so large that the resulting premium is large relative to the amount of protection offered, it is not likely that the insurance will be purchased, even if on offer. Further as the accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer if there is no such insurance, but not the substance.
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actuarial model of life insurance with payouts increased for fuzzy process is formulated in Section 4. Some actu- arial formula of pure premium of the n-year continuous life insurance model is discussed in Section 5, as dis- count factor is a fuzzy process. Finally, some remarks are made in the concluding section.
As the leading product of the life insurance industry in China, since 2002, the proportion of participating insur- ance premium income in the total premium income of life insurance has been more than 50% for a long time. It was up to 57.09% in 2008. Therefore, how to design a reasonable personal income tax system on the dividend income from participating insurance has a significant impact on the stable development of China’s life insur- ance industry and even the insurance industry. The pre- vious research in this area is mostly limited to the discus- sion of whether to levy tax, but lacks systematic study and plan design on the tax system. This paper designs a concrete plan on how to levy personal income tax on participating insurance in China; at the same time, the paper analyzes the possible impact and makes a empiri-
By analyzing Figure 3, we can know that, in the short term, a standard devia- tion from health insurance premium income against life insurance, property in- surance, accident insurance’s has a strong response immediately. Income added value is roughly the same, about 0.5, but the impact of the time is not long, to phase 3 has returned to the original level. After a slight decline, it is basically sta- ble, which shows the life insurance industry, property insurance industry, acci- dent insurance industry is subjected to an impact of external conditions. Through the market to pass to the health insurance industry and make the health insurance industry a co-impact, and this impact plays a dominant active role. Meanwhile, after the current issue of health insurance premium income is processing a positive impact, life insurance premium income, property insur- ance premium income and accident insurance premium income. And income itself will fluctuate violently during the first 3 period and begin to stabilize after the 3 period, which shows that a certain impact of the health insurance industry will also give life insurance industry, property insurance industry, accident in- surance industry and its own impact on the same, which is to produce a pull.
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Actuarial methods for determination of estimated pre- mium impact for these reports appear to be somewhat inconsistent. For example, whereas the percent of total contract claims for individual policies is relatively level at 0.04–0.06 % over the 10-year study period, the estimated premium impact ranges between 0.14 and 0.64 % for the same policies. Reporting instructions 11 require “for the purpose of this report it is required that a dollar amount [of the annual premium for each policy] be assigned to each benefit and provider based on the company's actual claim experience, …”. In the individual health insurance market, the percent of premiums used to pay claims typically ranges from about 70 to 85 %. 14 It is therefore hard to reconcile the estimates of premium impact that is 3–10 times the claim costs attributable to lymphedema treatment. For this reason the collected actual claim costs and utilization data are more to be trusted than the esti- mated premium impact.
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An evaluation on the influence of the co-insurance of large risks of alliance partners on performance of insurance firms in Kenya was conducted. R 2 was 0.876 indicating that 87.6% of the variation in firms’ performance can be explained by a unit change in co-insurance of large risks. The remaining 12.4% is explained by other independent variables. The results on the beta coefficient of the resulting model showed that the constant was 1.933 which was significantly different from 0, since the p value of 0.000 was less than 0.05. The t value for the constant was 12.775, while the t value for the co-insurance of large firms was 24.739, which indicated that they were significant. The results of ANOVA test showed that the F value was 807.571 with a significance p value of 0.000 which was less than 0.05, meaning that the null hypothesis was rejected and the conclusion was that co-insurance of large risks significantly affects the performance of insurance firms in Kenya. Also, correlation results showed that there was a strong positive relationship between co-insurance of large risks and performance. This relationship was illustrated by correlation coefficient of 0.936 at 0.05 significant levels.
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Telematics data usage has been adopted in various forms in our everyday life. Telematics has been introduced in the insurance industry for underwriting decisions, risk vectors and exposure evaluation. It has been proven (Paefgen J, University of Allen; 2013) that in-deed telematics provides for the inconsistency of information between the insured and insurer. In Kenya, the Insurance industry is regulated and the premium rate is defined by the state agency (IRA) Insurance Regulatory Authority, which in most cases does not represent the true risk index of a motor vehicle driver or a policy holder. The current fixed rate pricing of auto insurance is therefore inefficient and actuarially inaccurate since motorists in different risk classes are subjected to pay the same amount of premium rates regardless of the number of times or frequency they are on the road, their driving behavior, geo-location and how often they are on the road (Litman 2008). Thus, this research proposes a risk rating model and prototype system based on Telematics that takes into consideration causal data that is not factored into in the common conventional risk rating model as proposed and enforced by the regulatory body Insurance Regulatory Authority (IRA). These are;
industry and the economy of the country in overall can benefit under this system. Meanwhile, Georgia should take advantage over experiences of other countries with DIS and take into consideration all the important elements of the system to create and implement effective deposit insur- ance system. As noted above one of those important fea- tures of DIS and the subject of discussions when speaking about effectiveness of the system is risk-based insurance premium. Consequently, the insurance premium, its ef- fectiveness and probable reaction of Georgian depositors toward this element of the system have to be one of those important issues that should be discussed before insurance system is implemented.
In terms of number of persons covered under health insurance, three-fourth of the persons are covered under government sponsored health insurance schemes and the balance one-fourth were covered by group and individual policies issued by general and health insurers over the period. The highest no. of persons covered i.e. 33.50 Crore persons with 77% market share registered in Government Sponsored Schemes including RSBY during 2106-17 and the least no. of persons covered is found as 2.06 Crore persons with 10% market share in individual business during the 7 years period. The average analysis shows that the no. of persons covered is also highest i.e. 17.06 Crore
As with many flexible benefits plans, the employer provided a partial subsidy to the purchase of health insurance. In this case, the employer paid the full cost of a catastrophic FFS plan. If employees elected a more generous FFS health plan with a lower deductible or any of the 50 HMOs offered, they were required to pay the additional premium cost either through credits or pay- roll deductions. We used data from the 3-year period of 1989 through 1991. While these data are old, this peri- od has the advantage that it was a time of large premi- um increases, both within and across plans. It also is comparable to periods covered in other studies.