Kundenzufriedenheit als Steuerungsinstrument in einem Versicherungsunternehmen – nur Schall und Rauch oder ökonomisch sinnvoll?

Customer behavior is managed by customer satisfaction in two dimensions: Insurer can profit by a higher customer loyalty und in addition, by a sensitive price behavior of customers. The findings of moderating effects are mean considered and thus, customer satisfaction is a too strong indicator of economic success in established concepts. To mange an insurance company effective, it is a good advice to implement a model that is specific for each company. This model should respect the heterogeneous factors of influence due to customer satisfaction by multidimensional instruments. Hence, insurer may identify drivers of service and work with analysis of correlations to describe the coherence between customer satisfaction and economic success exactly. The alignment for customer satisfaction is worth for traditional insurance companies, but only, if customer satisfaction is understood as an economic valued management that is culturally based in the firm. Manager should account for this suggestion to follow a sustainable story in a saturated competitive environment.     

Medical malpractice: an empirical examination of the litigation process

New data on medical malpractice claims against a single hospital in which a direct measure of the quality of medical care is available are used to investigate the roles of the negligence rule and incomplete information in the dispute settlement process in medical malpractice. We find that the quality of medical care (negligence) is an extremely important determinant of defendants' medical malpractice liability. More generally, we find that the data are consistent with a model in which plaintiffs are poorly informed ex ante about whether there has been negligence, file suit to gather information, and either drop the case if they find that negligence was unlikely or settle for a positive payoff if they find that negligence was likely. We also find that the cases are resolved earlier in the litigation process when the parties are more certain, one way or the other, about the likelihood of negligence.     

Mittelbare Diskriminierungen bei Unisex-Versicherungstarifen

The article drafts a concept for applying the prohibition of indirect gender discrimination in the specific situation of insurance tariffs. In order to reveal indirect discrimination it has to be shown that each gender is affected differently by a differentiating factor to a significant extent. The basis is a statistical comparison between the total group and the disadvantaged subgroup (among potential insurance holders). Because of Art. 5 (1) of Council Directive 2004/113/EC a statistically verifiable risk difference cannot justify indirect discriminations by itself. The provision prohibits not only direct discrimination but also the use of differentiating factors highly correlated with one gender as the correlation leads to the inclusion of a higher gender-specific risk. Therefore only distinctions which are based on the individual insurance record can be justified as their aim is to influence future behaviour. In other cases it is necessary to separate the risk difference causally linked to the differentiating factor from the incorporated gender-specific risk difference.     

Betriebsunterbrechungsversicherung bei kleinen und mittleren Unternehmen

The business interruption caused by a property claim is an existential risk both for large industrial companies and for small to medium enterprises (SME). It is especially relevant for companies working on a more complex sales and production infrastructure. Statistics show that in case of a large property claim the cost of the accompanying business interruption claim frequently exceeds the property claim. In Germany, however, the share of companies opting for business interruption insurance is much smaller than those opting for property insurance. This is especially true for SME that can hardly cover the risk themselves. The goal of this paper is to analyze the insurance decision for a business interruption policy with a special focus on SME. As a database we use the results of a representative survey among 1802 German SME with up to 100 employees. Our results show that the decision for a business interruption policy is not only dependent on hard factors such as company size and industry, but also driven by the so-called “insurance mentality”, which includes risk aversion, insurance know-how and price-sensitivity.     

Risikomanagement bei der Professionalisierung des Frauenfußballs

Out of economic view sports are products, which compete with other leisure activities for different stakeholders (sportsmen, spectators, media and sponsor). To professionalize one kind of sport it is important to create a high (individual) utility for these four groups. It is shown, how with the help of a chronological model – called “chain of success” – by developing of the relations, network architectures can be established, which can help a kind of sport “to the break-through”. The risks arising with the professionalization are analyzed and the management of these risks is discussed. At the end we derive from the analysis a risk-management-manual for the professionalization of one kind of sport, which is applied to women's soccer in Germany, which wants to be established after large successes of the soccer clubs and national teams on a more professional level.     

Telemonitoring bei Patienten mit arterieller Hypertonie – medizinischer Nutzen und Wirtschaftlichkeit

Background

Arterial hypertension is a widely spread disease which can lead to serious adverse events. On the one hand, an optimal therapy should be provided, and on the other hand it is of major importance to search actively for opportunities to further improve usual care.

Objectives

The objective is to conduct a literature review about “Improvement of health care by telemonitoring in patients with arterial hypertension”. Moreover, potential target groups for telemonitoring and the cost-effectiveness of telemonitoring are discussed.

Methods

Firstly, it was searched for relevant reviews with help of predefined search terms and in- and exclusion criteria (2005–2015). Subsequently, the second step consisted of a literature search for RCTs (2013–2015). The final studies (12 reviews/6 RCTs) were systematically analyzed and summarized in a qualitative way.

Results

It is clear that blood pressure telemonitoring is able to lower blood pressure additionally to usual care. With regards to emerging costs, telemonitoring is initially associated with higher costs. When long-term effects are taken into account, telemonitoring can be classified as cost-effective (1 study). Furthermore, specific patient subgroups (such as patients with uncontrolled hypertension) can particularly benefit from telemonitoring.

Conclusions

It is clear that telemonitoring results in an additional reduction of blood pressure compared to usual care. High risk groups can particularly benefit from telemonitoring. Future telemedical studies should focus more on health economic aspects as the current evidence is limited.

     

Defaults and advice in self-customization procedures of insurance

The customization of insurance products is a crucial factor for the success of many insurance companies because it allows customers to tailor the insurance according to their specific needs. Customization can lead to increased customer satisfaction and loyalty. Focusing on two vertical customization methods, by-attribute and by-alternative customization, we experimentally analyze the influence of defaults. Moreover, we compare the effect of defaults to the influence of stated advice. Our results demonstrate that defaults enhance the likelihood of choosing premium insurance compared to a situation without defaults for both the by-attribute customization and the by-alternative customization. However, the customization process itself has no influence on default acceptance. If insurance companies combine a default with extensive advice (i.?e., advice that provides an explanation for why the advice is given), customers are most likely to choose the premium insurance.     

Private Hochwasservorsorge und Elementarschadenversicherung

In light of increasing flood damage, private flood mitigation gains more relevance. We investigate empirically whether the uptake of private flood mitigation measures in Germany is affected by (a) the perceived flood insurance coverage, and (b) public information campaigns focussing on flood hazards. We use a novel longitudinal dataset of more than 3200 households and employ a difference-in-differences estimation approach. The results show that households who state a change in their insurance status and report themselves as being insured mitigate more, not less. This contradicts the expectation of moral hazard and suggests that insurance and mitigation are rather seen as complements than substitutes. Moreover, the survey data suggest that many households falsely expect being flood-insured. Public information campaigns show no measurable effect on the flood mitigation behaviour of households, which poses questions about the effectiveness of large-scale information campaigns. In tendency, our results support the idea of compulsory flood insurance.     

Zur Entscheidungsnützlichkeit eines IFRS-Abschlusses von Versicherern – Analyse der angedachten Regelungen zum endgültigen IFRS 4

In its Discussion Paper from May 2007 for the final IFRS 4 (“Insurance Contracts”), the IASB planned the “Current Exit Value” (CEV) to evaluate insurance liabilities. The aim of this article is to examine the impacts of the planned Current-Exit-Value-Approach on the decision usefulness of insurers' financial statements. In order to evaluate accounting rules, the criterion decision usefulness is divided into two sub-criteria – relevance and reliability. We found out that the Current-Exit-Value-Approach for insurance contracts in conjunction with fair value accounting of relating assets actually generates relevant information for users of insurers' financial statements. But we have serious concerns about a cost-adequate implementation of CEV approach. Furthermore, the reliability of accounting information based on a synthetic fair value is strongly questionable. Only extensive disclosure requirements can bring transparency to users and therefore assure reliable accounting information. Besides, there are other topics that should be reviewed before releasing a final standard (e.?g. customer relationship, credit characteristics of insurance liabilities, unit of account).     

Determinants of M&A success in the European insurance industry

This research analyzes the success of mergers and acquisitions (M&A) for European acquiring insurers using a stock market perspective. In contrast to previous papers that use an event study approach, our analysis is based on the stochastic dominance methodology, in which we analyze short and long term capital market reactions following an M&A announcement. In addition, we examine firm- and transaction-specific determinants associated with superior M&A success. Using a sample of 102 European insurance M&A transactions over the period 1993–2009, our results indicate that acquiring insurers are second-order dominated by their benchmark portfolio in the short term. In the long run, we find no evidence of stochastic dominance compared to their non-acquiring counterparts. Moreover, we find that geographically diversifying acquirers are rewarded by the market, and that transactions in which the acquirer and target have a business relationship before the M&A announcement outperform transactions without pre-M&A participation in the short-term. Finally, we detect a positive relationship between cash payment and acquirers’ M&A success.     

Der Einsatz mehrjähriger interner Modelle zur Unterstützung von Managemententscheidungen

For value based management, internal models are needed which optimally reflect the insurer’s actual risk situation. Hence, the management demands stochastic models which allow a projection of several future years and so permit a risk evaluation for a longer period because annual projections are in general not sufficient for value based management. To meet these demands a concrete suggestion for an internal model in a several year context is made which includes management strategies. A risk based capital is defined in a several year context which can be used for strategic value based management. In a case study different management strategies are discussed and the effects on the return- and risk-profile of the insurer are analysed (in a one and several year context).     

Models for stock returns

Historically, the normal variance model has been used to describe stock return distributions. This model is based on taking the conditional stock return distribution to be normal with its variance itself being a random variable. The form of the actual stock return distribution will depend on the distribution for the variance. In practice, the distributions chosen for the variance appear to be very limited. In this note, we derive a comprehensive collection of formulas for the actual stock return distribution, covering some sixteen flexible families. The corresponding estimation procedures are derived by the method of moments and the method of maximum likelihood. We feel that this work could serve as a useful reference and lead to improved modelling with respect to stock market returns.     

The impact of risk-based regulation on European insurers’ investment strategy

This paper examines the impact of Solvency II on the attainability of target returns, the attainability of portfolio efficiency and the asset allocation of European insurers. I start with a brief introduction to the Solvency II Directive, focusing on the rules for calculating solvency capital requirements (SCR) according to the Solvency II standard formula. The subsequent numerical analysis includes several portfolio optimizations focusing on six relevant asset classes for the 1993–2017 time period. I derive optimal portfolios with respect to the Solvency II capital requirements, with respect to conventional risk measures, and I combine both optimization problems. My results show that the capital requirements according to Solvency II are not adequately calibrated. Nevertheless, due to a solid equity base, the majority of European insurers are still able to attain high target returns and mean-variance-efficiency. However, undercapitalized insurers are not able to hold risk-optimal allocations of equities, real estate and hedge funds any longer. In an environment of very low interest rates, these insurers may also face difficulties obtaining their target returns. To the best of my knowledge, this is the first paper to explicitly incorporate the solvency capital requirement as a numerical constraint into the insurers’ portfolio optimization problem. As a result, my approach first provides insights about the attainable target return and the asset weights as a direct function of insurers’ equity.     

Zur Risikoanalyse von Hedgefonds: Ein datenanalytischer Ansatz

Hedge fund returns have a number of specific features compared to traditional investments which result in problems when applying traditional methods of risk analysis (Markowitz portfolio selection theory, Sharpe Ratio, value at risk calculation based on normal returns). These problems have to be considered adequately by insurance companies when constructing internal risk models and performing risk management for hedge funds in their investment.The present paper has its focus on the departure of hedge fund returns from the normality hypothesis, especially with respect to the statistical quantities skewness and kurtosis (fat tail problem). A statistical analysis of hedge fund index returns gives evidence that the majority of hedge fund returns show substantial departures from normality. In addition, the analysis shows that hedge fund returns are adequately represented by the family of GH-distributions developed in exploratory data analysis. Following this result a risk analysis of hedge fund strategies is performed on the basis of the GH-value at risk.     

Zum Treuhänder des Sicherungsvermögens unter dem neuen Versicherungsaufsichtsgesetz – Auswirkungen der Solvency II-Umsetzung

This paper is about the consequences of the transposition of the Solvency II Directive into the new German insurance supervisory law (VAG 2016) on the trustee for monitoring of the guarantee assets. The trustee of the guarantee assets is a national security mechanism to protect policyholders in case of insolvency of their insurance undertaking. The previous German Regulation of Investments (AnlV) is not valid any more for insurance undertakings falling under Solvency II since 01.01.2016. Instead of legal investments rules insurance undertakings are now obliged to have a (written) internal investment policy, which is also the basis for monitoring of guarantee assets by the trustee. Challenges arise because of the clash of the accounting view (German local GAAP) and the market valuation view of Solvency II. Our analysis contributes to a better understanding of the interplay between unchanged legal provisions and the new economic, risk based perspective of Solvency II.     

Kongruente Rückdeckung von Pensionszusagen durch Versicherungsprodukte

When a German employer establishes a defined benefit pension plan for his employees, it is common practice in Germany to purchase life insurance policies in order to finance the plan and transfer the risks from the plan to the insurer. A complete transfer of risk can only be obtained by purchasing a congruent insurance policy. The present paper develops a formal definition of congruence of an insurance policy to a pension plan. The definition is applied to a simple practical example. It becomes clear that it is almost impossible to obtain congruence of a traditional German life insurance product to an employer's defined benefit pension plan.     

Die Auswirkungen der steigenden Lebenserwartung auf die Prävalenz der Pflegebedürftigkeit in Deutschland

As a consequence of population ageing the number of persons in need of care will rise considerably in the decades to come. While the rise per se is uncontroversial a still open question is whether the increase in longevity will raise or lower the age-specific prevalence of long term care. As there are both empirical studies finding an increase or a decrease of prevalence as life expectancy increases, most existing projections of the number of persons in need of care are based on the assumption of constant age-specific prevalence rates. While this question cannot be answered ultimately from the current point of view, this paper gives some guidance on the range of the future increase in cases. To this end we first analyze the interplay of changes in mortality, incidence and prevalence within a flow figure model. This approach allows for a better understanding of the conditions which must be met for an increase or a decline of the prevalence of care in the future. Based on German data we then adapt a scenario approach to analyze the model's quantitative implications for the prevalence of care and the number of nursing cases in the future. Our results indicate that the number of nursing cases will range between 2,6?m and 7?m persons in the year 2060. Nonetheless, based on the existing empirical findings for Germany and other industrialized countries, a doubling on 4?m persons in need of care seems to be the most realistic scenario.     

Die Gruppenaufsicht nach dem Entwurf der Solvency II Rahmenrichtlinie

The draft framework directive for Solvency II (“Draft”) in general and the section on group supervision in particular is an impressive step towards a modern supervisory system, which is aligned with the economical reality of the insurance groups. It is to be hoped that the Draft will be implemented with only few changes.The Draft distinguishes a general and a special (group support regime) group supervision. The general group supervision constitutes a much more modern concept than the current Insurance Groups Directive, since it partly modifies the solo supervision (internal model to be approved by the group supervisor) and introduces a group based solvency requirement, the calculation of which allows for diversification effects on a group level.The group support regime, which applies only if an application has been approved by the group supervisor, allows to recognise such diversification effects by allowing the parent undertaking to replace paid-up own funds in a subsidiary undertaking by a group support declaration. Conditions for group support are in particular that the respective subsidiary is subject to an integrated risk management and internal control system, that the group solvency requirement is covered with own funds, and that the parent undertaking commits to promptly transfer own funds to the subsidiary where necessary, up to the limit of the group support declaration.     

Vertragsrechtliche Anforderungen an die Gestaltung von „Self-Tracking“-Tarifen in der Privatversicherung

The phenomenon of digitalization is reaching into our everyday lives, and “self-tracking” practices gain new adherents. Yet “self-tracking”, the practice of systematically recording information about one’s health and lifestyle by digital means, is not only an opportunity for the self-tracker to enhance his self-knowledge, but also for insurers to detail and personalize their risk assessment. The following article deals with “self-tracking”-insurance contracts, i.?e. insurance contracts that adapt to the personal risk data of the insured person and offer discounts for risk-aware policyholders. In these contracts, self-tracking data will either be used as a basis for premium calculation or as an element to calculate the bonuses payable as profit participation on with-profit policies. The article focuses on the control of standard terms of “self-tracking”-insurance contracts, but also covers the legal prerequisites under which the insurance contract may be combined with a separate self-tracking-contract between the self-tracker and a third party.     

Zur Verteilung der Abschlusskosten in deutschen Lebensversicherungen

It will be shown that an amortization spread of the acquisition costs to the first N years of a classical german life insurance policy or lifelong annuity always leads to a non negative technical provision at the end of the first year if \( N\,{=}\,5 \) (and the technical provision starting with zero). For usual combinations of the age at entry and the policy duration even \( N\,{=}\,3 \) is sufficient for this purpose. The legal specification given by the new version of VVG in Germany concerning surrender value (i.e. positive value even in case of early lapse) is therefore consistent with the requirement of a amortization spread to 5 years. Additionally a recursion formula for the technical provision with N years spreaded acquisition costs is proven.