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Accounting Information for Improvement of Cost Planning in Accident Insurance

Author

Listed:
  • Ticijan, PERUŠKO

    (Juraj Dobrila University of Pula, Faculty of Economics and Tourism “Dr. Mijo Mirković” Pula (CROATIA))

Abstract

Accounting information facilitates business analysis in previous periods and forms a basis for prediction and planning. Application of accounting information about costs of acquisition and expenditure for insured cases in accident insurance in the insurance market provides an information base for consideration of current, and prediction of future, annual market trends. Prediction models, therefore, become a necessity in insurance company modern business practice. By the research, a prediction model is obtained which, by application of accounting information about costs of acquisition and expenditure for insured cases, with the use of statistical and mathematical methods, enables estimates of annual costs of acquisition and expenditure for insured cases in the insurance market. By differentiating acquisition costs from commission costs and other acquisition costs, detailed information is provided about the structure of the accident insurance acquisition costs. By research and setting up of the model, accounting information is obtained about anticipated annual costs and expenses for claims and its application in insurance company business is demonstrated. The positions of earned premiums, acquisition costs, expenses for insured cases and number of accident insurance policies are thus encompassed by the model. The aim of the conducted research was to develop a model which generates prognostic information for the needs of business management in accident insurance. The information provided by the model improves the processes of planning and prediction of costs of acquisition and expenditure for claims in the market and the model practicability is shown on the example of insurance company acquisition cost management.

Suggested Citation

  • Ticijan, PERUŠKO, 2020. "Accounting Information for Improvement of Cost Planning in Accident Insurance," Journal of Economic and Social Development, Clinical Journals Press, vol. 7(01), pages 01-10, March.
  • Handle: RePEc:ris:joeasd:0073
    as

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    References listed on IDEAS

    as
    1. Karthik Sriram & Peng Shi & Pulak Ghosh, 2016. "A Bayesian quantile regression model for insurance company costs data," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 179(1), pages 177-202, January.
    2. Li, Susan X. & Huang, Zhimin, 1996. "Determination of the portfolio selection for a property-liability insurance company," European Journal of Operational Research, Elsevier, vol. 88(2), pages 257-268, January.
    3. Luminita Rus, 2014. "Is It Important The Accounting Model Used By The Economic Entity In Making Decisions By The Users Of The Information? Points Of View," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 669-677, July.
    4. Harish V. Rao & Goutam Dutta & Sankarshan Basu, 2018. "New asset liability management model with decision support system for life insurance companies: interface design issues for database and mathematical models," International Journal of Revenue Management, Inderscience Enterprises Ltd, vol. 10(3/4), pages 259-289.
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    More about this item

    Keywords

    accounting information; insurance companies; accident insurance; acquisition costs; commission costs; cost management;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

    Statistics

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