Journal of Insurance and Finance 2021 KCI Impact Factor : 0.67

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2004, Vol.15, No.1

  • 1.

    Composite Performance Variable and the Characteristics of Life Insurance Companies

    Jung SeChang | 2004, 15(1) | pp.3~28 | number of Cited : 2
    Abstract PDF
    The purpose of this paper is to develop the composite performance variable which reflects the performance of life insurance companies objectively, scientifically, and also specifically. The insurance companies are classified on the basis of the composite performance developed and the characteristics of insurance companies explaining high and low composite performance are also analysed. The composite performance variable is measured by the mixture of cost efficiency, profitability, and financial soundness. The principal component analysis is employed in measuring the composite performance variable.The findings of this paper are summarized as follows. Firstly, the composite performance variable is more appropriate for the performance of insurance companies than a single performance variable such as cost efficiency, profitability, or financial soundness. Secondly, we observe major and some foreign life insurance companies showing high composite performance. On the contrary, small and medium sized companies and the other foreign life insurance companies exhibit low composite performance. Finally, size and the bond ratio reflecting the characteristic of investment portfolio influence the composite performance positively but the protection ratio is negatively related to the composite performance.
  • 2.

    Measuring Quasi-Economies of Scope in the Property-Liability Insurance Industry

    Hongmin Zi | 2004, 15(1) | pp.29~66 | number of Cited : 5
    Abstract PDF
    It is generally believed that there have been some problems in the economies of scope studies in the property-liability insurance industry. This paper tries to overcome those problems by applying new methodology to the measurement of the quasi-economies of scope in the industry. Results imply that in 2000 the US property-liability insurance industry exhibited about 30% of the quasi-economies of scope in costs and that the estimates are statistically significant. We also find similar results in 1994 and 1997. The study also shows that the estimates from the composite cost function are more realistic and stable than those from the Translog cost function. Overall, the results of the paper seemto support, at least in terms of costs, the consolidation activities of property-liability insurers frequently performed during the late of 20th century .
  • 3.

    A Long-term Amortizing Strategy for Stationary Pension Fund Solvency

    Sung Jooho | 2004, 15(1) | pp.67~95 | number of Cited : 0
    Abstract PDF
    In a defined benefit pension plan, the benefits to be paid out to qualified members are defined according to pre-determined benefit formula. Hence, funding and investment strategy plays a key role in managing pension plans. In this research, we focus on deriving an optimal spread pension funding plan in view of the long-term and going concern valuation basis. In general, the spread funding plan has such a meaning as a process of allocating pension costs smoothingly in a systematic and rational manner. Recently, one of the critical issues in pension profession is how to design the pension funding plan providing simultaneously the pension contribution stability and fund solvency in a defined benefit pension plan. This paper could give an efficient and admissible solution to this issue in view of optimal control. Methodology used in this paper is that firstly, a model is used to represent the financial cash-flow structure of a defined benefit pension plan; secondly, ultimate mean-variance model is derived in view of optimal control theory; and lastly, we adopt the nonlinear programming approach for optimal solution. Our results would be a new application of control theory and an admissible extension to the current pension funding theory and practice.
  • 4.

    A Note: Emotional Intelligence and Performance of Solicitors

    Oh Kiseok , 우승찬 | 2004, 15(1) | pp.97~119 | number of Cited : 10
    Abstract PDF
    At the infant stage of this paper we performed a focused group interview with the persons working in the Korean insurance industry. Many persons said that the performance of a solicitor is closely related with his or her emotional intelligence. In this paper, we attempted to verify the opinion empirically. For the efficient study, we established the hypotheses associated with the emotional intelligence and the performance of solicitors based upon the theories about emotional intelligence and the opinion. The hypotheses were analyzed with the following procedures: measure selection, data collection, reliability test, factor analysis and regression analysis. According to the result of the analysis, among the many constituents of emotional intelligence, only the ability to identify other person's emotional state is statistically significant.
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