We investigate the vertical differentiation model in the insurance market taking into account fixed costs (the costs of quality improvement) of different structure. The subgame perfect equilibrium in a two-stage game is constructed for the case of compulsory insurance when firms use Bertrand-Nash or Stakelberg equilibria at the stage of price competition. For the case of optional insurance we explore and compare the firms optimal behavior in monopoly and duopoly settings.
In the 70s of the twentieth century, several directives were introduced in the European Union under the collective name Solvency-I, which spelled out the requirements for the solvency of insurance organizations and their capital. Such rules were supposed to force insurers to minimize the likelihood of bankruptcy by maintaining the necessary level of their stability. Due to significant changes in the economies of European countries, including in the insurance market, there is a need to make modifications to the existing regulations. A new Solvency-II Directive was adopted. One of the main differences between Solvency-II and Solvency-I is the use of a risk-based approach (ROP) when setting requirements for the solvency of the insurer. Russia signed the WTO accession agreement in 2012. Therefore, all organizations must comply with key parameters, not only Russian, but also European legislation. Initially, the requirements of the Russian legislation corresponded to the Solvency-I Directive. However, now Russian insurance companies need to switch to the requirements of the Solvency-II Directive. An important point for the companies ' activities is the differences between these two documents, so the purpose of the study is a comparative analysis of the requirements of Solvency-I and Solvency-II, taking into account certain specific characteristics of economic activity in Russia. Our work is devoted to a brief overview of the creation and development of the Solvency-I and Solvency-II Directives, the advantages and disadvantages of the Solvency-II Directive currently operating in the EU, as well as a brief description of its structure and main requirements. The study will also present the specifics of the implementation of the technical requirements imposed by the Directive. At the same time, the difficulties of their application to the Russian reality will be taken into account.
This article is devoted to the analysis of the existence of target capital structure of insurance companies and empirical testing of wide known capital structure theories for Russian insurance companies. Trade-of and “pecking order” theories were consider and the model that reflects the impact on the capital structure indicators various characteristics of firms was build. Traditional for insurance markets coefficients: net premium / capital ratio and liabilities / active ratio were consider as capital structure indicators. It was showed that trade-of theory is more adequate for Russian insurance market. It was discovered the existence of target capital structure. Such indicators as firm size, the share of premiums transferred to reinsurance, return on assets, return on capital has significant impact on the capital structure. The opportunity to grow, which was estimated as growth in premiums, and the breadth of the range didn’t has significant impact.
On December 25,2020, the second national Conference of researchers of economics, Business and society was held at the Higher School of Economics–Saint Petersburg. This event was associated with the discussion of academic and applied issues on the results and challenges that 2020 brought in various fields of science and practice: finance, economics, mathematics,education. The online conference was attended by researchers from universities in different Russian cities. Postgraduates and students from different universities, as well as practitioners from different fields of activity, contributed as co-authors. It is important that this event brought together all socially significant disciplines and became a platform for knowledge exchange, summing up the results of the year and building plans for future research. This collection contains abstracts of papers selected for participation in the conference program; selected articles are also included.
The article analyzes the methodological bases of an estimation the value of companies in the financial sector. The authors propose the science-based methodology for assessing the value of the insurance business corresponding to the specifics of the insurance industry and especially the development of the insurance market of the Russian Federation. Research results can serve as a basis for the valuation of insurance companies, as well as to manage their cost.
The article discusses the concentration of the insurance market in Russia, its influence on the state of insurance in the country and regions. The indicators of the concentration of the insurance market, including by types of insurance, are analyzed, the factors of their changes in the period of 2014–2018 are specified. Predictive estimates of the concentration of the insurance business on the basis of identified trends are given.