G22 - Insurance; Insurance Companies; Actuarial StudiesReturn

This paper aims to evaluate the profitability and expense ratio of the insurance business conducted by commercial insurance companies operating in the Czech insurance market from 2004 to 2019. The evaluation shall apply computations such as the return on assets (ROA), the ratio of underwriting profit to assets (UPA), and the expense ratio indicator (ER). Calculations shall be performed for non-life insurance. The value of the UPA indicator was stable during the whole period. By contrast, the ROA indicator fluctuated from 2004 to 2011. The ROA indicator stabilized between 2012 and 2017 and then between 2017 and 2019 ROA grew significantly. The value of both indicators (ROA, UPA) decreased from 2015 to 2017 and increased from 2017-2018. The operating expense ratio of insurance operations (ER) showed a growth tendency. When the average values of the selected indicators were compared to the Czech market, it was determined that the insurance companies Allianz, Česká pojišťovna ZDRAVÍ and PNP Paribas Cardif had achieved the best result and were the most efficient.

Financial intermediaries allow to search risks for insurance and thus they help to achieve greater expansion of trade for insurance companies and they help to choose high quality insurance to the ultimate clients based on their specific requests. In the current financial theory, but also in financial practice, it is paid attention to financial intermediation and financial consultancy. Aim of this paper is a theoretical definition of economic categories in these areas in a broader context, which are essential for the insurance practice. At the same time it is performed analysis of legal rules governing financial intermediation and financial consultancy in the Czech and Slovak Republics, their fundamental differences and specific advantages and disadvantages in their application.

This article deals with the investment activity of insurance companies in the period of economic crisis. The principal aim of this article is to evaluate the impact of economic crises on investment activity of commercial insurance companies. Firstly, we briefly identify the term - investment activity of insurance companies. After that, we evaluate the development of investment activity of commercial insurance companies on Slovak, Czech, Austrian and Polish insurance market in the period of 2008 - 2011. Within the investment activity of commercial insurance companies we focus on the volume of investments and its structure. On the basis of discovered data, we state the possible impacts of economic crisis on the investment activity of commercial insurance companies.

This article deals with selected issues of the insurance intermediary business on the Czech insurance market. It focuses on some of the practical aspects, principles and rules of insurance brokers and insurance agents with regard to the presumed expectations of customers. Due to forthcoming legislative changes in this course of study this article is trying to answer selected questions related to the cancellation of the above-mentioned status of insurance intermediaries and creating a new category labeled independent broker. This article deals with the issue not only from the perspective of insurance intermediaries, but also from the perspective of the supervisory body and gives a warning to potential clients of these services.

Insurance economics were founded at the beginning of the sixties of the twentieth century. Due to that, it has become one of the younger elements of microeconomic theory. As its seminal papers are often presented as a part of the finance theory or microeconomics, our paper aims to remedy this shortcoming. It brings results of the analysis of selected papers that laid the foundations and promoted the development of insurance economics. Although the analyzed articles did not focus primarily on the area of insurance, they prepared the basis for further research in this area. The key themes of the insurance economics have become the allocation of risk, game theory, the existence of economies of scale in insurance information processing, demand for insurance, information asymmetry, self insurance, self protection as well as principal-agent model.

The main objective of the new regulation of the insurance industry is the protection of policyholders, insured persons and beneficiaries, connected with the financial stability of the insurers supervised. The stabilizing role of the insurance industry will be supported by higher demands on high-quality and functional risk management system and on the robust system of internal control in commercial insurance companies. These demands follow from the implementation of a new regulation Solvency II. This paper focuses on the analysis of specific goals of the realization and structure of the Solvency II regulation within its second pillar. A partial aim is to compare the former and the future approach of insurance regulations, i. e. Solvency I and Solvency II, under the conditions of the integrated insurance market of the European Union.In the paper, partial results achieved in the frame of research program MSM 6215648904/02 are solved, in relation to goals and methodology of the given research aim.

Risk can be understood as a lack of knowledge about future situations. In the case that is studied in this paper, it concerns the future price of a natural gas. This risk can be hedged by a broad family of strategies. In the paper we study and compare only the most standard strategies on the basis of a simulation study. Within the comparison we use the basic characteristics of probability distribution of the hedging effect and the quantiles of both tails. According to theoretical expectations, the risk is minimal for a covered position, whilst the barrier option means both the highest mean value and risk in sense of the standard deviation.

Insurance is one of the fields of business, which are significantly signing of monetary policy to stabilize the country. The essence lies primarily in the fact that a substantial part of the funds accumulated in the field of business is investment in fixed assets, including government securities, which stabilises the currency movement within the economy. In addition, this fact supports the reinvestment of temporarily free resources, allowing the development of the economy. Contribution aims on the basis of this analysis to assess the fundamental factors affecting the insurance industry in the context of the current crisis development. The comparison and analysis focused on the impact of economic development on the stability of the insurance market, the impact of the financial markets, distribution channels and their role in the availability of insurance products and also the influence of claims in the Czech Republic and in the European Union countries.

This article is focused on evaluation of financial situation of Česká podnikatelská pojišťovna, a. s., Vienna Insurance Group, which represents the eighth biggest insurance company in Czech Republic in the last years. The evaluation was realized through the chosen financial indicators: insurance written premium, trading income, analysis reporting income and loss, liquidity, rentability and investment activity analysis. We compared reached results of ratio indicators of Česká podnikatelská pojišťovna, a. s. from 2003 to 2010 with results of all Czech insurance industry in 2010 and concurrently with recommended attributes from rating agency Standard & Poor's.

Since 2004, the Environmental Liability Directive No. 2004/35/EC is the basic document which has governed liability for damage to the natural environment in the European Union, as amended by subsequent regulation No. 2006/21/EC. The main purpose of the legislation was to ensure that the polluter responsible for the damage pays all costs for rectifying its consequences. If it concerns damage to the natural environment, the operator must undertake measures for rehabilitation, replacement and regeneration of damaged natural resources. Primary replacement, which returns damaged natural resources to their original state, may be differentiated from complementary replacement as compensation in the case in which primary replacement has not provided adequate reparation, and finally compensatory replacement - compensation for temporary loss of natural conditions.
This paper is focused on an analysis of specific presumptions about the insurability of risk as concerns environmental insurance. Scientific paper aims at an analysis of the environmental insurance as a possible mean for eliminating risks due to liability for environmental impairment caused by the actions of an operator whose activities potentially threaten the natural environment and may cause biodiversity damage. There is the EU approach described, and the current demand required by the Directive is explored with respect to its impact on the Czech conditions. Risks are assessed with regard to risk insurability criteria for potential damage to the natural environment. The importance of risk management is stressed in the sophisticated form known as Enterprise Risk Management. Risk management is becoming increasingly important with consistent quantification of obvious, hidden and potential risks.
The paper was written as part of research project MSM 6215648904, carried out by the Faculty of Business and Economics, under the name "The Czech Republic in the processes of integration and globalization, and the development of the agriculture and service sector in the new conditions of the integrated European market", following the goals and methodology of the research project.