2018, Vol.29, No.4

Journal of Insurance and Finance 2023 KCI Impact Factor : 0.59

pISSN : 2384-3209
https://journal.kci.go.kr/kiri

This paper examines the performance of monthly initial premiums and channel diversification across a sample of life insurers that operate in solicitors (exclusive agents) organization from 2007 to 2016. While the size of registered solicitors decreased by 1.7% per year, the size of active solicitors decreased by 3.3% during the same period. The active rate of solicitors was around 61.0% in 2016. As the life insurers' dependence on new business has diversified into various channels such as independent agency (GA), bancassurance, and direct channels, the share of solicitors has dropped from 62.5% in 2007 to 42.6% in 2016. Despite the downsizing of solicitors, exclusive agents are still an important factor for new business. Panel fixed effect models represent that the overall performance of new contracts increases by 0.537% when the size of active solicitors increases by 1%. As the share of whole-life insurance products increases, the degree of channel diversification decreases, indicating a significant relationship between the product portfolio and the channel strategy.

The purpose of this study is to analyze empirically surrender behavior for Type 3 insurance contracts using the Korea Health Survey data. For the selection of research models that reflect the characteristics of the long-term panel data, we conducted a Housman test and determined the fixed-effect panel logistic model as a suitable model. The main results of this paper are as follows. The possibility of the surrender for Type 3 insurance (odds ratio) increases with more insurance contracts, more annual payment premium, those who are irregular workers and more hospitalization experience. But the possibility of the surrender for Type 3 insurance decreases in the case of higher personal medical expenditures, those who engage in wholesale and retail, lodging, and catering, those who engage in education services, and those who have a spouse and the heads of households.

When IFRS17 is applied, insurance contracts should be valued in a way that is different from the current GAAP in measuring insurance contracts. Measuring the contracts, risk adjustment should be measured separately. In this paper, we have measured the mortality rate risk adjustment using the Lee-Carter model. As a result of the analysis, risk adjustments for annuity products for men and women are 0.69 ~ 2.22% and 0.30 ~ 1.45% respectively. Risk adjustments for whole life products for men and women are 0.93 ~ 3.51% and 1.16 ~ 2.81% respectively. For the same sex and age, the risk adjustment of the whole life product is bigger than that of the annuity product. In the case of the annuity product, the risk adjustment of women is smaller than that of men in general. In addition, as the entry age increases, risk adjustments of annuity products increase and those of whole life products decrease. The results seem to be consistent with the nature of risk adjustments in IFSR17. We expect this study to contribute to the basic research on how to calculate the risk adjustment for the mortality rate, and it can be used as a basic study to discuss risk measurement method in the future.