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Pavel Valeriev Dimitrov
Possibilities for Optimizing the Technical Reserves Related to Motor Third Party Liability Insurance
Summary:
In recent years, Motor Third Party Liability insurance has been leading in terms of premium income earned on the Bulgarian insurance market. This requires the creation of significant amount of technical reserves by insurers. Optimizing their size is a priority for any insurance company.
The article describes some problems related to the implementation of the Motor Third Party Liability Insurance in Bulgaria. The main problems in this connection come from existing regulations within the country. The article also proposes possible solutions for optimizing the amount of technical reserves such as: introduction of the Bonus - Malus system; on-line sale of the insurance policy; eliminating the requirement to stick a holographic sticker on the vehicle glass.
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Andrey Zahariev, Galina Zaharieva, Margarita Mihaylova
Digitalization and Recruitment of Human Resources in Banking and Insurance Companies: A Comparative Analysis
Summary:
The present study has a theoretical and empirical perspective in its construction. In the first aspect, the aim is to study the theoretical achievements in the field of digital technological solutions for the selection of human resources, their potential advantages and disadvantages, and in the second aspect - an analysis of the policies of the Bulgarian financial enterprises in the field of digitalization, incl. human resources, the practices of using modern techniques of selection, the potential for their improvement and refinement. The object of the research is the Bulgarian enterprises from the banking and insurance sectors, and the subject - their digitalization policies and the modern methods of selection of human resources that they use. The surveyed insurance companies form 65.35% of the gross premium income of the Bulgarian non-life insurance market as of 30.06.2022. The studied credit institutions are licensed by the BNB commercial banks in the Republic of Bulgaria, which manage 70.04% of the assets in the banking system of the studied national market as of 30.06.2022. The comparative analysis of the two groups of financial enterprises shows both similarities and significant differences. Due to the larger number of managed personnel, commercial banks are developing their own platforms for digitization and HR selection, while the process for insurers is more conservative and relies on intermediaries. The received answers to questions on the Likert scale related to digitalization in human resources management establish significant differences in expert assessments for the two groups of financial enterprises.
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Radka Vasileva
Applying the "Insurance Maximum"
in Determining the Insurer's Retention. An Example from the Bulgarian Property Insurance Market
Summary:
Reinsurance is a way for insurance companies to reduce fluctuations in their payments and to improve their financial stability. One of the problems that the risk theory in relation to reinsurance has to solve is that of the insurance maximum, i.e. the largest amount of sum insured up to which an insurance company can accept liability without worsening its financial sustainability. Through the use of data on the activity of insurers in Bulgaria, the article calculates the "insurance maximum" for individual types of property insurance. Thanks to the obtained results, it becomes possible to make a quick decision regarding the "largest amount" of the sum insured that an insurance company can take without increasing the relative average risk.
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Ventsislav Vasilev
Information from the Cash flow Statement – Possibilities for Analysis of the Activity of Insurance Company
Summary:
Cash flow statement is an integral part of the accountability of the insurance company. It is an important source of information when analyzing the financial structure of the insurance company and the types of amount of the cash flows determined of its work. Through the cash flow statement is drawn attention to the distinction between types of activity and direction of cash flows. Using some elements of the report is a prerequisite for the calculation of indicators for adequacy, profitability and rate of development of the individual cash flow. Thus becomes possible to extend the analysis of the business of the insurance company.
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Rumen Erusalimov, Nikolay Valeriev Iliev
Development of Motor Third Party Liability Insurance
in Bulgaria
Summary:
The main objective of the study is to assess the current state and prospects for the development of the insurance "Motor Third Party Liability" in Bulgaria.
The dynamics of the realized gross written premium income generated by insurers and the insurance payments made by them during the period 2010-2021 are tracked in the study. The state of the insurance "Motor Third Party Liability" in Bulgaria has been evaluated using the indicator "Net Claims Ratio".
Based on the conducted research, it was concluded that the "Motor Third Party Liability" insurance product is profitable and has consistently held the leading positions in market share since 2010. The trend indicates that this is likely to remain unchanged in the near future.
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Momchil Marinov
Development of Industrial Fire Insurance at JSIC "Ozk-Insurance" JSC
Summary:
The main purpose of the study is to assess the state and prospects for the development of the "Industrial Fire" insurance policy offered by JSIC "OZK-Insurance" JSC.
The article traces the dynamics of gross written premium income realised by the insurance company and the insurance payments made by it for the period 2017-2021. Thanks to the calculated loss ratio, the status of the "Industrial Fire" insurance policy, offered by JSIC "OZK-Insurance" JSC was revealed.
On the basis of the conducted research, it was concluded that JSIC "OZK-Insurance" JSC has good opportunities for the development of "Industrial Fire" insurance.
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Mina Kirova
The Operational Controlling System in the Insurance Company – Structure and Characteristics
Summary:
There are various understandings on the essence of controlling in literature.They could be generalized into two purposeful sides of the concept, namely: as a qualitatively new philosophy and as a management instrument of the business unit. In this expose these views are unified in one, in which the result-oriented management of the insurance company appears a way of thinking of the management team and at the same time the controlling assists the management by the necessary informationanalytical and methodical apparatus. Ultimately, the main idea of controlling is to ensure the accomplishment of insurer’s objectives by coordinating the realization of traditional managerial functions and providing, in due time, the information relevant for the managerial decision making.
The structure and organization of the controlling system is subordinate to the general theory of the system. Its development within the insurance company is accomplished on the basis of two supporting points: the first one is the personification and subjectivization of the links and interactions between the comprising elements of the system; the second is the technology of the implementation of the controlling presented as a process of consecutive actions of targeting, planning, reporting of expenses and operating results, the control and the information backup of the management team.
The characteristics of the operational controlling system are being displayed mainly upon the differentiation of the strategic from the operational controlling and are, at the same time, pre-determined by the necessity to reflect the specifics of the insurance activity. The latter determines the inclusion of the actuary’s technique and the insurance-technical analysis as elements of the controllership system, and the actuary-in-chief himself as a subject of controlling.
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Andrey Zahariev, Stefan Stanimirov, Nikolay Todorov Zdravkov
Managerial Financial Model of an Insurance Broker in Bulgaria - Methodological and Applied Aspects
Summary:
The object of research are the insurance brokers in Bulgaria, and its subject is the methodological framework for building a management financial model of an insurance broker in Bulgaria. The leading thesis in the present study is based on the statement that the optimal financial management of a brokerage company in the insurance sector in Bulgaria requires the construction of a complex model based on the control of the financial value of the company, which allows to compare the attractiveness of various business lines, through which to develop those of them, bringing the greatest increase in the value of the company. The purpose of the development is to justify a methodological framework for building a comprehensive financial management model based on the control of the financial value of the company, which allows by forecasting the benefits and costs to compare the attractiveness of different business lines for development and expansion. The focus is on gross premium income from corporate insurance and retail brokerage. As a result of the research, forecast values for the period 2019-2023 are generated, first the exogenous variables are predicted, and on their basis - the main target variables. The constructed model has an extremely high descriptive ability - as for the historical period the two curves - with real reporting data and the modelled one - practically coincide. On this basis, the forecast part can be considered relevant for the purposes of the management financial model. Similar results are achieved in the modelling and forecasting of retail premiums, which is the basis of the insurance broker's profit.