G22 - Insurance; Insurance Companies; Actuarial StudiesReturn

Today's modern society is technically and technologically advanced, but it must face increased vulnerability and volatility. In this context, it is important in economics to try to more effectively include the consequences of phenomena with ambiguous or uncertain results in decision-making processes. Therefore, it is necessary to conduct a discussion on the definition of the term risk, including the related concepts of uncertainty and uncertainty.

The article evaluates the necessary economic changes that took place during the nineties with their positive aspects and shortcomings. He is critical of individual approaches to the privatization process. It defines the effect of the transformational changes that have taken place on the current structure in the banking and insurance industry.

Catastrophic risks have in recent years brought with them big question marks overwhat attitude insurers should take towards them. This is particularly a problem insituations of recurrent hurricane-type catastrophes on the east coast of the Caribbeanand the United States, where it is already perfectly legitimate to address the fulfilmentof the contingency condition, which is an essential condition for the recognition ofan insurance claim. The solution, beyond the limits and exclusions imposed onclaims, appears to be to involve markets outside the insurance industry and transferrisk, for example, through catastrophe.

Submitted article is aimed at topic of reinsurance. Currently, reinsurance is an essential part of insurance products business. Regarding to the fact that reinsurance could have different forms and each form has specific features, it is needed to concentrate on individual forms. The article has a goal to get closer and outline nonproportional type of reinsurance and analyze the pricing process in non-proportional reinsurance. Particular subject of analysis is determination of price of excess of loss reinsurance based on Experience Rating method using Burning Cost and Probabilistic Rating models. Thereafter, different calculation approaches are compared between each other and the article is analyzing difficulties arising out of mathematical methods, which are based on historical data and then statistically induced into the prediction of future development of the reinsurance cover.

The article deals with an impact of macroeconomic variables (GDP per capita, unemployment rate and short term interest rate) on life insurance premium in the Czech Republic, Germany and the United States. The theoretical part discusses general characteristics of the insurance market, life insurance and its importance in the Czech Republic. In empirical part is analyzed an influence of factors on life insurance premiums, using econometric models based on time series. It used a model, operating with delayed independent variables (ADL), which defines a short-term relationships between time series and an error correction model (ECM), which examines the long-term relationships between time series. It was found out that the unemployment rate affects life insurance premiums negatively, in all surveyed economies, except Germany, where its influence was positive. Short-term interest rates had a positive effect on life insurance premiums in Germany and in the United States and a negative effect in the Czech Republic. The influence of GDP per capita on life insurance premiums was positive in all surveyed countries.

The article is focused on insurance products related to the indebtedness of Czech households in the area of consumer loans. The aim of this paper is, with the help of defined assumptions, to analyse the product payment protection insurance, its benefit to the final client and identify its appropriate use in the event of an economically rationally behaving entity. The authors analyse insurance conditions and define the pros and cons of insurance for supply-side and demand-side, and also focuses on information asymmetry. For completeness, the text is supplemented also in terms of cost of insurance, through the APR and development of acquisition costs for insurance contracts. Results of the analysis indicate not suitably configured product for clients, as evidenced by the low long-term value of loss ratio indicator, and information superiority on the supply side.

The article deals with quantitative forecast of demand for life insurance in Czech Rep. in years 2015-2018. In order to derive the forecast, causal model created on behalf of OECD member states, including macroeconomic, demographic as well as social variables was utilized. As an equivalent for the demand itself, density of life insurance in population was employed. The results show that in current period of economic growth, the consumption of life insurance should increase as well; that is, however, in sharp contrast with real development in the first half-year of 2015. This contradiction is probably a consequence of changes in insurance distribution, which recently culminated with public discussion on regulation of intermediaries´ commissions. Subsequent alternative scenario of commission cap was modelled as well, with the results indicating fundamental supply-demand implications.

This article elaborates on how information is provided in the terms and conditions of various insurers and how it is related to one of potential demonstrations of information asymmetry. The aim of this article is to evaluate the level of knowledgeableness in the insurance conditions of the characteristic insured value within insured property. The research was carried out till the date Dec 1, 2013.This article analyses the supply side of the insurance market, i.e. insurers, evaluating how insurers inform their clients of the characteristic insured value. Evaluation of the rate of knowledgeableness is achieved by the method of comparison of the standard of information with actual information provided within the insurers' terms and conditions. This article also presents a calculation of the rate of knowledgeableness. The standard of information is established based on analysis and synthesis of knowledge of insurance theory, practice and legislation in the Czech Republic. The method of selection is also used. The outcome of this article is a model of the standard terms and conditions regarding the characteristic insured value, evaluation of knowledgeableness within the Czech insurance market and presentation of specific recommendations for the insurance market to improve the rate of knowledgeableness.

The article addresses international regulation in the field of officially supported export credits. The author emphasizes differences between respective bank and insurance markets as well as differences between functioning of the respective commercial and state supported institutions. Analysis of the competition background at particular markets is followed by assessment of the legal regulation that limits export credit agencies´ operations with impact on Czech exporters´ competitiveness. Czech exporters suffer from partial disadvantage stemming from regulation at Organization for Economic Cooperation and Development level. At the European Union level were Czech exporters partially disadvantaged at the short-term insurance market during the financial crisis. On the other side, they can take advantage from above standard services that provides export credit financing market in the Czech Republic.

This article deals with the actual development and changes in the regulatory approach in a financial services area. Especially it focuses on process of identification of the weaknesses of the regulatory environment in the EU by The High-Level Group On Financial Supervision In The EU chaired by Jacques de Larosière Report and implementation of recommendation contained in the same report. The report of the de Larosière group identified serious shortcomings in the existing system of financial supervision in Europe. There is a single market and across borders operations, but supervision remains uneven and often uncoordinated. A stronger financial sector in the EU in the future needs to have broader convergence between Member States. One of the regulatory reactions of EU is the establishment of, inter alia, a European Insurance and Occupational Pensions Authority and European Systemic Risk Board, influencing an insurance industry. The article tries to identify which changes in the economic system (globalization or consolidation of) may justify broader regulation of industry, considering the risks (including systemic) possibly impacting on insurance companies. The conclusion is given to the changes in the individual regulation of the insurance companies with the comments on expected development.

The paper is focused on selected indicators of the insurance market in the Czech and Slovak Republic. The indicators are used for the analysis of the insurance market during years 1993- 2010. The periods of time is chosen from 1993, because in this year the Czech and Slovak Federative Republic were divided into two separate countries and both insurance markets have been developing separately and independently. The goal of the paper is to find the main differences in the chosen indicators of Czech and Slovak insurance market in the period 1993 - 2010. The methods of analysis and comparison of the indicators the written premium and the insurance penetration have been used applied. The emphasis is put on the total written premium, the written premium of non-life insurance, the written premium of life insurance, the insurance penetration related to the gross domestic product and the insurance penetration related to one inhabitant. The main differences are found above all in the year-on year changes of written premium, the share of life and non-life written premium in the whole written premium and in the insurance penetration related to life and non-life insurance.

Financial crisis has shown significant gaps in risk management system in financial institutions. The major critics focused on an inappropriate usage of the innovative financial products with not adequate reflection of capital requirements for their market risks, not adequate valuations of those products with reliance on external valuation by rating agencies, not transparent settlement via OTC and not adequate collateral management combined with the extreme financial leverage in those positions and unduly concentrations on the dozen counterparties. The proposed changes in regulatory regimes address major gaps in risk management system like the more stringent guidelines for liquidity risk management, the general increase of capital requirements and capital transparency on credit derivatives, securitization, etc. plus the abolishment of hybrid capital and the convertible capital from Tier 1 core capital; the more stringent requirements on risk models combined with the stress testing requirements to cover the extreme market events.

This article is dealt with changes in integration process on financial market, namely for banking and insurance market. Tendency of banks and insurance companies to develop of bancassurance brings synergic effects and intersectional stabilizer. Citizens of each country have different ideas about the financials products and services. Nevertheless bancassurance creates on the market completely a new space but it can be expected that its popularity will not be grow in the future.

This article is dealt about present financial crisis as a result of previous credit expansion through public finance, consumer or mortgage credits above the frame tolerable of market principles. Debt problem vas mask with financial instrument innovations namely structured bonds in securing form. By the help of this instruments were walked around the state regulatory barriers and postpone assignment of disequilibrium. Authors show on the role of investment banking and rating agencies in this process. Special attention is paid to impact of financial crisis on insurance business, partly from the point of view obligations insurance, partly of from the point of view portfolio impacts. The article calls attention on asymmetry information problem and possible influence of crisis impact on stabilization regulatory projects (namely Solvency II for insurance branch) which have had made more efficient governmental supervisory body on financial markets.

The article is dealing with the description of the Czech institutions engaged in the export credit risk mitigation. The analyzed institutions are Export Guarantee and Insurance Corporation and Czech Export Bank. The activities of these institutions described in this article are placed in the general context of the international framework of export credit and insurance and in the context of the export strategy of the Czech Republic for the years 2006- 2010.

The article dealed about finding suitable model market conformal governing on czech financial market. Current organization of CNB as supervisory body in Czech republic are discussed. Futher the study of World bank about corporate governance in insurance branch and by care of consumers on financial market is commented. Authors meaning is not to increase the governing measure on financial markets.

The Nobel Prize award to scientists for thier theoretical contribution to analysis of markets with asymmetrical informations has reawakened debates on the behavior and decision-making of economic player under uncertainty. Becouse insurance is an classic example of such a situation, it is used to illustrate the cases of asymmetry, for the clients is supposed to know better his own exposure then the insurer. In fact, the client´s objective exposure apriori be cannot quantified from the point of wiew of exact sciencis and his decision is futher influenced by psychological and sociological faktors. The insurer is better equipped to make calculations, drawing on past experience and using the laws of statistics, furtermore, he takes antiselection on account. The final part of the paper explores the field of insurance market regulation in relation to the asymmetry of information between an insurance company and its client.