Suchergebnisse

Insurance, as a source of society's aspirations, represents the association of all those who are exposed to the same danger. The coronavirus pandemic has affected various aspects of life, including the insurance industry. Life insurance is one of the types of insurance where the obligations of insurance companies to policyholders have increased during the coronavirus pandemic. The paper analyzes the normative complex of the insurance premium with the specifics and characteristics of this topic. We consider it important to comprehensively explain the premium as an essential element of the life insurance contract. The analysis includes how the coronavirus pandemic is affecting life insurance premiums. This period of change could be a turning point and lead to transformational changes in the life insurance industry. Those who are able to adapt quickly to changes in the environment, who prioritize the insurance consumer and who see this crisis as an opportunity to start from scratch and fundamentally rethink the way they do business will quickly find their place when things calm down.

This article deals with the estimation of the risk‐insurance nexus. We specifically examined the effect of geopolitical risk on insurance premium in a panel of 18 countries, while controlling for the effect of real income. Second‐generation econometric methods were employed for this purpose, and the results provided strong evidence of a positive impact on insurance premiums by geopolitical risks. We specifically found that the impact of geopolitical risks on nonlife insurance premium is higher than the impact on life insurance premium. Real income was also found to have a significantly positive effect on insurance premiums, and the impact on nonlife insurance premium was similarly larger than the impact on life insurance premium. On the basis of income elasticity, we found that insurance has the semblance of a luxury good, and on the basis of the panel causality tests, we confirmed the feedback hypothesis. We therefore conclude that exposure to geopolitical risks raises insurance premiums either as a result of increased insurance demand to hedge against geopolitical uncertainty or as a result of uncertainty tax factored into insurance premiums in unstable environments.