-
INFLUENCE OF THE LEGAL FRAMEWORK
IN DETERMINING THE REQUIRED AMOUNT
OF TECHNICAL RESERVES FOR MOTOR THIRD PARTY LIABILITY INSURANCE
The problems arising from the recent global financial and economic crisis have led to a rethinking of many texts both in local laws and at Community level. New rules and regulations have gradually been introduced concerning all economic agents operating within the European Union. The introduction of these regulations in the field of insurance is ...
The problems arising from the recent global financial and economic crisis have led to a rethinking of many texts both in local laws and at Community level. New rules and regulations have gradually been introduced concerning all economic agents operating within the European Union. The introduction of these regulations in the field of insurance is associated with the adoption of Solvency II Directive. The implementation of the Directive in the Bulgarian legislation was realized with the adoption of a new Insurance Code, effective as of 1 January 2016 and Financial Supervision Commission’s Ordinance No 53 of 19 January 2017, which determines the order and method of allocation of technical reserves by the insurers working on the Bulgarian insurance market.
The study assesses the impact of the regulatory framework on the technical reserves of insurance companies offering Motor Third Party Liability Insurance. It outlines the problems that insurers have to deal with and the effect that the methods, used for calculating the required amount of technical reserves, have on the insurance company’s balance sheet.
The study has shown that there are differences in the methodologies described in the Solvency II Directive and Ordinance No 53 of Financial Supervision Commission. They concern the valuation of insurance companies’ assets and liabilities, the recognition of cash flows and the treatment of insurance income and expenses. Therefore, legislative changes are needed to synchronize the requirements of Bulgarian legislation with the European Directive Solvency II, with a view to optimizing the amount of technical reserves for Motor Third Party Liability Insurance.
-
DEVELOPMENT OF COMMERCIAL BANKS BRANCH NETWORK ‒ A CRITICAL EVALUATION
OF THEORY AND PRACTICE
This study focuses on commercial banking and the development of branch networks as an essential part of the banking system. At the centre of the analysis is the relationship between the expansion of the branch networks of commercial banks and the influence of the following four factors: the dynamics of the economic development cycle at global, ...
This study focuses on commercial banking and the development of branch networks as an essential part of the banking system. At the centre of the analysis is the relationship between the expansion of the branch networks of commercial banks and the influence of the following four factors: the dynamics of the economic development cycle at global, national and regional levels; the processes of consolidation in the banking system; the evolution of information technology and electronic banking and regulatory policy and restrictive measures including insolvency procedures that the central bank establishes in its supervisory capacity for the banking sector. The aim of this study is to offer a critical evaluation of the factors influencing the decision-making concerning the dynamics in the branch network of commercial banks, both at a sector level and in the context of the individual banks. The paper comprises four main parts: Firstly, a critical review of the regulatory system and contemporary scientific studies in the area of bank administration and branch network management, including the structure of decision-making factors in relation to expanding, maintaining or reducing the network of bank branches; Secondly, historical and empirical-applied analysis of the dynamics in the licensed banking institutions and their positioning on the competitive banking market in Bulgaria; and thirdly, analysis of the financial indicators for the banking system and the related trends in the development of the branch network of the commercial banks in Bulgaria and their staffing. As a result of the study, it has been confirmed by the empirical data for the Bulgarian banking market that after 1989 the dynamics in the branch network was originally due to the dynamics in the creation and merger of banking institutions. During the period of EU membership, this process has been based mainly on the key factors developed with the priority of the regional demand and supply of banking services. About the two leading banking institutions, in terms of bank staff numbers, number of branches and personnel per branch for the two leading Bulgarian banks, the analysis has shown the following results: 3049 people, employed in 173 branches with a 17.6 average number of employees per bank branch for Unicredit Bulbank (data relating central management as well) and respectively, in the system of DSK Bank - 4115 people with an
-
PAYMENTS FOR PROPHYLAXIS AND REHABILITATION AS A FORM OF RISK PREVENTION IN THE PUBLIC SOCIAL SECURITY SYSTEM OF BULGARIA
An attempt has been made to substantiate the thesis that the organisational development and improvement of prophylaxis and rehabilitation payments have significant capacity to promote prevention and overcome the consequences of risk as a form of proactive approach to the public social security management. The study of the opportunities for ...
An attempt has been made to substantiate the thesis that the organisational development and improvement of prophylaxis and rehabilitation payments have significant capacity to promote prevention and overcome the consequences of risk as a form of proactive approach to the public social security management. The study of the opportunities for organisational development and improvement of the payments for prophylaxis and rehabilitation is the main objective of the study. The following specific tasks are set: study of the principles and limitations of the prevention of risk in the social insurance activity; justification of the need for continuing integration and development of prophylaxis and rehabilitation as an element of the Bulgarian social security system; study of the specificity of morbidity and traumatism among insured persons; evaluation of payments for prophylaxis and rehabilitation and formulation of proposals for their organisational development and improvement. The results of the survey confirm the necessity to make payments with a preventive and long-term effect, testify to the achievement of good organisational level of prophylaxis and rehabilitation in the NSSI system and outline the opportunities for their development and improvement. Organisational changes with significant capacity for continued successful integration of prevention and overcoming the consequences of risk as a form of proactive approach to the public social security management in Bulgaria have been proposed.
