OAR@UM Collection:
https://www.um.edu.mt/library/oar/handle/123456789/5419
2024-03-28T21:38:04ZPension schemes in Malta : a study of the need for reform
https://www.um.edu.mt/library/oar/handle/123456789/5556
Title: Pension schemes in Malta : a study of the need for reform
Abstract: Pension Scheme Reforms are of utmost importance for our country and certainly such reforms are a must in the near future. Currently in Malta we only have National Insurance were current employees pay for today’s pensioners. This system is mainly known as the Pay As You Go System. There are ongoing consultations and studies regarding voluntary third pillar schemes and tax incentives for employees who opt to put aside and invest until retirement age. (Budget Document 2014)
This research includes an analysis and proposed recommendations for reforms in the pensions sector that can be feasible for the Maltese working population. The standard three-pillar pension system, used in most western countries will be discussed in the dissertation. Presently, Malta adopts the first pillar pension scheme and EU is putting pressure on Malta to implement reforms regarding pension schemes. Malta remains amongst one of the few EU countries not to have a proper pension scheme.
A fully blown reform has been put on hold for a number of years, predominantly as the introduction of occupational and voluntary pension schemes could negatively impact the purchasing power of workers and various aspects of our small and vulnerable economy. For instance, the average take home pay in our country is quite low when compared to developed countries like Germany, France, Italy, United Kingdom, Central Europe and the Scandinavian countries. (Eurostat 2014- Average wages/salaries in the EU). The main objective of pension schemes is to provide a lump sum and/or a stream of income at retirement. Whereas State Pensions offer retirees a minimum income to meet day-to-day purchases and necessities, the amount is barely adequate to retain the same standard of living pre-retirement. It is private pension schemes that offer a solution and could alleviate retirees’ financial strain through the provision of a supplementary income. In addition, financial institutions offering private pension products usually bundle life assurance and investment. Whilst the policy owner would be saving up, there would be peace of mind through life cover that could alleviate the beneficiaries’/heirs’ inheritance tax dues.
Description: B.COM.(HONS)INSURANCE2015-01-01T00:00:00ZHow the motor insurance market adapts to changes in customers' needs
https://www.um.edu.mt/library/oar/handle/123456789/5553
Title: How the motor insurance market adapts to changes in customers' needs
Abstract: The primary objective of compulsory third party liability motor insurance is that of protecting those who suffer loss, injury or damage in accidents involving motor vehicles. In Malta, motor insurance is the most commonly underwritten type of insurance and currently. Three levels of cover are generally offered; Third Party Only, Third Party Fire and Theft and Comprehensive, which all cover third party liability.
Young drivers are considered as a particularly bad risk for motor underwriters, and when looking at statistics, one can see that they are involved in 43% of road traffic accidents in Malta. Many insurance companies, therefore, impose a loading on their premiums, limit cover to Third Party Only basis, increase the policy excesses or else refuse to insure young drivers altogether.
Motor insurers continuously try to cater for the needs of different segments of the motor insurance market. Some have recently introduced policy variants such as Guaranteed Asset Protection, Boosh and Motormax, which are Pay-As-You-Go (PAYG); an insurance policy that charges the customer depending on the distance travelled and Pay-How You-Drive (PHYD) insurance; this, charges the customer depending on the driving behaviour. Both make use of telematics technology.
Both Boosh and Motormax are targeted specifically to younger drivers. However, this is not the case abroad as telematics-based insurance is also popular with older drivers. By monitoring the driving behaviour of their policyholders and imposing penalties for over speeding, sudden braking and late night driving, insurers would thus be reducing the frequency and severity of claims. These types of policies have only been just introduced in Malta and one cannot measure their success accurately until some time has passed. GAP Insurance is also very popular abroad, however in Malta it is not yet the case. It provides cover over and above the market value of the car when it is written off or stolen, so the policyholder would be able to purchase a similar car.
Motor insurance premiums and excesses for young drivers tend to be on the high side as the claims they generate, are more frequent and more severe. PAYG and PHYD present one solution to tackle the problem and thus help keeping insurance premiums low. Furthermore, many face the problem of inadequate compensation when their vehicle is declared as a total loss as they underestimate the effect of depreciation; this problem is effectively tackled by GAP Insurance. This dissertation will analyse the introduction of the products in Malta, the perception of the public and how competing insurance companies have reacted to these products. It will also assess the future prospects of these products in Malta. As part of the research, questionnaires will be handed out to current, potential and non-eligible customers. Interviews will be carried out to the insurers involved so as to go into more detail and to increase the accuracy of the research.
This dissertation will thus analyse the new trends in the motor insurance market and the associated benefits and drawbacks. Moreover, it will explore the possibility of introducing such products to other segments of the market. Additionally, the responses of other insurance companies will be analysed, and, in conclusion, this thesis will try and predict whether these products will prove to be popular and a success in the Maltese market.
Description: B.COM.(HONS)INSURANCE2015-01-01T00:00:00ZAn analysis of protected cell companies under Solvency II
https://www.um.edu.mt/library/oar/handle/123456789/5551
Title: An analysis of protected cell companies under Solvency II
Abstract: Purpose This study aims to analyse how Insurance Protected Cell Companies
are to be influenced by the new Solvency II EU legislation, which is to be
implemented on the 1st of January 2016.
Design To arrive at the final conclusion the study was split into five sections:
Chapter 1: An introduction and explanation of PCCs’ and Solvency II; Chapter 2: An analysis of the study through previous literature;
Chapter 3: The research methods and methodology applied; Chapter 4: The presentation of the findings; and, Chapter 5: The conclusion together with recommendations.
Findings Solvency II will bring about positive improvements to PCCs and the
third parties investing. Yet, challenges are dealt with too. It is true that PCCs benefit
from economies of scale when compared to stand alone insurers, but such companies
are still dealing with the issue of a rise in costs due to the implementation of
Solvency II. Moreover, a number of PCCs are being challenged by the 20% capping
on the own funds. Conclusion The findings led the researcher to one conclusion; overall PCCs under
Solvency II will benefit from a number of advantages. Yet, like any other thing,
challenges will be present too. Recommendations were also provided by the
researcher on areas which need improvement or even further studies.
Description: B.COM.(HONS)INSURANCE2015-01-01T00:00:00ZAre athletes in Malta protected and to what extent? : a study of the support available through sports insurance cover
https://www.um.edu.mt/library/oar/handle/123456789/5550
Title: Are athletes in Malta protected and to what extent? : a study of the support available through sports insurance cover
Abstract: “As salaries in professional sports have soared over the past few decades, so has the price tag associated with the risks inherent in such strenuous physical activities. Athletes in sports like golf and tennis often buy their own insurance, though those with recurring conditions have trouble getting coverage. Sports teams that offer guaranteed contracts face huge losses if stars are injured, even only temporarily. As a result, the economics of the business are now shaped by insurance markets just as they are by TV contracts or ticket sales” (The Economist, 2013).
The study proposes to address whether athletes and their respective coaches are protected both locally and when abroad; through sports insurance cover and to what extent. Furthermore, by conducting primary and secondary research, it aims to evaluate the burden of the local insurance companies taking on the risks of athletes undergoing injuries.
Sports insurance is a relatively new concept, where an insurance policy is issued for an athlete; covering injury costs, travelling costs and any sports accidents that may occur. Some policies may also pay out for liability protection and personal benefits of sports teams as well as coaches and equipment. From this aspect, sports insurance is very established worldwide.
Training a sport is beyond the sole act of using your abilities to reach your goal or pushing your body through fatigue. Getting involved in a sport effects athletes physically and in a social manner. A sports injury occurs during the exercise resulting from accidents or using improper equipment, poor training practices, lack of conditioning or insufficient warm-up and stretching. Overseas travel is an essential part of being an athlete - it's not quite a business trip yet the right travel insurance cover is critically important. Professional athletes also tend to work alongside a dedicated team of professionals in their hunt for glory so why not be covered under a sports insurance policy and have peace of mind?
“There are numerous economic aspects of sports including direct expenditures or income where money flows can be observed. Indirect economic effects such as societal costs cannot be assessed by observing money flows but can only be estimated with the help of theoretical constructs”. Studies show that “team ball sports account for about 40% of all hospital treated sports injuries” (FootBalance, 2012) in Europe with the highest sport ranked being football. Pro-cyclists participating in events like the Tour de France are amongst the hardest of all athletes to insure, but that doesn’t deter Lloyd’s specialist underwriters (Lloyd’s.com, 2014). Other events like the Boston Marathon bombings have also forced the insurance markets to face rise in costs.
Through interviews to the companies’ personnel, information was gathered to understand how viable it is to cover athletes in Malta and to what extent. Furthermore, questionnaires were distributed to various athletes with the intention to know their needs with respect to insurance.
Description: B.COM.(HONS)INSURANCE2015-01-01T00:00:00Z