Journal of Insurance and Finance 2021 KCI Impact Factor : 0.67

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pISSN : 2384-3209
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2003, Vol.14, No.3

  • 1.

    An economic analysis on the competition betweenan off-line channel and an on-line one in theinformation asymmetrical insurance market: a case of automobile insurance

    Lee Yun Ho | 2003, 14(3) | pp.3~26 | number of Cited : 5
    Abstract PDF
    In this article, we tried a theoretical analysis on issues concerned with purchasing of on-line insurance which competing with off-line one in the information asymmetrical insurance market. We verified the following fact and drew interesting implications about on-line's economical significance as a result of the analysis. 1. Where an on-line insurance characterized by the compensation uncertainty and low pricing etc set up low risker a target market, optimal insurance coverage is the full coverage's off-line insurance to high-risker, while the partial coverage's on-line one to low-risker. Such results imply that we can improve adverse selection problems resulted from asymmetry information, if we can design individually a separating contract so that self-selection mechanism does working. 2. In order to survive on that on-line insurance shows the advantage of low price, as is paradoxical, a excessively low pricing strategy should be sublated. Because more price difference than constant level may cause high-risker's adverse selection 3. So that the inexpensive price in on-line amounts factor to become winner, an exquisite underwriting system should be constructed, which requires investment of huge amount of money. 4. It is the fact that on-line' success is influenced by off-line efficiency as well as on-line itself's one, furthermore influenced efficiency of market whole. 5. We can expect role that restrain injustice contract from consumer's misgiving about that quick and correct service is available like off line when accident occurred.
  • 2.

    The Channel Strategies Through Forecasting the Market Share of New Distribution Channels,Comparing Policyholders’Satisfaction andPreference for Channels

    Jung SeChang , Ahn Chul-Kyung | 2003, 14(3) | pp.27~65 | number of Cited : 20
    Abstract PDF
    The purpose of this paper is to provide useful implications for developing multi-channel strategies for insurance companies and bancassurance strategies for banks. In order to find out valuable information on multi-channel strategies the market share of new distribution channels such as DM and bancassurance is forecasted. The reasons for changing distribution channel from traditional one to new ones are also analysed. In terms of the market share, DM channel in the long-term accident insurance, the saving-types insurance, and the whole life insurance will be more than 10% in the long-run. Banks will dominate in the saving-types insurance and the personal pension. With regard to the reasons for changing distribution channel, we consider two aspects: the unsatisfactory factors from the traditional channel and the attractive factors of new channels. The quality of service and the level and coverage of benefits are more important factors than other factors such as the level of premiums, rate of returns, and solicitors' expatiation. The marketing strategies of traditional channel focused on the service and benefits are thus recommended to appeal to customers. The attractive factors of bancassurance and DM are stability and low cost, respectively. It is thus desirable for the new channels to plan marketing strategies emphasizing the attractive factors.
  • 3.

    A Study on the Business Strategy ofSmall-Medium Size Insurance Companies

    Jung Young Jeong , 김형도 | 2003, 14(3) | pp.67~98 | number of Cited : 0
    Abstract PDF
    Korean general insurance industry is facing a lot of opportunities and challenges because of deregulation, technology innovation, and globalization. Significant change is underway in the Korean financial sector due to opening up the market to foreign players and other domestic financial services players, changing customer needs and technology shocks. Today's threatening, rapidly changing environment requires insurance companies, especially small-medium size insurance companies to reevaluate their business strategies to survive in a competitive turmoil. To continue to be a insurance service provider in Korean insurance and financial services market, small-medium size players have to build a comprehensive view of likely future competitive landscape, and based on this understanding, a define a set of several strategic priority initiatives and execute against those. For this purpose, this paper first looks at the current trend of Korean domestic general insurance industry, then analyzes problems and opportunities of insurers and finally proposes a set of several strategic priority initiatives for small-medium size insurers to success in the future. Internally, some of the key competition factors are channel efficiency, price and product competition, customer management, and service efficiency. Developing and implementing strategies to survive and prosper for small-medium size insurers will take significant effort, it is clear that outsourcing or partnering with other insures( including life insurers) and other financial institutions will be a critical element for success.
  • 4.

    A Study on the Investment Supervisory andRegulation of Retirement Pension Funds

    keonshik Ryu , 이태열 | 2003, 14(3) | pp.99~146 | number of Cited : 1
    Abstract PDF
    The main direction of the investment supervisory and regulation of Retirement Pension funds should focus on the vesting guaranty of the members of a pension plan rather than the activation of the financial market. Therefore, it is required to establish the payment guaranty system for the purpose of preparing for bankruptcy of the firm which operates the pension system, deterioration of pension funds caused by ill-performed operation of pension asset, and bankruptcy of fiduciaries. Furthermore, Defined Contribution(DC) Plan needs to play a role not in the function of saving but in the function of pension by providing tax incentives for pension. In addition, controversies under the current contract governance system such as the monetary contract between fiduciaries and firms, should be carefully examined to settle down the pension system early.
  • 5.

    Actuarial Valuation & Financing ofNational Pension Plan in Korea

    Yongha Kim | 2003, 14(3) | pp.147~176 | number of Cited : 4
    Abstract PDF
    This paper has attempted to find actuarial valuation methodolog y of National Pension Scheme.The paper is composed of as follows. First, the Paper reviewed the financialprojections of NPS(Chapter II), then explored financing methods of pensionsystem(Chapter III), and then the direction of policy measures for financingNPS(Chapter IV). The analysis of this Paper has been based on t he outcome of asimulation model which has incorporated various variables to re flect the factorsaffecting the pension system.The results of the simulation confirmed that financing methods exerts greatimpacts on generational redistribution as well as soundness of national pension.This study confirmed that the suitable combination of pay as yo u go method andfunded method should be made for sustainable NPS.