Journal of Insurance and Finance 2021 KCI Impact Factor : 0.67

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pISSN : 2384-3209

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2010, Vol.21, No.1

  • 1.

    The Effects of Market Interest Rates on the Rates of Return on Investment of Life Insurance Companies

    최영목 , 황진태 | 2010, 21(1) | pp.3~35 | number of Cited : 1
    Abstract PDF
    This paper shows how market rates of interest would affect rates of return on the investment of life insurance companies. To analyze the effects, we include interest rates, rates of return on stocks, and each volatility in the regression model for independent variables with rates of return on assets for a dependent variable using a partial adjustment model. We summarize the results as follows: First, the interest rates have a statistically significant and positive relationship with the rates of return on investment for both life insurance industry and three classes of life insurance companies. This result seems to be due mainly to a positive relationship between the interest rates and the rates of return on loans and short-term securities. Second, the volatility of interest rates is negatively related to the rates of return on investment for small, medium and foreign companies, while positively related to those for large ones. Third, the rates of return on stocks and their volatility are positively related to the rates of return on investment, but the effects appear to be negligible relative to the market interest rates. Finally, the speed of adjustment estimated for small and medium companies is relatively high and the maturity of asset portfolios is short.
  • 2.

    Do People with Private Health Insurance Choose Private Pensions?

    Changwoo Lee | 2010, 21(1) | pp.37~65 | number of Cited : 12
    Abstract PDF
    This study evaluates whether private health insurance and private pension are alternatives in preparing for the elderly stage in life. Particularly, I test whether people with health insurance is likely to have private pension as precautionary savings. A bivariate probit model is employed to treat the correlation of errors between two equations. The result shows that people with private health insurance tent to have private pension at the same time. This result implies that private health insurance and private pension could be complements in terms of preparation for old age.
  • 3.

    A Study on the Improvement of the Supervision on Insurance Agents - With a Special Focus on the Independent Corporate Agency -

    Chun, Woo Hyun | 2010, 21(1) | pp.67~108 | number of Cited : 4
    Abstract PDF
    The recent changes in insurance intermediaries should help establishing sound work ethics of the insurance intermediaries and enhancing the trustworthiness of the insurance contracts. And this is why we have to carefully examine the prudence of insurance intermediaries. Since the majority of insurance contracts is made through the insurance intermediaries, the prudence of insurance intermediaries is the key to discuss the soundness of the insurance contracts as a social issue. The revised draft of the Insurance Law is imperfect in that it fails to make the independent insurance agency accountable for its violation. It is the problem of Article §102 of the Insurance Law and one of the important issues of insurance agency's supervising programs. In this paper, I propose a new revised draft about the insurance agency making independent corporate insurance agencies accountable for their violation, upholding their guarantee money, preventing by-passing contracts and inadequate support of the independent corporate agents, effectively sanctioning the violating agents(prohibition of re-registration), securing transparency and self-control system, making a duty of continuing re-education program, announcing the wrong sales cases and planning of rational commission.
  • 4.

    The Crowding-out Effect of the Mortgage Loan on the Household Consumption

    Lim, Byung-in , 강성호 | 2010, 21(1) | pp.109~142 | number of Cited : 6
    Abstract PDF
    Our study estimates whether mortgage loans crowd out household consumption by applying six types of consumption functions to『 Household Credit Trends』data released by the Bank of Korea. Major empirical findings are as follows. First, GDP has a positive and significant impact on the household consumption using two different dependent variables. Second, the mortgage loans have a negative and significant influence on the consumption in almost all consumption functions. It means that any type of the household borrowings might decrease the household consumption. Third, a dummy variable of the real-estate policy in August 31, 2005 has a positive and significant coefficient, implying that households have increased the consumption since the implementation of the policy. It is because the interest burden has reduced after that. These findings tell us the following policy implications: reconsidering the deregulation of real estate speculation policies,making a scheme to prevent excessive increase in mortgage loans, policies to decrease the possibilities of the bankruptcy of financial institutions and the households which have borrowings from them, and even a lower potential growth by reducing consumption from increasing interest payments.
  • 5.

    Obesity and Employer-Provided Health Insurance

    김대환 | 2010, 21(1) | pp.143~185 | number of Cited : 0
    Abstract PDF
    The rising prevalence of obesity may represent a substantial drain on employer-provided health care benefits. This study addresses whether obesity status affects a probability of employees’obtaining jobs that offer health insurance. Using two sub-samples (household heads and individuals who never married) from the 2003 wave of the Panel Study of Income Dynamics (PSID), we analyze men and women separately. We use a logit model to analyze the effect of workers’obesity status on the chance of having employer-provided health insurance and then utilize a non-linear decomposition technique that uses estimated coefficients from a sample of the non-obese to simulate the distribution of the obese employees. We find consistent results for the subsample of household heads and never married workers: obesity is negatively related to the prevalence of insurance for women, but not for men. Utilizing decomposition technique, we find that obesity sorts females into jobs that tend not to provide employment-based health insurance; however, no significant job-sorting effect of obesity for males is found.
  • 6.

    Long Memory and Structural Breaks in Extreme Value Estimators - The Case of the U.S. Stock Indexes -

    YONGJAE KWON | 2010, 21(1) | pp.187~237 | number of Cited : 3
    Abstract PDF
    With numerous studies reporting long memory in financial volatilities, long memory became one of the stylized facts of volatility time series. Several researchers, however, including Granger and Hyung (2004) and Choi and Zivot(2007), argue that the long memory property of financial volatilities may be amplified by occasional structural breaks. This paper investigates the validity of the previous studies - whether long memory in extreme value estimators is overstated by structural breaks. I find an evidence that the degree of long memory in the extreme value estimators is inflated by structural breaks. I also find, however, that significant long memory is still discovered in the extreme value estimators even after the multiple breaks are controlled in the estimation.