Original Research Paper
S. Asadiqaragoz; A. DaghighiAsli; Gh. Mahdavi; M. Damankeshideh
Abstract
Objective: Financial development resulted from the advances in the insurance, banking and capital markets sectors is one of the most important requirements for a country’s sustained economic growth. An efficient system is needed for pooling micro-funds in the banking and insurance sectors and converting ...
Read More
Objective: Financial development resulted from the advances in the insurance, banking and capital markets sectors is one of the most important requirements for a country’s sustained economic growth. An efficient system is needed for pooling micro-funds in the banking and insurance sectors and converting them into financial resources for firms’ financing and investment. In developed countries, life insurance is one of the most important mechanisms for attracting stagnant liquidity in the market and leading them into capital market along with sustaining the benefits for policyholders. However, in developing countries, the role of this financial institution is very limited. The objective of this study is to identify and investigate the macroeconomic factors affecting financial development with an emphasis on life insurance development.Methodology: This study examined the impact of life insurance on financial development in a comparative study between developed countries and Iran during the period of 1985-2016 using the Generalized method of moments approach. Findings: The results show that the development of life insurance in developed countries, unlike Iran, has a significant impact on financial development. This indicates the underdevelopment of the life insurance sector in Iran's insurance industry. Also, the effect of government expenditure on financial development in Iran, in contrast to the developed countries, is positive and significant. On the other hand, the impact of the inflation rate on financial development in Iran has been significant in contrast to the developed countries. Among the variables studied for developed countries, trade volume, government spending, GDP per capita and life insurance development had the greatest impact on financial development. In Iran, government spending, inflation, and life insurance have had the greatest impact on financial development.Conclusions: The impact of life insurance on financial development is more than non-life insurance. Besides, unlike the developed countries, life insurance in Iran due to its low share in the insurance companies’ portfolio, has a significant negative effect on financial development in the banking sector. The first hypothesis of the research "life insurance development has a significant impact on the financial development in the developed countries" is confirmed. Nevertheless, the second hypothesis of the research, "life insurance Development has a significant impact on Iran’s financial development", is partially supported.
Original Research Paper
N. Mahmoudpour; A. Neisy; M. Peymany; M. Amiri
Abstract
Objective: Presenting a model for catastrophe swap pricing based on stochastic models and numerical solution of the model.Methodology: Descriptive, its design is retrospective, the direction of applied research and the method of collecting information is library. In this research, the "use of available ...
Read More
Objective: Presenting a model for catastrophe swap pricing based on stochastic models and numerical solution of the model.Methodology: Descriptive, its design is retrospective, the direction of applied research and the method of collecting information is library. In this research, the "use of available information and documents" tool was used and Varans and Pilke (2009) database was used. In determining the changes in the swap price, Ito's order was followed, and Black and Schulz's generalization of the modeling method was used to reach the catastrophe swap model. A partial integral differential equation was extracted and converted to ordinary differential equations using semi-discretization and finite difference method and Euler method were used to solve the catastrophe swap pricing model. The parameters were estimated and implemented numerically based on Björk's (2009) statistical inference method, and finally, the model was implemented using MATLAB software.Findings: A new two-factor model for damage has been presented. In other words, instead of C in Anger's model, 〖"Ce"〗^"λ" is used and Landa is considered to change randomly every moment. Therefore, from the point of view of the mathematics of probability, the intensity does not have a fixed value and follows a random geometric Brownian process, which is correlated with the damage. Also, a new model for catastrophe swap pricing has been presented, which has two integral and differential parts.Conclusion: The catastrophe swap price has an inverse relationship with the growth of damage and the growth of damage severity. Also, the trend of the price for damage less than the threshold has a regular trend, and these changes are proportional to the changes in damage and severity.
Original Research Paper
H. Rajabi Farjad; S. Tootian Isfahani; M. Sabet
Abstract
Objective: The blue ocean strategy, as a competitive source, can identify the potential of the companies and win them in the competition. Therefore, this study evaluates the relationship between using the blue ocean strategy and gaining competitive advantage.Methodology: The research is a descriptive ...
Read More
Objective: The blue ocean strategy, as a competitive source, can identify the potential of the companies and win them in the competition. Therefore, this study evaluates the relationship between using the blue ocean strategy and gaining competitive advantage.Methodology: The research is a descriptive study using a questionnaire survey. About 157 of managers, consultants and employees of an insurance company were selected using simple random sampling method and participated in this study. Data was analyzed using structure equation modeling and the path analysis to examine the research hypotheses using SPSS and PLS softwares.Findings: The results indicate that all research hypotheses were confirmed and the removal strategy of the blue ocean has first rank and the greatest impact on the competitive advantage of an insurance company, and the reducing strategy for the ocean blue has Fourth rank and the lowest impact on the competitive advantage of the an insurance company.Conclusions: Insurance Companies can Achieve Competitive Advantage using the blue ocean strategy.
Original Research Paper
M. Seyedzadeh; M. Behname; M. H. Mahdavi Adeli; T. Ebrabimi Salari
Abstract
< p >Objective: Natural disasters have destructive effects on the countries’ physical and human capitals. Hence, it is necessary to use risk management techniques. The purpose of this study is to analysis the impact of earthquake insurance on reducing the earthquake destructive effects on ...
Read More
< p >Objective: Natural disasters have destructive effects on the countries’ physical and human capitals. Hence, it is necessary to use risk management techniques. The purpose of this study is to analysis the impact of earthquake insurance on reducing the earthquake destructive effects on economic growth through financing the destruction and forcing the insureds to reduce risk. Therefore, the effects of possible earthquakes in the Ray fault or Tehran north fault on Iran economic growth for 40 years is simulated. The year 2012 was assumed as the beginning and the possible earthquake occurrence was predicted in the eighth year (2020). Then, the effects of using insurance techniques for risk management on reducing the damaging effects of earthquakes on economic growth have been analyzed. Method: The effects of probable earthquake in Tehran on Iran economic growth is simulated by system dynamics method. This method provides the possibility of comprehensive analysis of the insurance earthquake effect on the reduction of the destructive earthquake impacts on national capital, and identifies the earthquake impact channels on economic growth by dynamically examining causal relationships, and Iran economic growth changes by earthquake predicts in the long run. Finding: The findings show that in the event of an earthquake in the Rey fault, the physical capitals of 2400100 billion rails, 647800 humans and 203480 billion gross domestic product will decrease by 2051. Therefore, earthquake risk management is necessary to reduce these effects. If there is no earthquake insurance, only part of the damages will be compensated by the government and international organizations. Thus, the government''s development budget will be spent on post-earthquake reconstruction and it will hit the country''s economy. However, if there is earthquake insurance fund, most of the losses will offset by the funds received from the insureds and foreign reinsurers will required to pay damages. Another advantage of using earthquake insurance is to create conditions to reduce the damages scope by the insureds. Results suggest that insurer required to comply with the insured with the country''s seismic regulations by applying incentive and risk-based pricing policies. Therefore, buildings collapse risk and amount of earthquake damage will be reduced. Conclusion: The speed of reconstruction and compensation will increase in case of application of insurance technique in earthquake risk management. Therefore, a general earthquake insurance fund should be created. Observing the risk dispersion principle is important for the insurers. The fund covers part of its funds with foreign reinsurance. Part of potential losses incurred in Iran will be compensated through foreign insurers, capital will be rebuilt and the country''s economic growth will be improved. The results recommend that the fund considers buildings collapse risk and the country''s seismic regulations compliance to determine the amount of premium. Thus, the devastating effects of the earthquake on physical assets will be decreased by 525,600 billion Rials and economic growth will be improved by 62100 billion Rials by creating a public earthquake insurance fund and obliging the insured to observe the Iran seismic regulations. ClassificationJEL: Q54, G22, C630, O400
Original Research Paper
M. Moshiri; V. Mirabi; H. Vazifehdust
Abstract
Aim: To present a developed model of effective factors in customers' switching intentions and their behavioral intentions in the insurance industry using the method of structural equations and fuzzy inference system.Methodology: In terms of research method, this study is in the category of descriptive-analytical ...
Read More
Aim: To present a developed model of effective factors in customers' switching intentions and their behavioral intentions in the insurance industry using the method of structural equations and fuzzy inference system.Methodology: In terms of research method, this study is in the category of descriptive-analytical studies, and its statistical population consists of customers of insurance companies in Alborz province. For the purpose of sampling, Cochran's formula was used and based on this, 386 customers participated in the present study (by stratified random sampling method). The data were collected with standard questionnaires and the data were analyzed with two approaches of structural equation modeling and fuzzy inference system.Findings: The findings in the structural equation modeling section showed that the set of background factors in the theoretical model of this research can explain 91.8 and 77.2 percent of the changes in customers' behavioral intentions and customers' intention to turn (R-Square=0.918 0.772). Also, the results obtained from the fuzzy inference system showed that the effects of customer satisfaction and perceived risks are opposite to each other.Conclusion: In medium to high perceived risks, changes in customer satisfaction scores from a numerical value of 0.1 to 1 have a decreasing effect on the intention of customers to turn away. Also, the switching cost, compared to the brand image, has a lower effect in achieving positive behavioral intentions in customers; To the extent that with the realization of high switching cost, that is, scores higher than 0.8, it is only enough that the image of the brand is greater than the value of 0.2 to expect that positive behavioral intentions in customers will be realized at a very favorable level
Original Research Paper
M. Aidi; M. Alizadeh
Abstract
Objective: To investigate the role of practical and symbolic brand on the brand citizenship behavior of employees of an insurance company in Ilam city, considering the mediating role of trust in the brand.Methodology: It is a descriptive and survey type, and considering the measurement of relationships ...
Read More
Objective: To investigate the role of practical and symbolic brand on the brand citizenship behavior of employees of an insurance company in Ilam city, considering the mediating role of trust in the brand.Methodology: It is a descriptive and survey type, and considering the measurement of relationships between variables, it is considered to be a type of correlational and causal research, and it is practical in terms of purpose. The statistical population of this research includes the employees of an insurance company in the city of Ilam and their agents and employees. Census method has been used to determine the sample size due to its limited size. The data collection tool was a questionnaire and 219 numbers were distributed and analyzed, and structural equation modeling method was used to analyze the data with the help of SPSS and Amos software, in order to test the assumptions and accuracy of the model.Findings: The functional and symbolic brand has a significant effect on the brand citizenship behavior of Ilam city insurance employees, considering the role of trust in the brand. Also, in this research, the effect of functional brand and symbolic brand on the variable of trust in the brand and also the effect of the variable of brand trust on the variable of brand citizenship behavior were investigated according to the following hypotheses, and the results showed the effect of the variables of functional and symbolic brand on the variable of trust in the brand and also the variable of trust. It is also meaningful in brand citizenship behavior.Conclusion: According to the findings of the statistical data of the research and the test of these data, the results show the confirmation of the hypotheses and goals designed in the research. Also, taking into account the intense competitive environment in the market of service organizations, it can be concluded that the positive and meaningful effects of functional brand and symbolic brand, as well as their dimensions on the brand citizenship behavior of insurance employees, lead to the important point that organizations, especially service organizations , they should pay more attention to the category of brand and service brand design, and also give more importance to practicality and the emotional and motivating features desired by the customer.
Promotional-Science Article
F. Atatalab; L. Niakan
Abstract
Purpose: This article introduces the risk assessment process of insurance companies in the risk-based monitoring system and how to monitor them.Methodology: The risk assessment framework for insurance and reinsurance companies introduced by (KNF, 2018) was used. This framework is a comprehensive process ...
Read More
Purpose: This article introduces the risk assessment process of insurance companies in the risk-based monitoring system and how to monitor them.Methodology: The risk assessment framework for insurance and reinsurance companies introduced by (KNF, 2018) was used. This framework is a comprehensive process that uses all available information of the supervisory body about the insurance company (reinsurance) and the information obtained as a result of activity licensing measures and off-site inspection and control measures during on-site inspection about the insurance company (reinsurance). And it is done through the questions of the questionnaires sent to the insurance company.Findings: The risk-oriented supervisory approach is based on the focus of the supervisory body on serious risk areas and on companies that need more attention. One of the requirements for the implementation of the new approach is to approach the basic principles of the International Association of Insurance Supervisors, preparing risk management reports, actuarial reports, rating insurance companies, analyzing complaint data and separating life and non-life insurance accounts.Conclusion: In order to achieve the goal of effective supervision in the country's insurance industry and to achieve risk-based supervision, it is necessary to draw a road map, which is actually the same measures necessary to achieve the desired situation:• Adaptation of the insurance regulations of the country with the basic principles of insurance presented by the International Association of Insurance Supervisors;• Separation of life and non-life insurance accounts;• Development of actuarial performance standards;• Requiring insurance companies to prepare financial and risk self-assessment reports to implement the requirements of the corporate governance regulations (risk management) and also according to the principles of IAIS;• Use of international and general standards and regulatory and regulatory standards of company risk management;• Preparation of internal control reports by insurance companies.
