This study analyzes the profit change of the top 100 US life in surers by applyinga newly developed mathematical programming method. The profit change is decomposed into a productivity effect(technical change and oper ating efficiencyeffects), an activity effect(product mix, input mix, and scale effects), and a priceeffect. The results indicate that for the period 1996-2000, the positive profit changehas been mainly due to scale and output mix effects, while the productivity change has affected the profit change negatively. We found noticeable difference in various effects between stock and mutual life insurers and that the expense preference hypothesis is not supported in the sample. The results also suggest that the agency system has a positive output mix effect, while the direct writing system shows positive input mix effect on the profit change.
This paper analyzes the leadership of sales branch managers who play animportant role in the solicitor channel, one of the major marketing channels in theKorean non-life insurance industry. An empirical model is estab lished based uponthe literature review and the interview with the persons workin g in the Koreannon-life insurance industry. The model employs the managerial l eadership, theleadership for integration and the creative leadership as the independent variable.
Job-satisfaction, organizational commitment, attitude on team-work, stress, personal performance and branch performance are selected as the dependent variables measuring the effectiveness of the leadership. According to our empirical analysis, the leadership of sales branch managers is significant at the sales branch level. The managerial leadership and the creative leadership are more effective than the leadership for integration at the individual level.
The insurance broker should deal with his business with good ca re. Theauthorization for insurance broking is mostly given by the insu reds, but sometimesthe insurers make the broker his agent. Insurance broker has to carry out theentrusted work to make the insured safe by using his profession al ability and experience sufficiently. He should obey the truster’ s mandates principally.However, the active advice and inspection by his own decision of the insurancebroker is demanded at times.
The insurance broker’ s duty of good care has been concretized as the duty of theentrustees.
Why should be the insurance broker so careful with his duty? It can be answeredwith three reasons, which is the professional characteristic of the insurance brokingitself, the deep belief of his counterpart(the insured) and the social practice’ sstandard. Though very strictly determined liability of the insu rance broker tocompensate the injured which has been caused by his negligence of the duty canmake the truster(the insured) safe, the insurance broker himsel f may fall in thefinancial difficulties. It is desirable to make his burden redu ced for the activation ofthe insurance brokerage market as possible. The way to solve the problem is to contract the liability insurance, to try the legislation for the reduction of the insurance broker, to found the corporate organization or to use the fellow trading colleague, to contract with the truster(the insured or the insurer) with his duty documented and concretized, or to connect with the skillful professionals of the risks.
The purpose of this paper is how to build an efficient health i nsurance system, aswell as a competitive health and medical industry in Korea. The present nationalhealth insurance system (NHI) has serious moral hazard problems over all of thebehaviors of NHI, covered, and benefit providers. The main reas on is that thesystem ignores the incentive mechanism and heavily relied on th ecommandsystem. Moreover, the monopolizes health insurance industry by NHI led to theunbalanced supply of medical resources and made tremendous soci al costs.
Supplementary private health insyrance can be a solution for ma ny problems ofthe NHI. First, it will monitor the provider more efficiently t han NHI does. Second,it will participate in overall activities of decision making pr ocess on health insuranceactively so that the bargaining power of insurers including NHI will bereimbursement cost. Third, it will provide various packages of insurance servicewhich individuals want based on quality-premium relations.
The increase in the health cost can be worried. However, the pr ivate sector willchange the health industry to be more efficient and reduce the health care cost with the higher satisfaction of the covered. The basic change of health insurance system suggested by this paper are as follows; first, the health insurance system should be changed to a diversified and multi-pillar system, second, the private health insurance should cover the co-insurance fee as a supplementary to NHI, third, the Australian type lifetime health insurance coverage is recommended.
The objective of this paper is to empirically investigate and compare pricing accuracy of stock index futures models; cost-of-carry model, general equilibriummodel and neural network model. Neural network models could min imize pricingerrors because they do not require unrealistic assumptions, e.g . , underlying assets’stochastic processes. In order to achieve the research objectiv e, we employ threeevaluation statistics; average pricing errors, MAD(Mean Absolut e Deviation) and MSE(Mean Square Error). We find that the general equilibrium model outperformsthe cost-of-carry model and that the neural network model ‘with more lagvariables’performs better than the general equilibrium model. The results imply that not only general equilibrium models but also neural network models could be potential alternatives for more accurate pricing models on stock index futures and that further studies on these models should be warranted.