Query: challenges in insurance industry

title: Challenges in Insurance Industry
abstract: How is possible to manage many numerous risks, in order to achieve human as well as environmental wellbeing, and to form modern insurance industry? This issue is very modern and it requires rational answers. Also, this is field of scientific research. Research results are commonly used by law regulative as row model for the profession and practice. Is mentioned line we can identify challenges in insurance sector. What are the characteristics of these challenges in developed and developing countries? What is the behavior of countries that are liders and those that are not? What are financial components, and what are social and personal effects of the modern insurance industry development? Insurance sector always has its own clear mission: to achieve as high as possible level of spiritual and material safety of the person insured. The vision should be achieving as high as possible level of spiritual and material safety of the person insured in real environment. Mission and vision of the insurance continuously transformed industry from everyday human activity to modern industry. This trend can not be stopped, because we are able to identify more and more risks every day and their identification, processing and management is more challenging. Two components are very important: financial and social. Developed countries formed the insurance industry as powerful and respectful sector that is important part of financial market. Its users are hundreds of millions of citizens and companies. Financial effects of life insurance are much higher that those of non life. Developing countries has no alternative than to follow, as quickly as they can, the developed countries path. That should make easier building own insurance industry. Globalization, controlled liberalization and all migration movements are additional and unavoidable factors that support insurance challenges. What is the suggestion for small, not enough developed countries as Bosnia and Herzegovina or all countries of ex Yugoslavia? Basic scientific truths in this field are continuous: probability theory and great numbers law, actuarial calculus based on relevant empiric research. Insurance challenges start with actuarial calculus and data needed. That follows portfolio formulation and investment of temporarily available funds. That means participation of insurance companies at financial markets as financial intermediates. How these challenges are present and how is possible to manage them in insurance sector of developed and developing countries as Bosnia and Herzegovina?

title: InsurTech Opportunities and Legal Challenges for the Insurance Industry
abstract: InsurTech did not come overnight. Insurance companies from the beginning were experts in collecting and analyzing data to assess risks and to calculate exposures and premium payments. InsurTech is the result of two new developments, however. First, more data has become available. It is said that the volume of available data in recent years has doubled every two or three years. Perhaps even more importantly, the available data now has various different sources. While in the past insurance companies had to rely mostly on the answers they received in response to specific questionnaires and on statistical data, the technical developments in recent years have allowed much broader sources of data. Social media and other third parties are now providing data independent from the customers.  Data analytics collecting, storing and analyzing Big Data volumes from internal and external sources is key. The volume of data as such is not decisive, rather the ability to analyse and draw conclusions. New technologies such as the use of algorithms and artificial intelligence provide efficient tools for this. In particular, the second mentioned aspect creates disruption. Incumbent insurers are confronted with the fact that either they need to invest in acquiring the respective technical capabilities or they need to liaise with third party providers. In addition, they are faced with new competition by new companies targeting specific markets. While many of the new providers are focusing on certain aspects of the insurance value chain, there are also new full fledged insurance companies.

title: Convective Storms and the Insurance Industry: Challenges and Opportunities
abstract: Convective storms affect countries worldwide, with billions in losses and dozens of fatalities every year. They are now the key insured loss driver in the United States, even after considering the losses sustained by tropical cyclones in 2017. Since 2008, total insured losses from convective storms have exceeded $10 billion per year. Additionally, these losses continue to increase year over year. Key loss drivers include increased population, buildings, vehicles, and property values. However, other loss drivers relate to construction materials and practices, as well as building code adoption and enforcement. The increasing loss trends pose a number of challenges for the insurance industry and broader society. These challenges are discussed, and some recommendations are presented.

title: Impact of Robotics, RPA and AI on the Insurance Industry: Challenges and Opportunities
abstract: We consider the current challenges and opportunities in applications of Robotics to financial services and to insurance in particular. Combinations of Robot Process Automation (RPA) with digitization have been considered by the industry, with important benefits in cost reduction and efficiency. We highlight the general benefits of RPA and the related implementation challenges in detail. We discuss more advanced Artificial Intelligence (AI) applications, arguing that such applications depend on the general advancements of AI, where human level interaction is not yet available. We discuss the great potential for AI applications in the near future and consider some initial examples. We also briefly discuss the hard problems of AI in relation to intelligence and consciousness in the introductory part, and briefly look at the implications AI and robots could have for human society and employment.

title: Autonomous Vehicles Challenges for the Insurance Industry
abstract: The objective of this article is to identify and analyse opportunities and threats for the insurance industry related to the popularisation of autonomous vehicles. The analysis uses the data and forecasts included in reports of independent research institutions, which forecast the tempo of development of autonomous vehicle technologies. In the following few years, the global model of transport is going to change as it will gradually move away from the model of possessing individual vehicles and towards using a fleet of autonomous vehicles depending on current needs. The fundamental motivation for changes will be safety, comfort and lower costs. A direct result of the technological revolution for the insurance industry is a reduction of the amount of paid compensation, which is related to the improvement in the safety of road traffic. However, the new model of individual transport is going to dramatically reduce the number of vehicles on roads, and therefore it will result in a significant drop in the income for insurers coming from selling vehicle insurance policies, which currently is one of the most significant sources of income for numerous markets. POJAZDY AUTONOMICZNE WYZWANIA DLA BRANZY UBEZPIECZENIOWEJ Piotr Majewski Katedra Finansow i Rachunkowosci Wyzsza Szkola Bankowa w Toruniu S l o w a k l u c z o w e: ubezpieczenia komunikacyjne, rynek ubezpieczen, pojazdy autonomiczne, bezpieczenstwo na drogach.

title: Challenges to Solvency II Reform in Insurance Industry
abstract: Insurance Industry is going through a very important stage of its transformation the transition from the classical system of management into a risk based management. These changes were launched in Europe by international organizations which deal with the development of the necessary infrastructure for a better managed industry and with a proper legal infrastructure through different European directives in insurance area. These changes have intensity in the finalization of the general technical, legal and structural infrastructure, which would be developed based on three pillars. The consequences of the current financial crisis as well as its impact towards the implementation of Insolvency II have not been analyzed yet. Its implementation, perhaps, would be an adequate response in facing this crisis.

title: BIS A Blockchain based Solution for the Insurance Industry in Smart Cities
abstract: Insurance is one of the fundamental services offered to the citizens to reduce their costs and assist them in case of an emergency. One of the most important challenges in the insurance industry is to address liability challenge and the forging of documents by the involved parties, i.e. insurance company or the users, in order to increase financial gain. Conventional methods to address this challenge is significantly time consuming and costly and also suffers from lock of transparency. In this paper, we propose a blockchain based solution for the insurance industry in smart cities (BIS) BIS creates a big umbrella that consists of the smart city managers, insurance companies, users, and sensors and devices. The users are known by changeable Public Keys (PKs) that introduces a level of anonymity. The data collected by the sensors is stored in cloud or local storage and is shared with insurance company on demand to find the liable party that in turn increases the privacy of the users. BIS enables the users to prove and share the history of their insurances with other users or insurances. Using Proof of Concept (POC) implementation we demonstrated the applicability of blockchain in insurance industry. The implementation results prove that BIS significantly reduces delay involved in insurance industry as compared with conventional insurance methods.

title: Assessing the Technical Efficiency of Traditional and Corporate Agents in Indian Life Insurance Industry: Slack based Data Envelopment Analysis Approach
abstract: The distribution channels play an imperative role in the life insurance industry. In India, traditional and corporate agency are contributing immensely to the profitability of the insurance companies. The challenges faced by the distributional channels such as high attrition, soaring expense ratio and sales inefficiency have created the need to probe into the efficiency aspects of the channel players. In the absence of such studies in India, this article evaluates the technical efficiency of distribution channels in life insurance industry by analysing the data collected from 12 insurance companies for the period 2012 to 2016. The efficiency scores were obtained by applying data envelopment analysis that considered two inputs (number of agents and commission expenses) and two outputs (average business premium and total policies sold) The findings reveal no significant difference in the efficiency scores of bancassurance and traditional agents. Quiet life hypothesis that market share (ratio of premium contribution to total premium) of distributional channels and their efficiency scores are negatively correlated is not supported. Moreover, the slack analysis shows excess inputs per output generated for both the channels. If the companies that scored low in efficiency do not plug the leakages regarding commission as well a number of agents, adverse performance in the long term and consequent financial crisis are inevitable.

title: EMERGING TRENDS IN INSURANCE A STUDY IN INDIAN LIFE INSURANCE INDUSTRY
abstract: Indian Life insurance sector is growing at a faster rate. This sun rising industry has given a platform for economic growth and employment. The great extent of importance realized after it has opened to the private players in the post liberalization period. With many players in business, the insurance regulatory and development authority came with innovative and constructive guidelines for both products and services. Insurance is the backbone in managing the risk of the country. The insuranceproviders offer diversity of products to business, providing protection fromrisk thereby ensuring financial security. It helps individual and organization tominimize the consequences of risk which impart significant cause on the growth and development of insurance industry. Indian insurance industry isfacing major challenges in reaching out willing customers, providing themservices, acquiring and retaining players, product and distribution innovationetc. Apart from addressing the challenges of customers, improving theperformance to achieve profitable growth is another big challenge faced byIndian life insurers. Life insurance sectoranticipate different segments of customers with different needs thereby raisingthe importance of new and competitive dynamics. This paper discusses the new trends and challenges that the present industry is facing. Our study is only limited to life insurance sector. The suggestion and recommendation will help both academician and industry personnel to re engineer their thought in insurance sector.

title: Challenges and Ways to Develop Insurance Industry in KSA Market
abstract: Psychology and ethnic play a central role within Saudi Arabia market. Thus, this editorial argues the cultural and emotion effects on the Saudi consumption of life insurance. Even thought, the present paper intend to understand the reasons of the slowly growth of the purchase of this product and how to increase its rate in the insurance portfolio? Subsequently, this study target to confirm the significant effects of religiosity, optimism, opinion leadership, emotional regulation on Saudi behavior to subscribe in life insurance. Data was collected from two samples. The first sample, count 210 respondents, worn to purify the measurement scales of the variables studied in the exploratory phase. The second sample was administered from belonging 654 policyholders in order to confirm the measures instruments, to verify the hypotheses, validate and re specify the model. Thus, this study bears a theoretical interest for researchers and it is useful for practitioners in this sector.