Original Research Paper
Financial / Applied Mathematics
Navideh Modarresi; Parsa Yahyavi
Volume 14, Issue 2 , March 2025, Pages 95-108
Abstract
BACKGROUND AND OBJECTIVES: Companies and institutes in industrial and developed countries have changed their pension plans from defined benefit (DB) plans to defined contribution (DC) ones. By this approach, they have transferred the risk of forming and managing a portfolio to buy suitable life insurance ...
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BACKGROUND AND OBJECTIVES: Companies and institutes in industrial and developed countries have changed their pension plans from defined benefit (DB) plans to defined contribution (DC) ones. By this approach, they have transferred the risk of forming and managing a portfolio to buy suitable life insurance at the time of retirement to the employees of these centers. In line with these changes, the aim of this paper is to present an optimal investment portfolio to buy a favorable life insurance at the time of retirement.METHODS: In this paper, with the aim of determining an optimal investment portfolio during the accumulation phase in an efficient market, the Martingale method and a target-based mean-variance approach are applied to solve the stochastic optimal control problem.FINDINGS: By the presented method, we explicitly acquire optimal investment strategy during the accumulation phase by the time of retirement. An optimal investment strategy is an optimal investment portfolio where available assets in financial markets are included. Financial markets consist of risky assets, riskless assets and cash where the price of risky assets follows the geometric Brownian motion model. The investor’s contributions to the pension plan also follow geometric Brownian motion with two factors and the interest rate has Vasicek model. Finally, using the historical data of the financial market of Iran, we calibrate the parameters of the introduced models and construct the corresponding optimal portfolio. For investment strategies with low, mild, and high risk tendencies, we simulate the construction and change in the value of the optimal investment portfolio for each year of the accumulation phase.CONCLUSION: Based on the simulations conducted, the high risk strategy, with a small percentage of assets allocated to investment in risky assets, eliminates opportunities for profit through risk-taking, which may result in an undesirable accumulated fund. On the other hand, low risk startegies, with a high percentage of assets allocated to investment in risky assets, increases bankruptcy and failing probability to reach a minimum level of accumulated capital. Therefore, according to these results, a mild risk- strategy, which simultaneously emphasizes opportunities for risk-taking and greater guarantee about the minimum accumulated capital, can meet the needs of a wide range of investors.
Original Research Paper
New Insurance Technologies
Behnam Yousefimehr; Mehdi Ghatee; Sina Moradi; Yasamin Tafakor; Sajed Tavakoli
Volume 14, Issue 2 , March 2025, Pages 109-118
Abstract
BACKGROUND AND OBJECTIVES: Clustering is one of the basic techniques in data mining and machine learning, which is used to divide a set of data into homogeneous subsets. There are different methods for clustering, each of which has its own strengths and weaknesses. One of the main challenges in clustering ...
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BACKGROUND AND OBJECTIVES: Clustering is one of the basic techniques in data mining and machine learning, which is used to divide a set of data into homogeneous subsets. There are different methods for clustering, each of which has its own strengths and weaknesses. One of the main challenges in clustering is finding the optimal number of clusters and optimal allocation of data to these clusters. Genetic algorithm, as an optimization method based on natural evolution, has a high ability to solve complex problems and search for large solution spaces and can be used as an effective tool in clustering. The purpose of this article is to investigate the efficiency and accuracy of genetic algorithm in data classification and compare it with traditional clustering methods for classification. In order to evaluate the performance of this algorithm, several insurance data sets are used and the obtained results are analyzed with different criteria such as accuracy. Also, different parameters of the genetic algorithm are examined and their effects on the final performance of the algorithm are studied in order to determine the most optimal settings for data classification.METHODS: In this research, to form chromosomes, at first, the number of clusters was determined. Considering that each cluster center had as many features as the number of features in the data set, the length of each chromosome was determined by multiplying the number of clusters by the number of features. New and diverse methods were used for Crossover, Mutation and Survival processes. Also, the evaluation criterion similar to the K-means algorithm was chosen to optimize the clustering performance. This innovative approach led to improving the accuracy and efficiency of the classification process.FINDINGS: By applying the method described in this article to three insurance data sets for fraud detection, we have interesting results with 12% improvement in F1 and 10% increase in accuracy in the first data set, 1% improvement in F1 and 1% improvement in accuracy in the first data set. Second and finally, 1% improvement in F1 and 2% improvement in the accuracy of the third data set compared to the K-means method and other methods have been achieved. Due to the 2-mode data in this data set, the problem is solved for two clusters using the algorithm and the best label for each cluster is selected according to the real labels of the data and the result is presented as the results of classification problems. Additionally, significant improvements in metrics such as ARI and other clustering evaluation criteria have been achieved, and remarkable progress has been made compared to the standard genetic algorithm.CONCLUSION: Genetic Algorithm is able to solve complex problems without definite solution and can perform better in data clustering than traditional methods such as K-means. By combining probabilities and randomness, this approach provides the possibility to examine more points as cluster centers and improve clustering performance. The results show that this method works better than the famous methods in some cases and provides a suitable structure for data clustering.
Original Research Paper
Insurance Companies Accounting and International Financial Reporting Standards
mehdi samadi; mohammad solgi; Ayatollah Ebrahimi
Volume 14, Issue 2 , March 2025, Pages 119-130
Abstract
BACKGROUND AND OBJECTIVES: In today's world, insurance is one of the most important economic sectors in society, which, in addition to facilitating international relations, plays a tremendous role in preventing the realization of risk and providing peace of mind for various activities. All companies ...
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BACKGROUND AND OBJECTIVES: In today's world, insurance is one of the most important economic sectors in society, which, in addition to facilitating international relations, plays a tremendous role in preventing the realization of risk and providing peace of mind for various activities. All companies tend to focus on increasing their operational efficiency and effectiveness and implement various information devices to maximize their performance and goals. Operational audit is also a regular and methodical process of evaluating the economic effectiveness and efficiency of the organization's operations and reporting the evaluation results along with practical suggestions to competent persons to improve operations, but despite the legal requirement to implement operational audit according to Article 218 of the 5th National Development Program Law, operational audit is carried out. In practice, it has faced problems in institutions and companies.METHODS: The current research is applied in terms of its purpose and in terms of a mixed (qualitative-quantitative) approach, which was first collected by reviewing the literature and then distributed among forty experts in the field of insurance and auditing through a questionnaire. Ranking was done by TOPSIS Fuzzy.FINDINGS: The results show the approval of all dimensions, components and indicators identified with a threshold limit of 0.5.CONCLUSION: It was proved that in the efficiency component, the net indices of issued premiums, the claim collection period and the loss ratio have taken the first to third rankings. Also, in the effectiveness component, the indicators of customers’ satisfaction, the investment profit of the company's portfolio share from the total market portfolio have the first to third rankings, in the economic efficiency component, the indicators of the ratio of operational, administrative and general expenses to operating income, the total price (the total price of the insurance policy) to sales and the loss ratio (the ratio of the damage paid to the insurance premium received during the same period) have occupied the first to third rankings and finally, in the environmental component, the use of electronic technology in the services of the insurance industry is the only identified indicator. Finally, it was determined that in the field of insurance, operational audit indicators at the general level (4 components: efficiency, effectiveness, economic and environmental efficiency), respectively, the indicators of the ratio of operational, administrative and general expenses to operating income, net premiums issued, the use of electronic technology in the services of the insurance industry, and the collection period of claims are ranked first to fourth, respectively.
Original Research Paper
Risk assessment in insurance
Mohsen gharahkhani; marjan gharahkhani; Feryal Farakesh; somayeh sadeghi; fatemeh Atatalab
Volume 14, Issue 2 , March 2025, Pages 131-146
Abstract
Background and Objectives: Marine insurance is one of the most important branches of insurance playing a crucial role in managing the risks associated with maritime operations. This type of insurance includes hull insurance, liability insurance, marine cargo insurance, and offshore energy insurance, ...
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Background and Objectives: Marine insurance is one of the most important branches of insurance playing a crucial role in managing the risks associated with maritime operations. This type of insurance includes hull insurance, liability insurance, marine cargo insurance, and offshore energy insurance, each covering different aspects of maritime risks. Since maritime activities are constantly exposed to hazards such as adverse weather conditions, marine accidents, cargo damage, and other factors, the precise evaluation of risk profiles related to these types of insurance becomes highly significant. Such assessments not only improve safety and reduce potential losses but also enable insurance companies to make more accurate and informed decisions in risk management, thereby designing more effective strategies to address these risks. In response to this need, the present study aims to identify, analyze, and prioritize risk indicators in marine insurance and provide a systematic and scientific framework for better risk management.Method: In the first stage, key risk indicators were identified through a systematic review of the literature. This stage involved examining scientific articles, industry reports, and credible sources to extract indicators that directly or indirectly affect the risk profile. In the next step, the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method was employed to analyze the relationships among the indicators. This method is one of the advanced techniques for analyzing causal relationships among factors, enabling the identification of influencing and influenced indicators. Following this, the Analytic Network Process (ANP) was used to determine the weight and importance of each indicator. This method, utilizing the insights of experts and specialists in the insurance and maritime industries, provided an accurate prioritization of the indicators and determined their impact on the risk profile.Findings: The results of this study revealed that indicators such as vessel technical specifications, cargo type and packaging, weather conditions, and human resource management are among the key factors influencing the risk profile of marine insurance. Analyses using the DEMATEL method showed that factors related to operational management and human resources have the greatest causal impact on other indicators. These factors were identified as key indicators within the risk structure, emphasizing the importance of focusing on them when developing management strategies. Moreover, the analyses indicated that indicators related to the technical features of the vessel and cargo, such as the vessel's age, cargo type, and packaging methods, play a significant role in increasing or decreasing risks.Conclusion: The hybrid ANP-DEMATEL approach utilized in this study provides a comprehensive and practical framework for evaluating and managing the risk profiles of marine insurance. This framework not only offers an appropriate tool for risk analysis but also helps insurance companies design more effective risk management strategies. Applying this approach can lead to reduced potential losses and optimized risk management processes in the insurance industry. Furthermore, the results of this study can serve as a foundation for future research on developing innovative risk management tools and enhancing the capabilities of marine insurance. The study also demonstrates that adopting a systematic and scientific approach to risk management can improve decision-making and enhance the reliability of insurance processes.
Original Research Paper
Future research in the insurance industry
zaniyar ghorbani; Tohfeh Ghobadi Lmuki; Alireza pirhayati; Behrooz bayat
Volume 14, Issue 2 , March 2025, Pages 147-164
Abstract
Background and Objectives:User-generated content in marketing refers to brand-related content that is published by anyone who is not an official member of that business.Content generated by users can be in various forms including podcasts, videos, comments, images and photos.This study was conducted ...
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Background and Objectives:User-generated content in marketing refers to brand-related content that is published by anyone who is not an official member of that business.Content generated by users can be in various forms including podcasts, videos, comments, images and photos.This study was conducted with the aim of designing a brand social engagement model based on the content generated by users (UGC).Methods: This research tried to achieve its goals by using the paradigm of pragmatism, with the approach of social constructionism with qualitative research design. There are two categories of participants in the research. The first category is experts in the field of marketing and insurance, and the second category is ordinary users, and the samples were selected among them based on the purposeful sampling method. (15 experts, 15 users). The data were analyzed using Strauss and Corbin (1990) coding method. The selected companies to conduct the research include Iran, Asia, Novin, Alborz, Pasargad and Parsian insurance companies and three third party insurances, medical insurance and life insurance have been selected as samples.Results: The findings of the research showed that the brand social engagement model based on the content produced by users in the insurance industry had four components, eleven categories and fifty-eight themes. Social influence and using the potential of content produced by users as final components and two components of trust building and increasing interaction with users are effective in the formation of brand social engagement. Model fitting in three parts includes measurement model fitting, structural model fitting and general model fitting. To check the fit of the measurement model, index reliability, convergent validity and divergent validity were used. The reliability results of the index showed that the designed model has a good fit. The results of the convergent validity test showed that the structures of this research have sufficient validity in terms of convergence and correlation. The results of the divergent validity test showed that the structures have good validity. The results of fitting the structural model showed that you can trust the fitting of the model from the structural dimension and finally the overall fit of the designed model is strong and favorable.Conclusion: According to the obtained results, it can be said that the firms that are active in the insurance industry can create a link and connect the brand story between the insurance company and the users by using the content produced by the insurance users and with interest. Taking the four components of users' social influence in the contents produced by insurance users, the personality type of insurance users in the contents produced by users, the management of the contents produced by insurance users and the potential of the contents produced by users have increased the motivations of users, interactions manage and optimize social and activate social actors and achieve its ultimate goal, which is the formation of social engagement of its respective brand.
Original Research Paper
Insurance rights
Maziyar rastbod; Hamid Abhary; mohammad farzanegan
Volume 14, Issue 2 , March 2025, Pages 165-174
Abstract
BACKGROUND AND OBJECTIVES: According to prevailing opinion, compensation possesses a dual nature. Beyond its punitive aspect, it also has a legal characteristic, serving to compensate for the damage inflicted on the victim. However, the necessity of compensating for inflicted damage dictates that the ...
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BACKGROUND AND OBJECTIVES: According to prevailing opinion, compensation possesses a dual nature. Beyond its punitive aspect, it also has a legal characteristic, serving to compensate for the damage inflicted on the victim. However, the necessity of compensating for inflicted damage dictates that the fixed amount of compensation should be considered only as a minimum for material damages. If additional damage beyond this compensation is caused by the harmful act, the perpetrator is obliged to pay compensation exceeding the initial amount. Nevertheless, in examining the necessity of compensating for damages beyond the initial compensation, the Compulsory Insurance Law for Damages to Third Parties Resulting from Vehicle Accidents, enacted in 2016 (1395), has established a specific rule regarding the compensation of medical expenses in addition to the initial compensation. This specific legal provision has been overlooked in most research conducted in this field. This study aims to specifically examine the special legal ruling on compensating for damages exceeding the initial compensation in traffic accidents covered by the aforementioned law.METHODS: The employed method is analytical-descriptive, utilizing library resources. FINDINGS: In addressing the compensation for medical expenses related to damages caused by traffic accidents, the legislator has deviated from the theory of compensation as reparation. Instead, a ruling has been established that aligns the nature of compensation more closely with the theory of punishment. To examine the legislator’s stance and the correct interpretation of Article 35 of the Compulsory Insurance Law for Damages to Third Parties Resulting from Vehicle Accidents, it is essential to review the general rule regarding the claim for damages exceeding the compensation to the necessary extent.CONCLUSION: According to the Compulsory Insurance Law of 2016 (1395), the injured party can claim the full amount of damages for medical expenses in addition to receiving the full compensation. However, it should be noted that the compensation paid for damages resulting from traffic accidents does not cover non-material damages. Nonetheless, based on general principles and the ruling stipulated in the second note of Article 14 of the Criminal Procedure Code of 2013 (1392), the injured party from traffic accidents cannot claim non-material damages in addition to the compensation.
