{"id":2061,"date":"2024-05-23T18:26:37","date_gmt":"2024-05-23T18:26:37","guid":{"rendered":"https:\/\/eoninvestment.com\/?p=2061"},"modified":"2025-01-29T11:50:08","modified_gmt":"2025-01-29T07:50:08","slug":"insurance-business-model","status":"publish","type":"post","link":"https:\/\/eoninvestment.com\/ka\/2024\/05\/23\/insurance-business-model\/","title":{"rendered":"Insurance Business Model"},"content":{"rendered":"\n

Why insurance is not profitable in the direct sense and the source of profit is an investment activity?<\/p>\n\n\n\n

There is such a term – Combined Ratio – which reflects the share of losses, bonuses and insurance dividends issued in insurance premiums\u2026 https:\/\/www.statista.com\/statistics\/502232\/combined-ratio-in-p-c-insurance-industry-usa\/<\/a><\/p>\n\n\n\n

In my opinion, the fact is that in the US this figure in the property insurance is very close to 100%and often exceeds 100%\u2026<\/p>\n\n\n\n

What is going on in Georgea regarding that? With 2022-year-olds, 96.4%came out: https:\/\/www.insurance.gov.ge\/ka\/Statistics<\/a><\/p>\n\n\n\n

Why is this moment important?<\/p>\n\n\n\n

When global crises occur and the situation is not normal, insurance sector often fails to take meet responsibility.<\/p>\n\n\n\n

Model Problem: There are, two main pressures on business model:<\/p>\n\n\n\n

    \n
  1. Adverse Selection Problem, – often insurance buy people who have a problem.<\/li>\n\n\n\n
  2. Moral Hazard – People change decisions after insurance. They take more risks.<\/li>\n<\/ol>\n\n\n\n

    But how adequate is the business model in general?
    You pay \u22484% of the value of a car annually, and though the insurance company can’t make a profit.<\/p>\n\n\n\n

    insight source:<\/p>\n\n\n\n

    Financial Markets and Institutions – by A. Saunders, M. Cornett & O. Erhemjamts<\/p>\n\n\n\n

    ——————————————————————————————————————-<\/p>\n\n\n\n

    \u10e1\u10d0\u10d3\u10d0\u10d6\u10e6\u10d5\u10d4\u10d5\u10dd \u10db\u10dd\u10d3\u10d4\u10da\u10d8\u10e1 \u10ee\u10d0\u10e0\u10d5\u10d4\u10d6\u10d4\u10d1\u10d8<\/h2>\n\n\n\n

    \u10e0\u10d0\u10e2\u10dd\u10db\u10d0\u10d0, \u10e0\u10dd\u10db \u10e1\u10d0\u10d3\u10d0\u10d6\u10e6\u10d5\u10d4\u10d5\u10dd \u10e1\u10d0\u10e5\u10db\u10d8\u10d0\u10dc\u10dd\u10d1\u10d0 \u10de\u10d8\u10e0\u10d3\u10d0\u10de\u10d8\u10e0\u10d8 \u10d2\u10d0\u10d2\u10d4\u10d1\u10d8\u10d7 \u10db\u10dd\u10db\u10d2\u10d4\u10d1\u10d8\u10d0\u10dc\u10d8 \u10d0\u10e0 \u10d0\u10e0\u10d8\u10e1 \u10d3\u10d0 \u10db\u10dd\u10d2\u10d4\u10d1\u10d8\u10e1 \u10ec\u10e7\u10d0\u10e0\u10dd\u10e1 \u10ec\u10d0\u10e0\u10db\u10dd\u10d0\u10d3\u10d2\u10d4\u10dc\u10e1 \u10e1\u10d0\u10d8\u10dc\u10d5\u10d4\u10e1\u10e2\u10d8\u10ea\u10d8\u10dd \u10e1\u10d0\u10e5\u10db\u10d8\u10d0\u10dc\u10dd\u10d1\u10d0.

    \u10d0\u10db \u10d8\u10dc\u10d3\u10e3\u10e1\u10e2\u10e0\u10d8\u10d0\u10e8\u10d8 \u10d0\u10e0\u10e1\u10d4\u10d1\u10dd\u10d1\u10e1 \u10d0\u10e1\u10d4\u10d7\u10d8 \u10e2\u10d4\u10e0\u10db\u10d8\u10dc\u10d8 – Combined Ratio – \u10e0\u10d0\u10ea \u10d0\u10e1\u10d0\u10ee\u10d0\u10d5\u10e1 \u10e1\u10d0\u10d3\u10e6\u10d5\u10d4\u10d5\u10dd \u10d6\u10d0\u10e0\u10d0\u10da\u10d4\u10d1\u10d8\u10e1, \u10d1\u10dd\u10dc\u10e3\u10e1\u10d4\u10d1\u10d8\u10e1 \u10d3\u10d0 \u10d2\u10d0\u10ea\u10d4\u10db\u10e3\u10da\u10d8 \u10e1\u10d0\u10d3\u10d0\u10d6\u10e6\u10d5\u10d4\u10d5\u10dd \u10d3\u10d8\u10d5\u10d8\u10d3\u10d4\u10dc\u10d3\u10d4\u10d1\u10d8\u10e1 (\u10d2\u10d0\u10e1\u10d0\u10d5\u10da\u10d4\u10d1\u10d8\u10e1) \u10ec\u10d8\u10da\u10e1 \u10e1\u10d0\u10d3\u10d0\u10d6\u10e6\u10d5\u10d4\u10d5\u10dd \u10de\u10e0\u10d4\u10db\u10d8\u10d0\u10e8\u10d8 (\u10e8\u10d4\u10db\u10dd\u10e1\u10d0\u10d5\u10da\u10d4\u10d1\u10e8\u10d8)…     https:\/\/www.statista.com\/statistics\/502232\/combined-ratio-in-p-c-insurance-industry-usa\/<\/a>

    \u10e9\u10d4\u10db\u10d8 \u10d0\u10d6\u10e0\u10d8\u10d7 \u10e1\u10d0\u10d8\u10dc\u10e2\u10d4\u10e0\u10d4\u10e1\u10dd\u10d0 \u10e4\u10d0\u10e5\u10e2\u10d8, \u10e0\u10dd\u10db \u10d0\u10e8\u10e8-\u10e8\u10d8 \u10d4\u10e1 \u10db\u10d0\u10e9\u10d5\u10d4\u10dc\u10d4\u10d1\u10d4\u10da\u10d8 \u10e5\u10dd\u10dc\u10d4\u10d1\u10d8\u10e1 \u10d3\u10d0\u10d6\u10e6\u10d5\u10d4\u10d5\u10d8\u10e1 \u10dc\u10d0\u10ec\u10d8\u10da\u10e8\u10d8 \u10d0\u10e0\u10d8\u10e1 100%-\u10d7\u10d0\u10dc \u10eb\u10d0\u10da\u10d8\u10d0\u10dc \u10d0\u10ee\u10da\u10dd\u10e1 \u10d3\u10d0 \u10ee\u10e8\u10d8\u10e0\u10d0\u10d3 \u10d0\u10ed\u10d0\u10e0\u10d1\u10d4\u10d1\u10e1 \u10d9\u10d8\u10d3\u10d4\u10d5\u10d0\u10ea 100%-\u10e1…

    \u10e9\u10d5\u10d4\u10dc\u10d7\u10d0\u10dc \u10d4\u10e1 \u10e0\u10dd\u10d2\u10dd\u10e0 \u10d0\u10e0\u10d8\u10e1?

    2022-\u10ec\u10da\u10d8\u10e1 \u10db\u10d0\u10e9\u10d5\u10d4\u10dc\u10d4\u10d1\u10da\u10d4\u10d1\u10d8\u10d7, 96.4%-\u10d8 \u10d2\u10d0\u10db\u10dd\u10d5\u10d8\u10d3\u10d0…     https:\/\/www.insurance.gov.ge\/ka\/Statistics<\/a>

    \u10e0\u10d0\u10e2\u10dd\u10db \u10d0\u10e0\u10d8\u10e1 \u10d4\u10e1 \u10db\u10dd\u10db\u10d4\u10dc\u10e2\u10d8 \u10db\u10dc\u10d8\u10e8\u10d5\u10dc\u10d4\u10da\u10dd\u10d5\u10d0\u10dc\u10d8?

    \u10e0\u10dd\u10ea\u10d0 \u10db\u10eb\u10d8\u10db\u10d4 \u10d9\u10e0\u10d8\u10d6\u10d8\u10e1\u10d4\u10d1\u10d8 \u10ee\u10d3\u10d4\u10d1\u10d0 \u10d3\u10d0 \u10dc\u10dd\u10e0\u10db\u10d0\u10da\u10e3\u10e0\u10d8 \u10d5\u10d8\u10d7\u10d0\u10e0\u10d4\u10d1\u10d0 \u10d0\u10e0 \u10d0\u10e0\u10d8\u10e1, \u10e1\u10d0\u10d3\u10d0\u10d6\u10e6\u10d5\u10d4\u10d5\u10dd\u10d4\u10d1\u10d8 \u10ee\u10e8\u10d8\u10e0\u10d0\u10d3 \u10de\u10d0\u10e1\u10e3\u10ee\u10d8\u10e1\u10db\u10d2\u10d4\u10d1\u10da\u10dd\u10d1\u10d0\u10e1 \u10d5\u10d4\u10e0 \u10d0\u10e1\u10e0\u10e3\u10da\u10d4\u10d1\u10d4\u10dc… (\u10db\u10d0\u10d2\u10d0\u10da\u10d8\u10d7\u10d0\u10d3, \u10e4\u10d4\u10d3\u10d4\u10e0\u10d0\u10da\u10e3\u10e0 \u10db\u10d7\u10d0\u10d5\u10e0\u10dd\u10d1\u10d0\u10e1 \u10db\u10dd\u10e3\u10d8\u10ec\u10d8\u10d0 \u10db\u10d8\u10da\u10d8\u10d0\u10e0\u10d3\u10dd\u10d1\u10d8\u10d7 \u10d8\u10dc\u10d4\u10e5\u10ea\u10d8\u10d0 AIG-\u10e8\u10d8 \u10e0\u10dd\u10db \u10d0\u10e0 \u10d2\u10d0\u10d9\u10dd\u10e2\u10e0\u10d4\u10d1\u10e3\u10da\u10d8\u10e7\u10dd, AIG \u10d8\u10e7\u10dd “\u10db\u10d0\u10e6\u10d0\u10da\u10e0\u10d8\u10e1\u10d9\u10d8\u10d0\u10dc\u10d8” \u10d8\u10de\u10dd\u10d7\u10d4\u10d9\u10e3\u10e0\u10d8 \u10e1\u10d4\u10e1\u10ee\u10d4\u10d1\u10d8\u10e1 \u10e3\u10db\u10e1\u10ee\u10d5\u10d8\u10da\u10d4\u10e1\u10d8 \u10d3\u10d0\u10db\u10d6\u10e6\u10d5\u10d4\u10d5\u10d8 2007-\u10e8\u10d8).

    \u10db\u10dd\u10d3\u10d4\u10da\u10d8\u10e1 \u10de\u10e0\u10dd\u10d1\u10da\u10d4\u10db\u10d0:

    \u10e0\u10dd\u10d2\u10dd\u10e0\u10ea \u10d0\u10db\u10dd\u10d1\u10d4\u10dc, \u10dd\u10e0\u10d8 \u10eb\u10d8\u10e0\u10d8\u10d7\u10d0\u10d3\u10d8 \u10ec\u10dc\u10d4\u10ee\u10d8 \u10d0\u10e5\u10d5\u10e1 \u10d1\u10d8\u10d6\u10dc\u10d4\u10e1 \u10db\u10dd\u10d3\u10d4\u10da\u10e1:

    1. \u10e1\u10d4\u10d2\u10db\u10d4\u10dc\u10e2\u10d8\u10e1 \u10e8\u10d4\u10e0\u10e9\u10d4\u10d5\u10d8\u10e1 \u10de\u10e0\u10dd\u10d1\u10da\u10d4\u10db\u10d0 (adverse selection problem), – \u10ee\u10e8\u10d8\u10e0\u10d0\u10d3 \u10d3\u10d0\u10d6\u10e6\u10d5\u10d4\u10d5\u10d0\u10e1 \u10e7\u10d8\u10d3\u10e3\u10da\u10dd\u10d1\u10d4\u10dc \u10d8\u10e1\u10d8\u10dc\u10d8 \u10d5\u10d8\u10e1\u10d0\u10ea \u10de\u10e0\u10dd\u10d1\u10da\u10d4\u10db\u10d0 \u10e3\u10d3\u10d2\u10d0\u10d7;

    2. \u10db\u10dd\u10e0\u10d0\u10da\u10e3\u10e0\u10d8 \u10e1\u10d0\u10e4\u10e0\u10d7\u10ee\u10d4 (moral hazard) – \u10d3\u10d0\u10d6\u10e6\u10d5\u10d4\u10e3\u10da\u10d4\u10d1\u10d8 \u10d8\u10ea\u10d5\u10da\u10d8\u10d0\u10dc \u10d2\u10d0\u10d3\u10d0\u10ec\u10e7\u10d5\u10d4\u10e2\u10d8\u10da\u10d4\u10d1\u10d4\u10d1\u10e1 \u10d3\u10d0\u10d6\u10e6\u10d5\u10d4\u10d5\u10d8\u10e1 \u10e8\u10d4\u10db\u10d3\u10d4\u10d2. \u10db\u10d8\u10d3\u10d8\u10d0\u10dc \u10db\u10d4\u10e2 \u10e0\u10d8\u10e1\u10d9\u10d4\u10d1\u10d6\u10d4.

    \u10db\u10d0\u10d2\u10e0\u10d0\u10db, \u10e0\u10d0\u10db\u10d3\u10d4\u10dc\u10d0\u10d3 \u10d0\u10d3\u10d4\u10d9\u10d5\u10d0\u10e2\u10e3\u10e0\u10d8\u10d0 \u10d1\u10d8\u10d6\u10dc\u10d4\u10e1 \u10db\u10dd\u10d3\u10d4\u10da\u10d8 \u10d6\u10dd\u10d2\u10d0\u10d3\u10d0\u10d3?
    \u10d0\u10d5\u10e2\u10dd\u10db\u10dd\u10d1\u10d8\u10da\u10d8\u10e1 \u10d3\u10d0\u10d6\u10e6\u10d5\u10d4\u10d5\u10d0\u10e8\u10d8 \u10d8\u10ee\u10d3\u10d8 \u10ec\u10da\u10d8\u10e3\u10e0 \u22484%-\u10e1 \u10d3\u10d0 \u10d0\u10db\u10d8\u10d7 \u10e1\u10d0\u10d3\u10d0\u10d6\u10e6\u10d5\u10d4\u10d5\u10dd \u10d9\u10dd\u10db\u10de\u10d0\u10dc\u10d8\u10d0 \u10db\u10dd\u10d2\u10d4\u10d1\u10d0\u10e1 \u10d5\u10d4\u10e0 \u10d0\u10d9\u10d4\u10d7\u10d4\u10d1\u10e1?<\/p>\n\n\n\n

    \u10d8\u10d3\u10d4\u10d8\u10e1 \u10ec\u10e7\u10d0\u10e0\u10dd:<\/p>\n\n\n\n

    Financial Markets and Institutions – by A. Saunders, M. Cornett & O. Erhemjamts<\/p>\n","protected":false},"excerpt":{"rendered":"

    Why insurance is not profitable in the direct sense and the source of profit is an investment activity? There is such a term – Combined Ratio – which reflects the share of losses, bonuses and insurance dividends issued in insurance premiums\u2026 https:\/\/www.statista.com\/statistics\/502232\/combined-ratio-in-p-c-insurance-industry-usa\/<\/a> In my opinion, the fact is that in the US this figure in […]<\/p>\n","protected":false},"author":12998525,"featured_media":2082,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[774675918,503653],"tags":[4269,6635,28559,13843,8589],"class_list":["post-2061","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-markets-and-institutions-by-a-saunders-m-cornett-o-erhemjamts","category-market-efficiency","tag-finance","tag-investing","tag-investment","tag-stock-market","tag-stocks"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/eoninvestment.com\/wp-content\/uploads\/2024\/05\/pexels-n-voitkevich-6120216.jpg?fit=6240%2C4160&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pQZ85-xf","_links":{"self":[{"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/posts\/2061","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/users\/12998525"}],"replies":[{"embeddable":true,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/comments?post=2061"}],"version-history":[{"count":6,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/posts\/2061\/revisions"}],"predecessor-version":[{"id":5831,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/posts\/2061\/revisions\/5831"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/media\/2082"}],"wp:attachment":[{"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/media?parent=2061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/categories?post=2061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/tags?post=2061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}