Section one of the paper provides a broad overview of the nature and objectives of the projects. Section two contains an objective view of the impact of FIRST funded projects on the growth in insurance markets as measured by insurance market penetration.
... Exibir mais + Rigorous data analysis was used to isolate exogenous factors other than the project intervention that may have led to a change in the insurance premiums as a percentage of GDP. The paper showcases in section three, the dynamic view and multipronged approaches to the insurance market development by highlighting country case studies, with different primary objectives, towards the overall goal of the insurance market development. The case studies also consider the specific insurance market interventions that can stimulate wider financial sector development objectives. Applying the drivers and stages discussion as an analytical framework, section four takes stock of numerous interventions of the FIRST projects implemented by the World Bank and extracts some key lessons learned that could be used as a guide to inform the design of future intervention, and by policy makers in pursuit of insurance market development. Finally, section five provides some overarching conclusions and takeaways.
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Documento de Trabalho 144661 JAN 01, 2020
Wrede,Peter Friedrich Wilhelm; Stewart,Fiona Elizabeth; Rawlins,Marlon Rolston; Shindo,TetsutaroDisclosed
The insurance industry in Albania is relatively new. Prior to 1991, there were no insurance companies operating in the country. The insurance industry has been undergoing critical changes during the last decade.
... Exibir mais + The life market in Albania is small, and still dominated by credit life insurance. Life insurance was introduced only in 1997 and made up about seven percent of gross written premiums. Risk based supervision was rolled out in 2016, starting with comprehensive on-site inspections in three non-life insurance companies using the risk-focused methodology. The RBS method led to a market database that helps evaluate the risk profile of each insurance company, as well as the risk level of the insurance market as a whole. The country’s good economic development in the last two decades has contributed to the insurance market’s development, but so have good policy choices informed by technical assistance projects and other interventions by the World Bank Group and the FIRST trust fund. Without aspiring to the impossible task of attributing causal relationships between these interventions and specific market developments, this report will nonetheless suggest what role these interventions may have played in developing Albania’s insurance market, so as to guide the way forward in this country and future developmental strategies of other countries.
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The study examines a range of data sets to develop the analytical basis for the review, conclusions and recommendations. Insurance development is driven by a large range of factors, some of which can be better observed than others.
... Exibir mais + Data is important but understanding what it means is also important. Benchmarking results, including cross country analysis and other research to understand the meaning of calculated values, is one element that is under‐represented in industry analysis. Demand and potential demand for insurance are also considered considering the nature and level of risk being faced as the basis for the examination of insurance markets effectively assuming individuals and entities should and would take out insurance if they were offered it against these risks. Other dimensions examine perceptions of risk, insurance as a solution, and then other barriers to access that may limit the extent that a risk that can be insured coverts into a risk that is insured. In this section, we approach both a range of potential risks and their trends along with data about clients. Through the report, elements of the regulatory and supervisory arrangements are addressed as they are relevant. For those that are not specifically raised in these sections, a further section covers the remaining review of regulatory arrangements as needed. The diagnostic review has also been conducted through an extensive set of fact‐finding stakeholder meetings to gather input, validate and supplement the data‐based analysis.
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Based on a survey of households in 10 Central Eastern European and Western Balkan countries, this paper presents new and unique evidence on which households have savings and how they save.
... Exibir mais + The paper shows that the percentage of savers is low, and savings are frequently informal. Formal savings are dominated by bank savings, and participation in contractual and capital market savings is very low in comparison to high-income countries. Poor households are significantly less likely to have any savings; income also has an effect, albeit smaller, on the choice of formal versus informal savings. With a high density of bank branches in Central Eastern European and Western Balkan countries lack of physical access to banks does not explain the lack of formal savings. Lack of trust in banks reduces the probability of formal savings, especially bank savings.
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Documento de trabalho sobre pesquisa de políticas WPS8751 FEB 19, 2019
The study examines a range of data sets to develop the analytical basis for the review, conclusions and recommendations. Insurance development is driven by a large range of factors, some of which can be better observed than others.
... Exibir mais + Data is important but understanding what it means is also important. Benchmarking results, including cross country analysis and other research to understand the meaning of calculated values is one element that is under‐represented in industry analysis17. Demand and potential demand for insurance are also considered considering the nature and level of risk being faced as the basis for the examination of insurance markets effectively assuming individuals and entities should and will take out insurance if they were offered it against these risks18. Other dimensions examine perceptions of risk, insurance as a solution, and then other barriers to access that may limit the extent that a risk that can be insured coverts into a risk that is insured. In this section, we approach both a range of potential risks and their trends along with data about clients. Through the report, elements of the regulatory and supervisory arrangements are addressed as they are relevant. For those that are not specifically raised in these sections, a further section covers the remaining review of regulatory arrangements as needed. The diagnostic review has also been conducted through an extensive set of fact‐finding stakeholder meetings to gather input, validate and supplement the data‐based analysis.
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Highly competitive markets or fragmented insurance markets are usually characterized by some irrational competition. In less developed non‐life insurance markets, this competition may be most visible in loss making compulsory motor insurance.
... Exibir mais + Usually it is a large proportion of the business mix. Irrational price wars erode profits. A strict or penal treatment of claimants erodes trust. The societal and policy objectives of the compulsory lines of business are undermined and even can be forgotten altogether. This note examines the contention that the combination of markets that are too competitive and have an overreliance on compulsion also lack capacity to innovate. This is the first of a series of notes on market structure and development, largely from the same data set but separated for ease of access to readers with a particular interest in one or another situation.
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