IRANIAN JOURNAL OF INSURANCE RESEARCH (SANAAT-E-BIMEH)
Year:2020 | Volume:35 | Issue:3|Papers Count:7

Objective: The insurance industry is highly competitive and rapidly maturing. The organizational structure and resources of companies lead to different Value Creation. Insurance companies should take advantage of all opportunities available to gain customer confidence and attract customers. Nowadays, if an organization fails to create value for its customers, it will disappear from the market. Hence, creating value for customers is one way to create competitive advantage in today's highly competitive market Keller believes that one of the ways to gain competitive advantage in today's highly competitive market is to create brand value. Therefore in this industry, creating brand value in shaping competitive advantage should be one of the most important requirements of insurance managers. The purpose of this study is to present a model of brand value creation in the insurance industry with emphasis on life insurance Method: The research method is a qualitative one with the Grounded Theory approach. The research population consisted of the life insurance managers of Sina. Passargad & Iran insurance companies. The researcher was using theoretical sampling and he did 17 interviews to get the data he needed to analyze. Finding: A conceptual model was developed using open, axial, and selective coding of the qualitative data. This model is consisted of six dimensions and twenty-seven subsconstructs. Conclusion: The most important ways to reduce the effect of inflation on life insurance premiums is to increase the annual premium in proportion to the inflation rate. The insurance premium and annual insurance obligations should be increased over the year by specifying the "premium adjusting rate" or "insurance capital" in the contract in order to assure the value for the customer.

Objective: The risk involved in entrepreneurial activities and the problem of financing in the field of entrepreneurship are two major challenges for the development of entrepreneurship. However, the development of the insurance industry as a critical institution for reducing financial risk, as well as the institution of investment help address these two challenges. Methodology: This research using the panel data and generalized moment method, has estimated the effect of insurance penetration on entrepreneurial space in two groups of selected developing and developed countries during the period 2013-2018. Findings: The results showed that the effect of insurance penetration on entrepreneurship in both groups of selected countries is positive and significant. besides, the effect of control variables including human capital, Research and Development (R&D), economic freedom, information and communication technology and financial development on the entrepreneurial environment in both groups of selected countries is positive and significant. Conclusion: Increasing the share of insurance in the economy of selected countries has helped to improve the entrepreneurial environment. Therefore, increasing the insurance penetration rate should be considered by macroeconomic policymakers in selected countries as a way to develop the entrepreneurial environment.

Objective: Information asymmetry and its problems are one of the most important issues in the insurance industry. Asymmetric information between insurer and insured can severely affect insurance companies' profit and pose significant risks to them. One of the most important risks arising from asymmetric information is adverse selection risk. Adverse selection is the tendency of high risks to be more likely to buy insurance or to buy larger amounts than low risks. Adverse selection is an important source of inefficiency in insurance markets. In this regard, the main purpose of this study is to investigate the risk of adverse selection in Iran's health insurance industry. Methodology: In this study we use a model of demand for health services to incorporate the essential features of asymmetric information in health insurance markets. This model is based on the work of Bajari et al. (2014) and Culter & Zeckhauser (2000). The used data is extracted from the cost and income inventory of the urban and rural households in Iran in 2016. In order to test the existence of adverse selection in the Iranian health insurance industry, at the first step, using the nonlinear least squares (NLS) method the demand function for health services is estimated, and employing the estimated parameters, the latent health status variable of each household is obtained. Afterwards, the latent health status distribution between the two groups of insured and uninsured households are compared using Kolmogorov-Smirnov statistic test. Findings: The result of the two-sample Kolmogorov– Smirnov test shows that the distribution of latent health variable is not equal in two groups of insured and uninsured households. In other words, there is a significant difference between the health status of insured and uninsured households. As well as, a comparison of the distribution of latent health status between insured and uninsured households shows that on average the level of latent health of insured households is lower than that of uninsured households. Therefore, existence of adverse selection in the Iranian insurance industry is confirmed. Also, according to the results, the risk aversion parameter of households for consumption of health services (􀟛 􀬶 ) equals to 0. 1109 and for consumption of other goods ( 􀟛 􀬵 ) is equal to 0. 0226. This result implies that households are more risk averse with respect to health status than to the aggregate consumption commodity. Conclusion: The results confirm the existence of adverse selection in the Iranian health insurance industry. In addition, the results show that risk aversion for the consuming health services is higher than other goods consumption. Therefore, it is essential that health insurance companies plan and act to reduce the risk of adverse selection. We also presented some strategies to minimize the adverse selection risk.

Objective: Market segmentation in the marketing management process, affects market mix including product, price, distribution and advertising. Proper implementation of this process will help the marketers understand customers well and as a result, meet their needs through desining a better marketing mix. the purpose of this paper is the segmentation of Auto-hull insurance in Iran’ s insurance industry. Research method: This applied research is conducted using quantitative data gathered from library and the databases. The statistical population of this research was customers of Auto-hull insurance of one of the biggest insurance Company in Iran with 20, 000 customers. Sample size of this research was 972 and sampling method was snowball sampling. The variables of age and value of the car, number of cylinders, usage, method of premium payment, history of previous damages and duration of the insurance policy was used to segment the market. Findings and Conclusion: Data was analyzed by two-stage cluster analysis and four segments were identified. The insurance company should consider cluster one as the market target, which is the largest cluster available and according to its characteristics, they use cars for office and corporate affairs. Hence, this company should use B2B strategies. Strategies such as selling this type of insurance along with other insurance policies to the company, considering special facilities and discounts or direct sale can be used to attract customers of this segment.

Objective: This paper analyzes the possibility of publishing mortality bonds. This class of securities provides attractive investment opportunities for capital market and is a good hedging tool for managing the risk of life insurance companies. It allows the insurers to access a new source of financing and provides some facilities for investors to diversify their portfolios. Methodology: It is required to predict future rate of mortality in order to conduct pricing of mortality bonds. We used lee and carter model simulation mortality rate, as it is very flexible and can be used for limited data. First, the mortality rate of 5_ year age groups for years between 1996 and 2016 was calculated. The reason for using Gregorian calendar is that we use the united nation’ s database. With Singular Value Decomposition (SVD), Lee-Carter model parameters were estimated and we have produced various scenarios for Iran’ s mortality index for the next three years using the Monte Carlo simulation. In the last step, a sensitivity analysis for the interest rate and catastrophe threshold was provided to examine the price response to changes in interest rates and changes in the threshold. One of the characteristics of the q-forward contracts if that they can be used for hedging both mortality and longevity risk. Mortality risk refers to the risk that mortality rates are higher than expected whereas longevity risk refers to the risk that mortality rates are lower than expected. A q-forward is an agreement between two counterparties to exchange at a future date (the maturity of the contract) an amount equal to the realized mortality rate of a given population at that future date (the floating leg), in return for a fixed mortality rate agreed upon at the inception of the contract (the fixed leg). In principle there are hedgers who are interested in both sides of the trade of a q-forward contract. Finding: The result shows that at maturity of three-year mortality bonds, increasing the interest rate, will rise the prices of these securities. Moreover, as the threshold grows, the price of these securities also increases; it is because the probability of default by issuer is reduced. Furthermore, by keeping other conditions constant, if the issuer determines the threshold range to two units, the price of these securities is reduced. Ultimately, the result shows that there is a small possibility of issuing these papers in the Iranian financial market. Conclusion: In addition to introduction of mortality bonds which is an available investment instrument in global financial markets, this study aims to investigate possibility of issuing it in Iran and also overview the pricing of these bonds for domestic investors and issuers based on earnings discount approach.

Objective: In the present study, the theory of deduction of Wergild for deliberate homicide as one of the new jurisprudential and legal perspectives on the issue of Wergild in all types of homicides, including homicides in traffic accidents, and its impact on legal obligations Companies active in the field of third-party insurance have been examined with the aim of inspiring the legislative body to amend the relevant laws and regulations. Method: The present study was conducted using a descriptive-analytical method through searching in library sources including Acts and Rules, jurisprudential and legal books, articles and other related databases. Finding: The results of this study confirm that the Islamic jurisprudence has condemned the principle of condemnation of blood feuds during the prohibited months, but there are differences of opinion regarding the scope of its condemnation on all types of murders as well as on the underlying crimes. It has accepted murder of all kinds. However, the innovative achievement of the present study shows that from the viewpoint of Imamieh jurisprudence and criminal law, there are numerous reasons and evidence for the condemnation of intentional homicide, Including the study of hadiths and narrations, the clarification of areas, the materiality of the practical principle, the principle of doubtful interpretation of the accusation, and finally the conformity of the criminal policy with the temporal and spatial conditions, that should be addressed by the Iranian legislator, especially in the insurance industry. Conclusion: The acceptance of the theory of concentration of Wergild for deliberate homicide on the one hand is more in line with the present conditions of Iranian society and on the other hand, it would significantly reduce the legal obligations of third-party insurance companies, equivalent to the riyal of a Muslim man's blood money in the prohibited months, because by incorporating the above-mentioned theory into the relevant laws, the concentration of blood money on crimes. The unintentional consequence of car accidents has been a matter of course for many years to come, and as a result, many of the problems associated with claiming surplus diets on the insurers' ceiling will also be resolved.

Objective: The objective of this study is analyzing the risks of non-life swaps market and the different types of risks associated with the two operational models of the non-life insurance exchange market. Risk assessment and management are among the most important challenges for managers in different companies and industries. The insurance industry is no exception, and there are numerous problems in distributing the risks and demands of large insurance companies that are not repaid for a long time and the number of claims is increasing day by day, necessitating the design and use of new financial tools to solve the problems of the insurance industry. Non-life insurance swaps are one of the new derivative financial instruments that additionally contributes to the hedge and transfer of risk and as an insurance security can also balance the risk as well as free up the risk-holding capacity of insurance and reinsurance companies. In addition, insurers' differing views on risks and their probability of occurrence can lead to the formation of insurance swaps markets, especially catastrophic swaps. Method: This is a descriptive-analytical research conducted using qualitative approach. first, The non-life insurance swaps market and non-life insurance swaps tools were examined using library studies and the focus group discussions with reinsurance experts. Then, different types of methods to cover these risks are expressed. Finding: After analyzing the market risks of non-life insurance swaps, different types of risks are calculated based on the two operational models of the non-life insurance swap market and the methods of covering and covering their risks counts, which are based on the results obtained from the experts of the focus group. Conclusion: One of the dimensions of the implementation of the non-life insurance swap market is the study of its risks. In this research, the risks and various methods of risk coverage of the model are presented.