• Title/Summary/Keyword: 손해보험산업

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An Empirical Study on the Profit Margin Adequacy of Korean General Insurance (국내 일반보험 예정이익률 적정성에 관한 실증연구)

  • Park, Geunyong;Kim, So-Yeun
    • The Journal of the Korea Contents Association
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    • v.21 no.6
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    • pp.588-597
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    • 2021
  • In Korea, the standard for calculating the profit of a general insurance, which constitutes the loading in the premium, is not specified, and most of the non-life insurance companies reflect 2~5% of the premium as profit margin. Although the transparency of pricing is required due to the nature of insurance products, there are insufficient standards and empirical studies on the determination of insurance price factors in the domestic insurance industry. In this study, we propose a method of calculating the expected profit margin of general insurance. A way for calculating the expected profit margin of the general insurance is to reflect the shareholder demand on the capital that the insurance company should secure against the risk of loss due to the profit/loss volatility, as a ratio to the insurance premium. Shareholders should be compensated for the risks associated with their insurance operations, and the opportunity cost of these shareholders is to be reflected in premiums. In this study, we calculate the amount of capital that the company should accumulate to prepare insurance risk for each product, and insurance risk is defined as the volatility of insurance operating profit/loss. And insurance risk is calculated using stochastic simulation based on Dynamic Financial Analysis (DFA) methodology. Finally, we calculate the expected profit margins for 25 products and analyzed the difference between those and the profit ratio of domestic general insurance.

The Strategies for the Sustainable Management of Insurance Companies (보험회사의 지속가능경영 전략에 관한 연구)

  • Jung, Se-Chang;Seon, Hwan-Kyu
    • Communications for Statistical Applications and Methods
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    • v.18 no.1
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    • pp.119-130
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    • 2011
  • This paper measures and analyzes the performance of insurance companies in Korea in respect to sustainable development and suggest strategic implications based on the analysis. The correlation, regression, ANOVA, and t-test are employed. The results of this study are summarized as follows. First, it shows tat social index is important in the life insurance industry; however, the environmental index, is important in the non-life insurance industry. Second, the result gained by regressing the size and financial soundness on the performance of sustainable development demonstrates that the size variable is statistically significant. It suggests that size is a necessary condition for sustainable development. Finally, ANOVA shows that the small and medium sized companies have a significantly poor performance compared to the large companies concerning the social index and reputation index in the life insurance industry. The small and medium sized companies in the non-life insurance industry exhibit a significantly poor performance compared to the large companies in respect to all the indexes, except for the social index. Therefore, the small and medium sized companies make every endeavor in the poor indexes to improve performance.

A Study on the Prospects of the Financial IT Services Industry using the Correlation Analysis of the IT Budget in the Financial Industry (금융산업의 IT예산 상관관계 분석을 통한 금융IT서비스산업의 발전전망에 관한 연구)

  • Park, Sang-Kook;Han, Kyeong-Seok
    • Journal of Digital Convergence
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    • v.12 no.3
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    • pp.55-62
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    • 2014
  • According to the existing studies, the yearly IT budget on Korean financial industry has the same pattern with the GDP Change trend. We analyzed the correlation between GDP and the IT budget of financial industry for the 20 years since 1993. According to the results, as time went by the IT budget of bank, life insurance and securities has been consistently maintained a downward trend. On the other hand, it was confirmed to be maintained a upward trend of the non-life insurance's IT budget. As a result, we analyzed the impacts of IT regurations in the financial industry, then proposed the policy directions of the financial IT services industry.

Bayes Risk Comparison for Non-Life Insurance Risk Estimation (손해보험 위험도 추정에 대한 베이즈 위험 비교 연구)

  • Kim, Myung Joon;Woo, Ho Young;Kim, Yeong-Hwa
    • The Korean Journal of Applied Statistics
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    • v.27 no.6
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    • pp.1017-1028
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    • 2014
  • Well-known Bayes and empirical Bayes estimators have a disadvantage in respecting to overshink the parameter estimator error; therefore, a constrained Bayes estimator is suggested by matching the first two moments. Also traditional loss function such as mean square error loss function only considers the precision of estimation and to consider both precision and goodness of fit, balanced loss function is suggested. With these reasons, constrained Bayes estimators under balanced loss function is recommended for non-life insurance pricing.; however, most studies focus on the performance of estimation since Bayes risk of newly suggested estimators such as constrained Bayes and constrained empirical Bayes estimators under specific loss function is difficult to derive. This study compares the Bayes risk of several Bayes estimators under two different loss functions for estimating the risk in the auto insurance business and indicates the effectiveness of the newly suggested Bayes estimators with regards to Bayes risk perspective through auto insurance real data analysis.

Development of a Business Model for Korean Insurance Companies with the Analysis of Fiduciary Relationship Persistency Rate (신뢰관계 유지율 분석을 통한 보험회사의 비즈니스 모델 개발)

  • 최인수;홍복안
    • Journal of the Korea Society of Computer and Information
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    • v.6 no.4
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    • pp.188-205
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    • 2001
  • Insurer's duty of declaration is based on reciprocity of principle of the highest good, and recently it is widely recognized in the British and American insurance circles. The conception of fiduciary relationship is no longer equity or the legal theory which is only confined to the nations with Anglo-American laws. Therefore, recognizing the fiduciary relationship as the essence of insurance contract, which is more closely related to public interest than any other fields. will serve an efficient measure to seek fair and reasonable relationship with contractor, and provide legal foundation which permits contractor to bring an action for damage against violation of insurer's duty of declaration. In the future, only when the fiduciary relationship is approved as the essence of insurance contract, the business performance and quality of insurance industry is expected to increase. Therefore, to keep well this fiduciary relationship, or increase the fiduciary relationship persistency rates seems to be the bottom line in the insurance industry. In this paper, we developed a fiduciary relationship maintenance ratio based on comparison by case, which is represented with usually maintained contract months to paid months, based on each contract of the basis point. In this paper we have developed a new business model seeking the maximum profit with low cost and high efficiency, management policy of putting its priority on its substantiality, as an improvement measure to break away from the vicious circle of high cost and low efficiency, and management policy of putting its priority on its external growth(expansion of market share).

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A study on mandatory insurance for aircraft operators (항공보험 가입의무에 관한 연구)

  • Lee, Chang-Jae
    • The Korean Journal of Air & Space Law and Policy
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    • v.33 no.2
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    • pp.169-197
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    • 2018
  • The purpose of this study is to present a reasonable and concrete standard for the Korean aviation insurance compulsory subscription system. Through this, we aim to improve the current revision of laws and regulations, and ultimately create an environment in which the safety and property of the Korean people who use aircraft with appropriate aviation insurance can be secured. In particular, by reviewing the aviation business law and its new laws and regulations enacted in 2017, the legislative improvement direction of aviation insurance will be proposed. In order to maintain the continuous growth of the air transportation industry and to make amicable compensation for the victims, considering the characteristics of the total accident, instantness, and giganticness of air accidents in which a lot of people and property are lost in the event of an accident, adequate insurance coverage is essential. In this respect, the compulsory insurance to amend the principle of freedom of contract, which is the great principle of the modern judicial system, will be persuasive. However, in comparison with foreign legislation, the legal provisions on Korea's obligation to comply with aviation insurance need to be revised around the following issues: First, it is reasonable to enforce the regulation of the mandatory aviation insurance by legislation from the Congress not by administrative regulations. Because it will force the monetary obligations of the individual such as common air carriers. Second, our law regulations respond to various kinds of air damages by using the phrase "limit of liability stipulated in international conventions". However, as we have seen in the text, the range of compensation are various according to the use of legal instruments in international conventions such as the Montreal Convention, which governs the compensation of passengers for damages to passengers today. Third, in countries with narrow territories, such as Korea, there are big differences in flying time and insurable risk between domestic and international transportation. Therefore, it is necessary to divide domestic transportation and international transportation even in the obligation to join the insurance. This dual discipline has the advantage for rookies in air carrier market who mainly start their business from domestic service. Fourth, according to Korean law, the regulations of automobile loss insurance is applicable to the aviation mandatory insurance of unmanned aerial vehicle accident which is lack of persuasion. In the future, it will be appropriate to discipline insurance for unmanned aerial vehicles with unlimited potential for development from a long-term perspective.

A Study on the Improvement of Engineering and Construction Supervision Guarantee System in Korea (국내 설계.감리 등 용역보증제도 현황 및 개선방안 연구)

  • Lee, Yong-Hee;Choi, Jae-Ho
    • Korean Journal of Construction Engineering and Management
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    • v.12 no.3
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    • pp.53-61
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    • 2011
  • After several collapse accidents of large structures in the early 1990s in Korea, the government enacted a law that architectural, engineering and construction firms are obliged to have insurance for projects over a certain size. Particularly, with regard to insurance in design and construction supervision works (i.e. engineering insurance), although several operation-based problems were pointed out from practitioners, still little research has been done on analyzing current regnlartory and operational state and suggesting policy alternatives. Hence, this study applies Delphi technique to solicit current operational problems and propose a series of improvements on engineering insurance based on interview surveys targeting major market participants: municipalities, engineering firms, and insurance companies. Key findings culminate in adopting guarantee limits based on credit evaluation, abrogating joint surety, covering a loss of life, increasing insurance entrance fee, extending time covered, and etc. Reaching a consensus on the proposed alternatives between the market participants will form the foundation for sound developments of construction design and engineering industry.

A Study on Space Insurance of Foreign nation's Law (외국의 우주보험 관련법 연구)

  • Cho, Hong-Je
    • The Korean Journal of Air & Space Law and Policy
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    • v.26 no.1
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    • pp.271-297
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    • 2011
  • Recently, risk of space accident possibility increased in according to commercial space activity and space debris. It failed launch satellite second times in South Korea. Therefore was discussed on liability and insurance issue. Generally, discuss of space insurance be divided two type. Firstly, space insurance relevant to launching satellite and in-orbit. Satellite Launch Insurance and In-Orbit Insurance by the Satellite Operator Secondly, space insurance relevant to Third Party Liability. The former is to protect owner of satellite and operator. The latter is to liable and indemnify owner of satellite and operator's liability. US, UK, France, Russia, South Korea forced to buy space insurance following to domestic law. This is a brief overview of risk allocation and insurance practices in the commercial space transportation industry today. We begin with traditional space transportation, i.e., commercial satellite launches. This is a mature industry with known players. Industry practices have developed and legislation has been adopted in the U.S. and other countries over the past decades to address liability and insurance issues. The primary focus here is on U.S. law, but the discussion of industry practice applies more generally. We then move on to a more exotic form of space transportation: Commercial human space flight. Several private companies are now signing up space tourists for commercial suborbital human space flight, advertised to become available in the near future. The United States amended its launch legislation in 2004 to promote commercial human space flight. But questions remain as to how this new industry will respond to the risk allocation regime established by the U.S. legislation, which leaves both the space flight operator and space tourist exposed to risk and potential liability. As a general proposition, state statutes and contractual waivers alone cannot be relied upon to provide adequate liability protection, and insurance will be required. Federally mandated contractual waivers by space flight participants or liability caps would be helpful to complement insurance solutions. Eventually, as the industry matures, such practices could be extended to an international legal regime. For all the issues mentioned above, I have studied the existing international treaties and several country's domestic law to the space by referring U.S's Commercial Space Launch Amendment Act of 2004 and concluded that uniform legal regime to govern these insurance issues should be established domestically and internationally in the future.

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Various modeling approaches in auto insurance pricing (다양한 모형화를 통한 자동차 보험가격 산출)

  • Kim, Myung-Joon;Kim, Yeong-Hwa
    • Journal of the Korean Data and Information Science Society
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    • v.20 no.3
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    • pp.515-526
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    • 2009
  • Pricing based on proper risk has been one of main issues in auto insurance. In this paper, we review how the techniques of pricing in auto insurance have been developed and suggest a better approach which meets the existing risk statistically by comparison. The generalized linear model (GLM) method is discussed for pricing with different distributions. With GLM approach, the distribution of error assumed plays an main role for the best fit corresponding to the characteristics of dependent variables. Tweedie distribution is considered as one of error distributions in addition to widely used Gamma and Poisson distribution. With these different types of error assumption for estimating the proper premium in auto insurance, various modeling approaches are possible. In this paper, various modeling approaches with different assumptions for estimating proper risk is discussed and also real example is given by assuming different.

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