Insurance Economics - Science topic

The bankruptcy of Silicon Valey Bank and Signatire Bank, i.e. banks operating within the framework of investment banking based on equity investments in securities has resulted in investor anxiety, increased levels of uncertainty in financial markets, including equity markets, securities markets. Once again, the question of the possibility of a repetition of the situation of the global financial crisis of 2007-2009 has resurfaced, with central banks intervening swiftly and efficiently to fully guarantee all deposits and bank deposits above the statutory limits set for deposit guarantee institutions. This raises the debatable question of why, 15 years after the global financial crisis of 2007-2009, there are still cases of large investment banks failing when, moments afterwards, the central bank announces the full guarantee of all bank deposits and bank deposits and without quota limits in each of the remaining functioning banks. And this is what happened moments after Silicon Valey Bank and Signatire Bank declared bankruptcy. In addition to this, another debatable issue arises regarding the potential for an increase in the scale of moral hazard in both the commercial and investment banking community as well as in bank customers, which could lead to a significant increase in the level of acceptable investment, credit, liquidity, debt, etc. risks for many businesses. If this were to happen, the result could be an increase in systemic credit risk in the banking sector, which is hardly the purpose of central banking, but rather the opposite. But, on the other hand, some central banks also carry out financial operations on international financial markets, often making substantial revenues and profits. This raises a third debatable issue, which is to consider the key priorities of central banks' activities in addition to looking after the value of money and the stability of the banking system. The central bank's participation in the process of injecting additional money into the economy through the purchase of treasury bonds and carrying out financial operations in the international financial markets, including the foreign exchange markets and with the use of securities to a significant extent can influence the formation of the national currency exchange rate on the one hand and can be a way to generate profits for the central bank on the other. Obviously, the issue of the stability of financial markets, the security of the banking system, the formation of the value of the currency within a certain range, not allowing too high a level of overcredit for investment processes carried out by various economic entities also operating in non-financial sectors of the economy and not allowing too high a level of systemic credit risk in banking are key priorities. These priorities are legally anchored both in the Constitution, i.e. the Basic Law, and in the legal norms defining the functioning of the central bank. Of course, the high-security banking system thus built does not exempt commercial banks and investment banks from the need to continually improve their credit risk management systems. New information technologies and Industry 4.0 are emerging and are also being implemented into banking. New risk factors that are difficult to predict are emerging, such as the occurrence of the SARS-CoV-2 (Covid-19) coronavirus pandemic in 2020. Situations continue to arise where the optimum levels of credit risk are exceeded with regard to the investment banks' equity investments in securities. Consequently, there is still a high degree of possibility that investment banks operating in the capital markets may permanently lose liquidity as a result of certain investment decisions and the quality of the credit risk management improvement process carried out. Also, the banking supervisory institutions, the institutions supervising the financial system should review the issue of the adequacy of the prudential instruments applied by banks, instruments for controlling credit risk, liquidity risk, debt risk, operational risk, market risk, foreign exchange risk, interest rate risk, cyber risk, etc. in view of the changing reality in which banks and the whole banking system operate. It is therefore necessary, in this regard, for banking supervisory institutions, institutions overseeing the financial system, to carry out a kind of ongoing monitoring of the adequacy of the credit risk management systems applied in banks and other risk categories, in order to continually answer the question of whether these systems have become obsolete in the context of the technological progress taking place and the emergence of new risk factors not previously known or not previously present on a large scale in the banks' environment or occurring in their customers. Therefore, both the financial supervisory institutions and the risk management departments of commercial banks, deposit and credit banks and investment banks are once again reviewing the adequacy of the applied prudential and risk control instruments, procedures and credit risk management systems in relation to the situation of the growth of investment and other risks, the possibility of a deepening of the downturn in the economy, in the reality of high inflation, high interest rates, the possibility of stagflation.

In view of the above, I address the following question to the esteemed community of scientists and researchers:

What do you think about this subject?

What is your opinion on this subject?

Please respond,

I invite you all to discuss,

Thank you very much,

Warm regards,

Dariusz Prokopowicz

Please suggest me a nice topic for PhD thesis in Finance. I am just in the introductory stage of PhD.

I am interested in Financial Economics but you can suggest me otherwise (In finance) as well.

Thanks

i want to look at contemporary issues in development finance 

Actually, I am interested to study the effects of various factors on purchasing intention of residential real estate. Finance and price are considered as main factors that purchaser needs to take into considerations. 

Is there any one can help me to recommend articles that used the price and finance as IV factor

How can we determine the aggressive earnings management? also, the discretionary accruals model is it refer just for the aggressive earnings management or not?

Respected All,

I need the papers as above questions. Kindly share if you have.

Regards

Most of the studies in the literature cover seasonal crops when it comes to index-based insurance.  Index-based insurance is also being tested for permanent crops (or non-seasonal crops) such as tea (for instance iin Sri Lanka).  Any research based evidence in regard to index-based insurance for permanent crops?

I am looking for a bank specific transparency index that would measure the level of transparency at the individual bank level.  I defined banks here as SIC 6020 - commercial banks.  I understand there are country specific transparency indices which would not work for me.  My scope includes banks in the EU between 2012 and 2015.

Would appreciate any guidance you can offer.

Thank you.

Henry

Suppose the amount is paid in earlier to the contractor before the actual payment date. For this at what interest rate should be considered to the amount which is paid earlier up to the return of money back to the owner?

what is the main effect of tax amnesty to real estate business, also what condition that will be created after this tax amnesty program already effective and efficient?

I am interested in examining whether there is an earning management in insurance industry and whether more transparency in financial reporting would have any relation with such behavior. Thanks 

Hi Everyone,

I'm in the process of designing a study to assess the impact of a credit-risk insurance scheme being implemented by a NGO in Uganda. There are a number of schemes currently running across the country, however I'm having a difficult time coming up with credible literature on the topic. Can anyone suggest any lit/sources that I can look up on the topic (especially for East Africa, notably Uganda)? Any resource suggestions would be helpful!

Thanks,

Wameq

Hello, I am working on Predictive Analytical model on Usage Based Insurance using Telematics based data.  Any help will be very helpful. does anybody have any sample data set ? 

In many rural areas of "developing countries" small scale agriculturalists (farmers/fishers/herders/...) see the necessity for (financial) investments, they have the capacities (social & human capital like social networks or (traditional) local knowledge) but often not the access to the financial sector to maintain or adapt their practices & lifestyle to changes. I am interested in ways how this gap has been bridged successfully in terms of improving the life of the people (as they desired) while keeping/improving the "natural capital" as well, so increasing the resilience in several dimensions.

I'm looking for excellent articles or books on the history of insurance, especially property insurance. I am most interested in the U.S. and Britain in the 19th and 20th century but sources pertaining to other countries are welcome too.

Many counties adopted the explicit insurance deposit system, and some think it works well because it may decrease the tendency of high risk activity taken by banks. however, it seems some guys don't agree with that and they mentioned it may trigger more risks, like moral hazard. Can anyone share your opinions or recommmend some materials?

hello friends, I am looking for number of employees in 2 indian insurance companies (ICICI prudential life and ICICI lombard co.), how i can find out? this informanction is not in Annual reports.

I want to calculate the productivity of employees.

I want to do ; premium/ number of employees.

I have data on Premium, market share, advertisement, training expenses.

(because I want to check is training is improving productivity anyway?)

help me to find out any other  easy to method to calculate this?

thankyou

surbhi

Independent research has exposed the influence of notorious corporate American insurance giant with successive UK Governments to plan the destruction of the welfare state and the enforced move to healthcare funded by private insurance.

I am interesting in measuring the degree of the adoption of risk management mechanisms by smallholder farmers. Does anyone have an idea how to go about it? Note that in this case I want to measure the degree of both the formal (insurance, derivatives,...) and informal (like community grouping)

I have a problem in my research. Right now I am doing my research about premiums for non-life insurance. I have bond price from catastrophe bond. There is a big question in my head. Could I count the premium for non-life insurance based on pricing of CAT bond? And how would you combine the price with the premium formula? Tthanks

Hi,

In order to build a regression model to derive auto insurance premium risk table, do I need to divide the claim amount for cities with cubic capacity to normalise the claims for each city or can I directly create the dummy variables for the city and run the regression? 

I am totally new to these techniques and not sure what shud be the best approach.

Regards

RJ

see above

I wonder whether there is any theory apart from the expected utility theory, which is subject to several criticisms and the prospect theory, that can be used to explain the individual's motivation for buying insurance?

I also wonder whether it is possible to use the expected utility theory to arrive at a demand function for buying insurance, considering coverage as the quantity?