جستجوی مقالات مرتبط با کلیدواژه "بیمه" در نشریات گروه "اقتصاد"

Today, we are witnessing the increasing growth of financial technologies in the insurance industry. Undoubtedly, smart contracts can be considered one of the most important financial technologies. A limited number of researchers in the insurance industry have investigated the effect of the introduction of smart contracts on the performance of this industry; But what should be emphasized in the meantime is that when faced with any new and unknown phenomenon such as the Internet in previous years, the necessities, requirements and effects of using that technology should be fully investigated. The present study tries to evaluate the various aspects of the implementation of smart contracts in the insurance industry, to calculate its effects on the insurance processes in the insurance industry, and to determine the best type of design and use of this contract in the insurance industry, in order to accelerate and facilitate the insurance processes. introduce the benefit of the insurer and the insured; In the present research, firstly, with a descriptive-analytical approach based on theoretical and library studies, through theoretical study and referring to specialized reports in this field, various aspects of the implementation of smart contracts in the insurance industry have been analyzed. In the continuation of the research, using the SWOT matrix, the strengths, weaknesses, opportunities and threats of the impact of smart contracts on the insurance industry have been evaluated by 30 experts and managers in the insurance field, and the main strategy has been determined. After classifying the existing sub-strategies, the QSPM matrix was used to assign an attractiveness score to each strategy and prioritize them. The results of the SWOT matrix indicate that the best main strategy will be an offensive strategy. Also, the QSPM matrix introduces the hard smart contract design strategy as the best sub-strategy in the design and use of smart contract basic technologies in the insurance industry; The purpose of implementing smart contracts in the insurance industry is to speed up and facilitate insurance processes in addition to increasing security (reducing fraud); All the actors involved in this process, especially the insurer and the insured, can benefit from smart contracts in their insurance activities.

One of the governments' policy for export development is to cover political and commercial risks through the issuance of export insurance and guarantees products by export credit Agencies (ECA). In Iran, this plan is done by The Export Guarantee Fund of Iran (EGFI). The evidence indicates that the value of export insurance and guarantees product and also the number of exporters benefiting from them are low. Therefore, the main purpose of this study is to identify and prioritize the challenges of export insurance and guarantee products in the country based on the SBC approach. In addition, this study has been carried out by analytical-descriptive-survey method. In this approach after surveying of theoretical and experimental studies and obtaining the opinions of experts, the main challenges of exporters in using of export insurance and guarantee services are collected in the form of a questionnaire (including 34 component). After confirming its validity and reliability, the questionnaire was distributed among the selected exporters (current and former customers of the EGFI) and analyzed by SPSS software. The results of the questionnaire analysis indicate that, the exporters are faced with three types of challenges including content factors (such as the lack of exchange rate coverage, high risk of export destination countries, Obligatory credits of government and low capital adequacy of the fund), behavioral factors (restriction in foreign guarantees issuance, weak financial brokerage relations of the fund with foreign financial institution, lack of preferential insurance premiums, shortage of diversity of insurance instruments and weakness of electronic infrastructure) and structural factors (collateral problems, lack of policy coordination between the guarantee fund and Export Development Bank, lack of a comprehensive online risk map and Absence of export insurance and guarantee program for SME industries). Finally, some policy implication are presented in based on the three categories of factors mentioned.

Islam views social security as one of the primary responsibilities of society, centered around governance. This concept is emphasized and explicitly stated in Article 29 of the Constitution of the Islamic Republic of Iran. The mechanisms designed to achieve the objectives of the social security system in various societies, including Iran, largely rely on insurance systems, implemented through insurance organizations and pension funds. These funds, by collecting insurance premiums, undertake commitments that require payments to specific individuals at designated times. The efficiency of pension funds hinges on a sustainable balance between their financial resources and expenditures. However, in recent decades, these funds have faced serious financial imbalance challenges.To overcome the financial difficulties of pension funds, reforms have been considered in two main forms: parametric and structural. Among the most significant structural reforms is the stratification of social security services across different layers to reduce the financial pressure on the funds. The primary issue lies in determining how to structure this layering system in a way that fundamentally addresses the problems of the social security system, particularly the financial imbalances of pension funds.This research focuses on the issue of pension fund imbalances in Iran and their causes, including the neglect of social security functions in Islam. It examines a form of layering based on Islamic principles that encompass all social security functions in Islam, thereby preventing their confusion in practice.

The latest financial status of pension funds in Iran has been described and analyzed based on the most recent data available from reliable sources, along with an examination of its root causes. To address the financial imbalance of these funds, the solution of layering social security services based on Islamic texts and perspectives, particularly centered on the views of Shaheed Sayyid Muhammad Baqir al−Sadr (ra), has been explored. This is a novel discussion that has received little attention.The proposed innovation in this research is the stratification of social security services into five layers: preparatory, guarantee, restorative, security (Risk coverage), and supplementary. This approach aims to utilize the full capacity and functions of the Islamic social security system. It is designed to reduce the financial burden on pension funds, decrease their dependency on government budgets, and ensure the welfare of pensioners.

The findings of the research indicate that the most important structural reform within the framework of Islamic economics is the stratification of social security services into five layers: preparatory, guarantee, restorative, security(Risk coverage), and supplementary. This stratification is designed to separate support−based services from insurance−based services within the social security system. Insurance−based services, intended for wealthy and high−income individuals, are financed through Defined Contribution (DC) schemes and investment plans, while support−based services, targeting low−income or income−less individuals, are funded through public, communal, and governmental resources.
With these reforms, the supportive and non−supportive functions of the social security system are practically separated, ensuring that each group of beneficiaries has dedicated administrators and financial resources. Beneficiaries under thesupportive function of the social security system are fully provided for in the guarantee and restorative layers, while those under the insurance function are covered in the security and supplementary layers. The preparatory layer focuses on providing welfare infrastructure and opportunities for everyone in society, aiming to reduce the number of those needing support to a minimum over time.
As a result of these reforms, the financial pressure on pension funds is reduced, and gradually, their imbalance is corrected.

The low support ratio (around 3 on average across funds), high replacement rate (over 80 on average), high expenditure−to−revenue ratio (around 150 on average), and the increasing ratio of liabilities to assets indicate that most pension funds in Iran are either currently experiencing financial imbalance or are at risk of it. This situation points to the funds' inability to meet their obligations and their dependency on the government budget, which threatens the welfare of retirees and the elderly.Currently, despite the pension funds benefiting from national public budget resources and credits, the level of benefit adequacy provided by these funds is relatively low, posing an additional challenge. In the long−term outlook,estimatessuggest that the reserves of these funds will be depleted to zero, and their unfunded liabilities will continuously increase. Consequently, the level of benefits will significantly decline, jeopardizing the welfare of pensioners.Various demographic, structural, and managerial factors contribute to the current situation, with the most significant being the lack of attention to the different functions of social security and the specific tools and solutions required for each. The conflation of these functions imposes a heavy, often unfunded financial burden on pension funds. The most crucial structural reform needed is the stratification of social security services−a concept that has been increasingly emphasized by countries and international organizations over the past few decades, and various forms of stratification have been implemented.These stratifications must focus on the three primary functions of social security: the supportive function, the risk coverage function, and the function of ensuring livelihood during retirement. By identifying the appropriate tools and solutions for each function and distinguishing them from one another, each pension fund can concentrateon its primary function without bearing unnecessary financial burdens.The stratification of social security services in Islam, tailored to the different functions of social security with specific tools and solutions for each, is best organized into five layers: preparatory, guarantee, restorative, security, andsupplementary.The preparatory layer functions as a supportive mechanism for all segments of society, providing opportunities for work, effort, and income generation, aiming to minimize poverty within the community. The guarantee and restorative layers focus on the supportive function of social security, utilizing their dedicated tools and solutions to cover all living needs, risk protection, and retirement provisions for low−income or income−less groups in the lower−middle and lower classes of society.Meanwhile, the security (Risk coverage) and supplementary layers address the functions of risk coverage and retirement provision for the middle to upper segments of society.By implementing this stratified approach, the three core functions of social security−each with its dedicated tools, solutions, administrators, and financial resources−are separated, eliminating the existing overlaps in the social security system. As a result, both the government and pension funds will clearly define their respective areas of responsibility, freeing themselves from overlapping roles and financial dependencies on each other. This clarity allows them to fully provide for the groups under their coverage, ensuring that the welfare of no social segment is jeopardized.

The purpose of this study was to investigate the effect of the employer's insurance premium rate on the operating profit of each share and the change in the net sales income of the companies listed on the Tehran Stock Exchange. This study, in terms of the type of research; Correlation is cross-sectional and is considered practical in terms of purpose. The statistical population of the research included 666 companies admitted to Tehran Stock Exchange from the beginning of 2012 to the end of 2018, of which 111 companies were selected as a sample by systematic elimination method. In descriptive statistics, community parameters, including central indicators and community dispersion, were measured and information was analyzed using the regression method based on combined data and Hausman's tests, F (Limer)It was done by the software Oviz. The results showed that there is a significant relationship between the insurance rate of the employer's share, the operating profit per share and the change in the net sales income of the companies listed on the Tehran Stock Exchange. Therefore, it is better for the social security organization to consider the insurance premium rate according to the inflationary conditions and labor income in order to support the industries in attracting labor and the high insurance premium rate does not cause the company managers to increase the total price. to find goods and services.

One of the most important questions for economists is to explain the relationship between the real and financial sectors in economicsbecause understanding this link helps them to plan for economic growth. financial sector is one of the most critical factors in developing products and an essential link in creating different economic sectors, so it is necessary to understand the impact of changing this sector on other sectors. In this regard, the purpose of this article is to evaluate the position of financial intermediations in the country and explain its impact and effects on other economic sectors.

This article, using the Partial Extraction Method of Dietzenbacher & Lahr (2013) ,which is a modified version of Extraction Methods in evaluating economic sectors of the Input-Output table, studies the effects and consequences of 10% positive shock in the financial sub-sectors of Iran including bank, sub-sector insurance, and sub-sector financial intermediations. The table used in this research is the input-output table of 2017, which has been calculated through the semi-statistical method of RAS based on the input-output table of 2011. The input-output analytical table is an industry-industry symmetric table or a commodity-commodity one. The industry-industry table demonstrates what each economic sector has given to other sectors (supply of products) and what it has taken or received from them (demand for inputs).

Due to the positive shock in the field of banking services, 5 sectors will face the most added value; dwelling constructions, other constructions, compulsory social security activities and farming of animals. As a result of a positive shock to the financial intermediation services, 5 sectors will face the most added value;manufacturing iron and steel, manufacturing other basic metals and casting metal, the manufacture, repair and installation of computer, electronic and optical products, manufacturing motor vehicles, trailers, and semi-trailers. Due to the positive shock to the insurance services, the sectors that will create the most added value are: other constructions, coal and lignite mining, manufacturing, repair and installation of computer, electronic and optical products, stone, sand and clay mining and transportation.

The results of this study show that in case of a 10% increase in the supply of banking services (with codes 6411 and 6419 ISIC) in Iran economy, the "dwelling constructions" sector will face a 1.12% increase in value-added, which is equal to 2851589 million Rials. Its intermediate output has witnessed a growth of 1982931 million Rials, equivalent to 0.52%. After this sector, the activities of "other constructions," "compulsory social security activities," and "farming of animals" face 1.01, 0.85, and 0.79 percent increase in value-added. In case of a 10% increase in the supply of financial intermediations services (with codes 642, 643, 649, 661, 662, and 663 ISIC), the "manufacture of basic iron and steel" with a 0.6% increase in value-added equal to 751357 million Rials will face an intermediate output of 161748 million Rials, equivalent to 0.06% increase. After this section,there are the activities of "Manufacture of other basic metal and casting metals," "manufacture, repair, and installation of computer, electronic and optical products," and "manufacture of motor vehicles, trailers, and semi-trailers" with 0.52 and 0.48% and 0.47% increase in value-added. If the supply of insurance services (with codes 651, 652, and 653 ISIC) in the Iran economy increases by 10%, the "other constructions" sector will face a 0.53% increase in value-added, which is equal to 1940166 million Rials as its intermediate output is 1224203 million. Rials have witnessed a rise of 0.26%. After this sector, the activities of "coal and lignite mining," "manufacturing, repair and installation of computer, electronic and optical products," and "stone, sand and clay mining" activities will face 0.46%, 0.39%, and 0.30% increase in value-added. Finally, all types of financial services were aggregated, and a 10% increase in the supply of the financial sector in Iran economy was studied. The results showed that "other constructions" sector faces a 1.69% increase in value-added, equivalent to 614627 million Rials, as its intermediate output will increase by 3878263 million Rials (0.82%). After that, the sectors "Construction, repair, and installation of computer, electronic and optical products," "dwelling constructions," and "farming of animals" face 1.57, 1.50, and 1.40 percent will increase in  added value.

The purpose of this study is to investigate the effects of Economic Policy Uncertainty (EPU) on the insurance industry in the Middle East and North Africa in the period 2000 to 2020. In this study, for the EPU variable, a composite index consisting of four policy variables is defined and calculated. The results of PMG estimation method for all three models of the present study show that EPU increases the premium in the short and long term and its long-term effect is greater than the short-term effect. Also, the variables of income, education, population, financial development index and institutional quality have increased premiums (in general, life and non-life) and their impact is positive and significant, but inflation variables have a negative and significant effect on premiums in all it has research models. Based on the research results, it is recommended to adopt appropriate and sustainable economic policies, pay attention to financial development, promote financial literacy and the quality of institutions for the prosperity of the insurance industry.

To reply to the question of whether financial development leads to economic growth or financial development benefits come from economic growth, macro-financial economics literature suggests testing a two-way and even non-linearity relationship. In this paper, by applying markov-switching approach, we investigate the two-way linkage between universal financial development indicators (in aspects of depth, international flows, access, efficiency, and stability) and total and sectoral (agriculture, industry, and services) growth in 3rd to 11th cabinet after the revolution (1982-2017). Evidence reveals that there are co-movements between different aspects of financial development and real sector growth regimes (except 9th and 10th cabinets); such that, ome stylized facts are supporting the financial services supply-leading hypothesis. Moreover, there are more than 60 notes (in 1st and 2nd development programs) and articles (in 3rd, 4th and 5th development programs) related to the financial system, which are made without a comprehensive strategy and are based on financial repressions and sectoral discriminations; therefore, they did not contribute to "balanced financial development".

The mutual relationship between financial development, as a multilateral concept, and inflation, as a key indicator of macro-economy is crucial. In this paper, inflation regimes are identified using Markov-Switching approach, and then the finance-inflation mutual relationship is investigated in post-revolution cabinets in Iran (1982-2017). Our findings suggest that there are mutual co-movements between different laterals of financial development and inflation regimes in Iran. On one hand, financial access can decrease inflation. On the other hand, inflation distorts international financial depth, financial system efficiency, and financial stability. However, it encourages some domestic financial depth laterals. Generally, the best performance of financial development to maintain inflation in the low regimes was in the 7th and 8th cabinets, and the worst performance was experienced in the 9th and 10th cabinets because of the release of the suppressed inflation accumulated due to severe financial repressions.

Undoubtedly, consumption is an important factor in the economy and household welfare, and increasing items of household consumption expenditures will lead to an increase in total consumption and household welfare. Insurance is one of the household consumption items, nowadays; it is inevitable not to have an insurance policy in the household. Insurers are trying to increase the influence of insurance on households, in other words, they are looking to increase sales of their products among households. The estimates of this article using the data of household expenditure income of the Statistics Center of Iran in 2009-2010 show that demographic features are effective in the household expenditure pattern. As the variable of residence, the number of people with household literacy, age, gender and employment conditions of the head of the household play a role in consumption. The estimates of this article using the data of household expenditure income of the Statistics Center of Iran in 2009-2010 show that demographic features are effective in the household expenditure pattern. As the variable of residence, the number of people with household literacy, age, gender and employment conditions of the head of the household play a role in consumption.

Achieving economic growth along with improving the distribution of income is always one of the main goals of economic development. In this regard, policy makers are the tools and policies that enhance the growth and distribution of income in a coherent way. On the other hand, it is expected that the insurance industry will be able to provide simultaneous access to economic growth and distribution of income, taking into account the function of risk distribution and its compensation, as well as its role in financial development. To test this hypothesis, here has used of the AutoRegressive Distributed Lag (ARDL) approach during the period 1975-2016.The results showed that the development of the insurance industry could provide simultaneous access to economic growth and income distribution in the short run. But in the long run, it will only lead to economic growth. However, in the long run, it could be reliant on human and physical capital for simultaneous access to economic growth and the distribution of income. Also, based on the error correction model, 88.2% and 68.1% of the non-equilibrium related to the non-oil per capita gross domestic product and Gini coefficient are adjusted in each period, respectively.

In The second half of the 20th century onwards, especially since the 1970s, following widening the income gap between the poor and the rich as well as the development in public awareness, it has been emphasized on increasing the quality of life (Mehregan & Salarian, 2008:13). In general, classical and neoclassical economists believe that an uneven distribution of income can have a positive effect on the growth process, while others such as Mirdal and Sen believe that economic growth entails an improvement in income distribution and in fact considers the reduction of inequality necessary (Khodadad Kashi & Heidari, 2008: 153). However, if economic growth and improvement in income distribution are considered two essential components of economic development, there are three strategies for development (Sharifzadegan, 2007: 23-24):A) Growth then Redistribution (GTR): Accordingly, with economic growth and the creation of vast economic capacities and enlarging the size of the economy, the conditions for employment is automatically provided for all social and income groups, thereby achieving a balanced income distribution.B) Redilribution then Growth (RTG): In this strategy, comprehensive resources are mainly spent on proper distribution of income, and investment on economic growth and attention to it comes at a lower level, and practically undermines the social capacity of the community. Many experiences and studies show that in the long run, this policy will not achieve a balanced distribution of income or economic growth.C) Growth with Redistribution (GWR): This strategy emphasizes that income redistribution cannot work without relying on a booming economy. In this strategy, executive policies should be able to work both for economic growth and for income distribution. The development of the insurance industry with the aim of fostering economic growth and improving income distribution can also be considered as one of the policies of this strategy.

In this section, the following two econometric models are considered to examine the effects of the development of the insurance industry on economic growth and income distribution:(1) (2) In the empirical studies, the variable level of income is present in the income distribution model, but the present study assumes that the level of income of individuals affected by physical wealth (physical capital or CAPL) and human wealth and capital (skill, expertise, and education level or HCAP). Accordingly, the LHCAP and LCAPL variables are used in the income distribution model instead of the natural logarithm of the income level. The research models for the period 1975-2016 will be estimated using the ARDL method.

Because dynamic short-run interactions between variables are not considered in OLS method, the use of this method in estimating the long-run relationship does not necessarily yield unbiased estimation. Therefore, it seems reasonable that in such cases those models be considered that have short-term dynamics and thus make the model coefficients more accurately estimated. The ARDL method is a dynamic model that allows to estimate the long-run coefficients of the model with appropriate accuracy in addition to the cointegration test between variables (Nofersti, 2008). The main advantage of using the ARDL method is that regardless of whether the research variables have unit root in levels or some become stationary by one time differentiation, a long-run cointegration relationship between the variables can be obtained.

Achieving high economic growth coupled with improved income distribution has always been a major concern for policymakers in developing countries. In this regard, based on their historical experiences and those of other countries as well as the theoretical and empirical studies, countries prefer the strategy of Growth with Redistribution over GTR strategy or vice versa. On the other hand, insurance is expected to provide simultaneous access to economic growth and income distribution, given its functional role in risk distribution and compensation as well as its role in financial development. In the present study, this hypothesis was tested for the Iranian economy over the period 1975-2016 using the ARDL method.The results of estimating income distribution model as ARDL (1, 1, 2, 3, 3, 1) showed that insurance penetration factor variables had a negative effect on Gini coefficient immediately and with a one-year lag. Oil revenues also have an impact on the Gini coefficient similar to that of the insurance industry, with its effect initially positive and negative with a one-year lag. But human capital with a two- and three-year lag and physical capital with a three-year lag have a negative effect on the Gini coefficient. Also, the results of estimation of economic growth model as ARDL (2,1,2,2,0) showed that development of insurance industry has positive and immediate effect on economic growth. The variables of human and physical capital have a positive significant lagged and non-lagged effect, and business openness variables have a positive and significant effect on economic growth after one-year lag.

Assessing the performance of organizations has always been a challenge for researchers and therefore various methods and techniques have been introduced and used throughout the years for this purpose. One such technique is a fuzzy method based on a modified linguistic comparison ordering operator using the weighted geometric mean in interactive group decision-making. On the other hand, as a developing industry, the insurance industry has attracted the attention of many researchers and managers.  Among the diverse range of topics related to this industry, the issue of assessing and evaluating the performance of different departments and branches has always been of great interest to experts in this field. This is due to the fact that this evaluation can help in taking effective steps toward improvement. The research population in this study were the employees of Sina and Karafarin Insurance in Iran's Yazd province. Analysis of the desired state and status quo of these companies concludes that there is a need for improvement, especially through improvements in the dimensions of growth and learning. However, comparison of the related criteria shows that, with regard to Karafarin and Sina Insurance Company respectively, it is the number of employees trained for management and the percentage of the annual number of insurance policies to the number of policies in the industry that require more urgent improvement. These results were also accepted by members of the group.

Nowadays, deposit insurance plays a significant role in the financial stability of countries, and most countries have implemented this system in their countries.  However, since in the deposit insurance process, it is unknown whether something will happen in the future or not, there are still disagreements between jurisconsults concerning this system, and they believe that factors such as risk and gamble would enter deposit insurance. Therefore, this article aimed to investigate the Legitimacy of deposit insurance through the investigation of typical insurances and comparing them with deposit insurance. For this purpose, in this article, the secondary and descriptive-analytical techniques were adapted. According to the obtained results, it was identified that deposit insurance is a necessary, defined, logical, completed and probable contract, and risk and gamble are not included in deposit insurance. Finally, we realize that deposit insurance is independent from other contracts such as gift, peace and guarantee, and has no compliance with these contracts. Thus, if a contract is authenticated by religious laws, the contract can be used. Considering these conditions, deposit insurance is authenticated and its usage is permitted.

In Islam, economic justice is based on two dimensions of social balance and social Takaful From the point of view of social balance, eradicating poverty is an issue of Islamic society, and from the point of view of social tact, it refers to the social responsibility of each individual in dealing with problems in society. Nowadays, Takaful has attracted the attention of Islamic finance scholars and financial market players around the world as one of the most commonly used models in risk coverage and insurance. In overall mechanism of the Takaful that's it the motakafelin, under a religious contract, pays a sum of money to the Takaful Fund as gifts and receives a certain services (such as payment of damages, etc.). Also the resources of the Takaful Fund are invested in projects which have a religious nature, and incomes are earned through investment. Takaful Company receives through this income a sum as a wage (Previously agreed upon between the members and the company). The principle of public bail is governed on this pattern as one of the basic principles of the Islamic economic system. According to this principle, the community members are mutually exclusive and they should take each other's bail. Accordingly, in this risk-taking pattern, unlike the usual insurance that is profitable, economic justice is well realized.

One of the initiatives of specialists in finance is derivative financial instruments which has a special role in the growth of financial markets. The main objective of developing these tools is confronting the risks that they become more evolved and variant over time. One of the most important tools is the option contract which is more flexible comparing to other derivative tools, so price fluctuation Risks are better covered, but as far as option contracts are of the new ones, a group of jurists and lawyers criticized these contracts and they are not sure about their authenticity. Also, there are two shortcomings in same future contracts that make an option deal. In same future contracts, the price is fixed in the contract and it prevents price change risks, but the two parties do not profit from market changes. The second shortcoming is the inability to use it for managing possible and expediency debts, but in legal discussions, Option deal is not considered as a memorandum or insurance, but they can be corrected legally. In this paper, the theories of Shiite and Sunni scholars are presented with their explanations

In recent years, the role and importance of information have been quickly entered into the theories and policies. All reforms of health policies, including voluntary health insurance are necessarily in need of addressing the problem of asymmetric information.The present study examined the relationship between health risk and the probability of voluntary health insurance using probit model. Then, the causes of the correlation between voluntary health information and health risk were identified by ordered probit model. The results of the study show a negative correlation between health risk and probability of voluntary health insurance which is related to moral hazards in insurance market. The main reason is the incompetence and inefficiency of insurance system. According to the study, the negative correlation is related to the information that insurance companies obtained and screenings in the insurance market by choosing strategies for dealing with moral hazard not the heterogeneous risk preferences of individuals.

While many studies have been conducted regarding the analysis and risk assessment in the insurance, less attention has been paid to cognitive and objective aspects of uncertainty concept. The role of insurance companies to cover existing uncertainty in the framework of legal contracts can be crystallized. Thus, the measurement unit of dealing between insurer and insured is transaction. Imperfect and asymmetric information, in the form of bounded rationality, the greatest contribution to the creation of transaction costs due to adverse selection and moral hazard. Transaction cost economics approach, which is based on the new institutional economics approach, is the method for explication, analyzing, and prescription to reduce transaction costs (due to formal and informal institutions) and consequently the associated risks. There is much evidence that can be through deep underastanding of transaction cost concept and institutional factors, much of the relevant risks identified and the stability controled and managed. In addition, the role of government institution in risk management, in terms of Sovereign duties, Legislation and Policy in reducing transaction costs in downstream entities has fundamental importance. Therefore, risk management structure can be designed and organized based on transaction cost economics approch associated with Standard risk assessment system, can be designed and organized.

This study investigates the causal linkages between insurance and globalizationin Developing 8 countries (D8) by focusing on country-specific analysis over the period 1999–2011. To this end, we use insurance penetration rate (as a proxy insurance activities), globalization index KOF (as a proxy of globalization) and economic growth (as a control variable) as research variables. We apply the panel causality test provided by Konya (2006). This method is based on the Seemingly Unrelated Regressions (SUR) model and Wald tests with the country-specific bootstrap critical values. The findings indicate bidirectional causality between insurance and globalization for Malaysia and Indonesia, unidirectional causality running from the globalization to the insurance for Iran, Turkey and Bangladesh and lack of causality between the insurance and the globalization for Nigeria, Egypt and Pakistan. Accordingly, we can say that the causality between insurance and globalization are not the same in the D8 members, with regard to their particular circumstances.