Journal of Insurance and Finance 2021 KCI Impact Factor : 0.67

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pISSN : 2384-3209
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2002, Vol.13, No.2

  • 1.

    A Study on Financial Pricing Models for Fair Rate of Return in Property and Casualty Insurance Industry

    김 동 훈 , 이기형 | 2002, 13(2) | pp.3~42 | number of Cited : 3
    Abstract PDF
    This study analyses the appropriate level of fair rate of return for each insurance lines and shows the methodology to determine fair rate of return. In order to estimate fair rate of return for each lines, I employ methodologies used in the financial theory ; target total rate of return, CAPM and discounted cash flow model. Our results can be summarized as follows; First, using the above methodologies, the estimated fair rate of return for each line is not identical and less than 5% of gross premium. Second, constructing the regulation standard and developing the estimation method for the fair rate of return, target total rate of return approach for estimation of fair rate of return is suggested.
  • 2.

    Consumers' Conjoint Preference and Target Customers between Insurance Products

    정세창 | 2002, 13(2) | pp.43~76 | number of Cited : 11
    Abstract PDF
    The main purpose of this study is to provide useful implications for developing marketing strategies between insurance products such as the automobile insurance, the whole life insurance, the private health insurance, and the personal pension. It is expected to alter consumers' needs for the products due to the recent environmental changes such as price liberalization, financial convergence, and the advent of new distribution channels. The conjoint analysis and the correspondence analysis are employed to find out the conjoint preference for considerations in purchasing a product and a distribution channel, and target customers, respectively. The findings of this study are summarized as follows: Firstly, it is required to adapt a different marketing strategy between insurance products in order to use resources efficiently. The conjoint analysis, for example, shows that the marketing strategy focused on distribution is needed in the automobile insurance. On the contrary it is a better way to allocate resources to the product development, promotion, and pricing rather than distribution in the case of whole life insurance. Secondly, the correspondence analysis shows a great different conjoint preference between customers, which recommends the differentiation marketing strategy and a selection of target customers analytically and sophisticatedly. Finally, with regard to the new distribution channels internet is to be preferred in the automobile insurance and the private health insurance. The preference for banking and professional financial planner is to be high in the personal pension and the whole life insurance.
  • 3.

    An Evaluation of the Horizontal Risk Management of Insurance Companies

    정 석 영 , keonshik Ryu | 2002, 13(2) | pp.77~114 | number of Cited : 1
    Abstract PDF
    We conduct a survey for insurance companies and analyse the insurer's risk management using the horizontal risk management framework in terms of the type of business, the size of company, and the level of risk management. Results indicate that it is required to construct an appropriate strategy in risk management, since there are huge differences in the level of risk management among insurance companies when we use the size of the firms as an independent variable. Specifically, the small and medium(S&M) companies need to construct the risk management structures which take account for characteristics of their own businesses. Conclusively, it is time to change risk management toward the new paradigm such that insurance companies including S&M firms evaluate core parts and characteristics of their businesses and identify the priorities of the parts of risk management. By doing so, they could improve efficiency in risk management by investing their limited resources on the top priority.
  • 4.

    Actuarial Appraisement and Comments on International Accounting Standards on Post-Employment Benefits(Pensions)

    성주호 | 2002, 13(2) | pp.115~141 | number of Cited : 3
    Abstract PDF
    The primary purpose of this paper is to derive actuarial challenging issues and to provide some actuarial notes on the International Accounting Standards on post-employment pension benefits issued by IASB(i.e. IAS 19). In particular, we examines 3 material regulations using actuarial approach - regulation for actuarial assumptions, regulation for pension funding method(including amortization method) and regulation for asset and liability valuation method. Actually, these parts have been systematically developed in the field of actuarial science since the International Actuarial Association was founded in 1895. In this respect, we point out that when setting up and then implementing Korea pension accounting standards, the actuarial comments and viewpoints should be properly taken in account. Through this paper, we are devoted to providing insight into actuarial approach, ultimately to how to harmonize the conflicting interests between employees, employers and government bodies involved in supervising company pension plans, when establishing our accounting standards in harmony with IAS 19. Lastly, I hope that this paper will contribute to bridging the gap between pension fund accounting issues and actuarial issues and furthermore be a starting point of doing reciprocal co-work between accountancy professions and actuarial professions.
  • 5.

    Structured Settlements as a Means of Settling Liability Claims

    마승렬 | 2002, 13(2) | pp.143~170 | number of Cited : 0
    Abstract PDF
    In some claimants cases, a structured settlement can be preferred to a lump sum settlement as a means of settling liability claims and with regard to the benefits received by insurers they should promote periodic payment settlement rather than lump sum cash settlement. In this study we analysed a viable alternative to the traditional method of settling bodily injury liability claims. From the result of this study we verified that a plan to apply 5 % of legal interest rate in the case of using periodic payment settlement will lead to underestimate the present value of lost earnings twice over. So we should calculate future lost earnings correctly using reasonable net discount ratio, and then device plans for structured settlements.