This research analyzes the determinants of insurance risk profit ratio in Korean
life insurance companies. Using panel data, we evaluate several factors both firmspecific variables and other socio-economic variables. We show that product portfolio(morbidity benefit vs. mortality benefit), marketing channel(direct vs.financial planner), and ownership type (domestic middle-small size company vs.foreign company) are significant variables. However, size(number of business in force) is not significant factor. Decreasing profit ratio since 2003 is related to the social and economic changes such as increasing of screen ratio in program for early detection of cancer and improvement of morbidity. These results imply that there are obvious limits on the performance management of insurance risk profit.Therefore, life insurance companies should target feasible profit level and use nonguaranteed
elements. Also optimal portfolio and marketing channel strategies are necessary. Finally, life insurance companies should project future cash flow to cope with the potential deterioration of solvency.
This study analyzes a causal relationship among various influencing factors using Structural Equation Model and shows it’s implications. Firstly, customer oriented services and creditability of services give positive influence to service satisfaction. Therefore these two services are prior factors of service satisfaction. Secondly, customer oriented services and service satisfaction do not exert a direct influence on customer loyalty directly but effect on indirectly through intermediation factor which called immersion. Finally, study finds out that service credibility much effect on customer loyalty and service satisfaction than customer-oriented services. Considering creation of service creditability is much helped by customer-oriented services, however, service credibility and customer-oriented services exert a favorable influence on customer loyalty and satisfactions directly or indirectly.
In this study, we compare from the international perspective accounting
standards governing retirement pension which are Korean International Financial
Reporting Standards(K-IFRS), Korean Generally Accepted Accounting
Principles(K-GAAP), International Accounting Standards (IAS), and Statement of
Financial Accounting Standards (SFAS). Then we attempt to investigate the
probable effect of K-IFRS on pension plans based on the scenario analysis and
suggest policy measures. According to our results, because of the increased volatility
of pension liability, the adoption of international financial reporting standards for
pension plans will directly or indirectly affect the choice of pension products,
assumptions of pension liability, and risk management for pension plans. Therefore,
it becomes necessary for financial authority to take several measures for
improvement. Among other things, regulators need to execute risk supervision
policies leading to pension asset allocation based on liability structure to secure the
financial soundness of pension plan scheme. In terms of supervision on the reserve
adequacy, it is proposed that pension actuaries examine the adequacy of pension
reserve. In particular, detailed regulation is required to ensure the objectivity in
making actuarial assumptions.
Based on household panel data (1995-2000) in rural China this study presents
the empirical evidence that rainfall variability as a proxy for yield risk influences the portfolio composition of a farming household. This paper supports for an allocation toward liquid assets in response to more volatile rainfall variability. It is observed that cash and deposits are important instruments for their precautionary wealth allocation, while it is difficult to find the similar evidence for grain stocks. It may imply that financial instruments have been substituted for conventional physical ones in precautionary portfolio allocation while dramatic institutional changes of the post-reform period have been proceeded in contemporary rural China.
This research is aimed to reveal the relationships among mecenat motivation,
identity attractiveness, and organizational identification. For this purpose, it brings the theory of auto-communication. In this research, 318 salesmen in the insurance industry completed the questionnaires and SPSS and Amos were employed. The findings are: Firstly, a measure of mecenat motivation consists of three subscales that measure value oriented motivation, stakeholder oriented motivation and profit/strategy oriented motivation. It was confirmed that the factor structure of mecenat motivation yields a satisfactory fit. Secondly, value oriented motivation of mecenat increases identity attractiveness and organizational identification. Thirdly, identity attractiveness plays a complete-mediating role between value oriented motivation and organizational identification. Discussions and implications of these
results are included.