• Journal of the Korean Operations Research and Management Science Society
• /
• v.28 no.4
• /
• pp.39-60
• /
• 2003

In this study, we evaluate financial performance of 21 domestic life insurers using SAW (simple additive weighting), ELECTREII, cluster analysis respectively, and suggest a hybrid approach of combining cluster analysis and ELECTREII to reclassify the life insurers into more meaningful groups according to their respective financial features. We also perform the sensitivity analysis employing ANOVA and Tukey's test to examine the robustness of ELECTREII, which would be influenced by decision maker's subjective preference parameters. Consequently, it is shown that ELECTREII turns out to be a flexible method providing decision makers with useful ranking Information especially under fuzzy decision making situation with incomparable alternatives, and hence it can serve as a complementary method to overcome the weakness of classical cluster analysis.

• Communications for Statistical Applications and Methods
• /
• v.28 no.6
• /
• pp.655-671
• /
• 2021

This study analyzes the premium risk of insurers in Korea, which is expected to experience the fastest population aging in the world. Based on the Lee-Carter model, we generate 10,000 scenarios for the number of future survivors in the group of the 10,000 policyholders of life annuity. According to the result of simulation study, the probability of insurer's loss for both groups of male and female policyholders is very low. This result indicates that the premium risk of insurers is not as great as the insurer's concern. This study also suggests introduction of the longevity swap as an alternative to manage the premium risk for the insurer which sells life annuity products. The longevity swap allows insurers to hedge premium risk and reduce capital burden due to the premium risk inherent in life annuity. This study also shows through examples that the counterparty of swap deal may have excess profit in exchange for taking premium risk.

• Journal of the Korean Data and Information Science Society
• /
• v.16 no.2
• /
• pp.237-253
• /
• 2005

In Korea, the volume of insurance industry has been increased rapidly with helping the economic growth, the increment of GNP and derive of public welfare policy. But the other side of the volume increment, the life insurers have some problems, such as the high rate of turnover, lapses and surrenders, in processing of acquiring more insurance contracts. The object of this paper is the analysis of the causes and properties of the high rate of turnover, lapses and surrenders using statistical survival model. Also we hope that the insurers will use the results of analysis to reduce the rates.

• Communications for Statistical Applications and Methods
• /
• v.18 no.6
• /
• pp.771-785
• /
• 2011

Most studies on the joint life insurance assume the lifetimes of insurers to be mutually independent; however, there have been various studies that illustrate the dependency of insurers' lifetimes. Subsequently, some approaches to model this type of dependency have been suggested. This paper proposes a joint dependent lifetime distribution for coupled lives under common environmental effect and applies the proposed model to the study of the joint life insurance. In addition, we investigate the effect of the false assumption of independent lifetimes when there exists dependency between the insurers' lifetimes assumed in this paper.

• Fire Science and Engineering
• /
• v.28 no.2
• /
• pp.26-33
• /
• 2014

Recently in Korea, the interest for using window and window-wall in building picks up due to the beauty and utilization of space. But, interior space of the buildings shall be compartmentalized by fire resistance structures in accordance with the Korean building codes to prevent the spread of flame and damage of human life in fire. In case of installing non-insulated glazed window in compartment wall, the flame spread to adjacent space and the damage of human life by radiant heat can occur in fire. On this study, to confirm the risk of radiant heat for non-insulated glazed window in fire, the fire resistance tests were conducted. The temperature rise and heat flux on unexposed space was measured and analyzed.

• The Journal of the Korean life insurance medical association
• /
• v.21
• /
• pp.75-87
• /
• 2002

• Journal of the Korean Society of Safety
• /
• v.28 no.6
• /
• pp.11-16
• /
• 2013

This paper presents a study on the analyzing reliability of smoke fire detector using accelerated life test. In general, the smoke fire detector is broken by dust which flow in smoke detection chamber. In order to conduct accelerated life test of smoke fire detector dust is set accelerated factor in this paper. The dust is fly-ash which is test particle 5th regulated by KS A 0090. The dust accelerated level is 60 g, 180 g and 360 g and failure time is measured by smoke sensitivity testing. It is considered to failure of detector if detector don't operate within 30 secconds when subjected to an air stream having a velocity of 20 cm/s~40 cm/s containing smoke with a concentration of 15% of rate of light-response of 1 m. The goodness of fit test and mean life prediction conduct using the failure time. The result show that life distribution fits the weibull distribution for failure time data and the mean lifes calculate 22.5 year in domestic product and 14.7 years in overseas product applied dust stress only.

• The Journal of the Korean life insurance medical association
• /
• v.28 no.1_2
• /
• pp.19-24
• /
• 2009

This article discusses the use of fasting blood glucose (FBG) and hemoglobin A1c (A1c) to identify insurance applicants who have diabetes or are at high risk for developing diabetes in the future. The conclusion is that the addition of A1c to insurers'underwriting requirements, either as a reflex or a routine (universal) test, may be a cost-effective strategy to manage the risk associated with impaired fasting glucose (IFG) and diabetes.

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2003.11a
• /
• pp.229-232
• /
• 2003

This study discusses the strengths and weaknesses of MAUT, AHP, and PROMETHEE as multicriteria decision making aids with respect to their underlying assumptions and axioms, and suggest the usefulness and limitations of PROMETHEE as a outranking method. For the demonstration purpose, we provide a numerical example to evaluate 3 domestic life insurers using PROMETHEE.

• The Korean Journal of Financial Management
• /
• v.24 no.2
• /
• pp.147-181
• /
• 2007

Our article investigates the risk implication of ownership structure in life insurance companies. We set up a model to identify the priority structure of policyholder's and shareholder's cashflow claims, and to derive its implications. Current literature on this issue has focused on the agency paradigm or the risk-sharing efficiency. Fama and Jensen(1983a, 1983b) and Mayers and Smith(1981, 1986, 1988, 1990, 1994) argue that the survival of both the corporate and the mutual form of organization is due in part to the relative efficiencies in controlling agency problems. With regard to insurance business, agency problems arise because of the three functions inherent in the organizations:manager, risk-bearer(owner), and policyholder. Stock insurers are characterized by the potentially complete separation of all three functions while mutual insurers merger the policyholder with the ownership function. Doherty and Dionne(1993) and Doherty(1991) concentrate their analysis on differences in the efficiency of risk sharing between participating and non-participating policies. They argue that when the undiversifiable risk has higher portion in business risk, combining policy and equity claims into a single package is a more efficient risk-sharing contract than a simple prepaid risk-transfer. Among various methods for assembling the policy/equity package, Doherty and Dionne(1993) and Doherty(1991) suggest that policy/equity package offered by the mutual is the most efficient risk-sharing arrangement. There has been a controversy on the property of participating policies sold by life insurance corporations in Korea. Some scholars argue that participating policyholders of Korean life insurance companies have shared the cashflow risk with shareholders. They emphasize that insurance firms have used dividend reserves to supplement for equity deficits. Thus, they argue that the economic entities of Korean life insurance companies are mutual companies though their legal entities are corporations. Our article explicitly sets up each stakeholder's cashflow claim in stock and mutual insurers, and thus identify risk differences in shareholder and policyholder. Using our model, we could derive direct implications on the controversy. Our model shows that life insurance companies would sell participating policies since policyholders would have the incentive to share the risk inherent in their primary claims with equityholders. And there exists a fundamental difference in shareholder's risk and equityholder's.