Insurances and Consumer Perception in the Romanian Insurance Market

AbstractConsumer behavior remains a debated area in the economic fields duet o its particularities that are connected to the way information is presented or to the characteristics of the market. Insurance market is a different market that impose a different perception and various factors that influence the insurance acquistion. Uncertainty can be considered a key element of selling insurance, for the event which is the subject of the insurance contract may occur or not an event is possible, and uncertain future. The need for security is also an uncertain factors influencing this decision entailing particular due to the intangibility and lack of transparency. Also Romanian clients have different particularities due to the fact that their income are low and concentrate only on necessary goods. The impact of the crisis still has repercussions on the perception of the Romanian buyer

Blended Learning Model: A Feasible Option for Romanian Undergraduate Education System

The accelerating development of new technologies has created a new educational context to which all the education system, including the Romanian one, should try to adapt. Blended learning has become one of the key concepts in the new educational environment. Thus, this paper aims to provide a clearer image of what blended learning means and what are its models, besides what advantages and disadvantages it can bring to the education system. Moreover, this study will focus on whether each model of blended learning can be implemented for each of the stages of the education system. Finally, the study will attempt to establish if any of the blended learning model is suitable for the Romanian undergraduate education system and, moreover, to which stage it should be more appropriate. Overall, this paper contributes to the literature firstly by placing the concept of blended learning in the context of the undergraduate education system and secondly by analyzing the possibility to implement a blended learning system in the Romanian education

BEHAVIORAL ASPECTS IN INSURANCE MARKET

The insurance industry has an essential economic importance.In spite of the great progress,we have to emphase that the existing theoretic models cannot entirely explain the mechanism of the insurance market and of its decisional process,especially in the case of the events with low probabilities.That is the point where the behavioral economists come with a larger view of the factors that influence the consumer decision explained through the Prospect Theory of Kahneman and Tversky, through the Cumulative Prospect Theory that represents an enhanced view of the Prospect Theory and Prelec function.The concept of utility is also detailed in some extend in this paper contribuing to a larger perspective about decision in insurance market and its role in the development of insurance market.Prospect theory tries to emphasize the role of psychological effects upon the consumption decision showing that the economic agent does not have a rational behavior and is not risk averse in all situation. In this paper there are showed and debated some situation in which psychological effects like loss aversion, reference point, status-quo and framming effects can influence the deccision of the consumer and are not consistent with the standard economic model.In addition to this aspects, Cumulative Prspect Theory enhance the fact that decision makers overestimate low peobabilities and underestimate high probabilities,thus buying inadequate insurance in many situation.in thiss sense, in order to support this idea I tried to make a qualitative presentation of the model used on the insurance market using Prelec function which is the function related with the Cumulative Prospect Theory which can be used in the insurance context.The weak points of the theory of expected utility are explained through this new perspectives and nevertheless aspects like insensivity to bad news concerning incomes,elasticity of price,displacements of status-quo and default,disposition effect and equity premium are taken into consideration.As example,I chose a Kunreuther experiment about insurance decision in with is underlyined the fact that for moderate risk people buy insurance with premiums that exceed the expected loss.There are demands for low deductibles in the the markets for extended guarantees and insurances for mobile phones where was observed that the insurance underwriting rate increases with the probability of loss keeping the expected loss constant.It is better to mention that the theory and the model that are presented here comes as complementary to the economic standard theory not as a substitute

IMPACT OF THE FINANCIAL CRISIS UPON EASTERN EUROPE COUNTRIES: STILL A PROBLEM FOR THE ECONOMY OF THE REGION?

The paper looks at the impact of the global economic and financial crisis on a number of central, eastern and south-eastern European countries. The global crisis can be viewed as three interdependent and mutually reinforcing crises: a financial crisis, a liquidity crisis, and a crisis in the real economy. The financial crises that have emerged and developed in the recent decades have been characterized, mostly of an international dimension, with shocks quickly propagating through capital markets, through the international banking activities and, through the money markets.East Europe was hit first by the global liquidity crisis, then by declines in capital inflows and plunging demand for their exports.Before the crisis, the Eastern region was experiencing an economic boom with rapid GDP and credit growth, but in the future East European countries will have to rely relatively more on internally-generated sources of productivity growth

Europa and Romania – an insurance overview

Insurance industry has known an important growth during the last ten years, growth that has been sustained by the international investments, financial growth and the development of new insurance products that were required for special security needs in personal or business area. During the crises, the insurance sector has been also affected with major volume subscribing premiums due to the lack of liquidity although people should have been more risk averse than usually are. The purpose of this paper is to analyze the evolution of the insurance market in the last years and new trends of the market in Europe and Romania having into consideration the multiple factors that can trigger the need for insurance. The quality of live, the revenue and socio-cultural factors can influence the consumer behavior, on the other hand the financial framework it is analyzed in order to observe the fluctuation of insurances’ indicators. Moreover, describing the insurance European environment and Romanian one can create a framework in which we can understand better the circumstances in which the insurance consumer makes decisions

COMPARATIVE ANALYSIS OF VAT EVOLUTION IN THE EUROPEAN ECONOMIC SYSTEM

In this paper we study a comparative analysis of VAT in different states of the world. I made some observation on this theme because I believe that VAT is very important in carrying out transactions and the increase or decrease of this tax has a major impact upon national economies and also on the quality of life in developing countries. The papers has to pourpose to make a comparison between the American and European system of taxation with its advantages and disadvantages and, in the end to render an economic model and its statistics components. VAT is a value added tax which appeared about 50 years, initially with two purposes: one to replace certain indirect taxes, and another to reduce the budget deficit according to the faith of that time. The first country that has adopted this model was France, calling it today as value-added tax

Mihaela Andreea Stroe 223 COMPARATIVE ANALYSIS OF VAT EVOLUTION IN THE EUROPEAN ECONOMIC SYSTEM

Abstract In this paper we study a comparative analysis of VA

PERSPECTIVES UPON CONSUMPTION AND HAPPINESS

Consumers are described by economists as rational people when making a decision and when interacting with different types of framing problems. Theories explaining rational "consumer's rational behaviour" , assume that emotions can be controlled and even ignored so people be able to behave in a rational manner. An important issue was to establish the rational economic report between resources and needs and finding ways to optimize it. Rational consumer behaviour is considered to be one that ensures maximum consumer satisfaction with maximum efficiency at minimum cost. Each user asks himself at one point, if happiness is found in material goods and services. Economists would like that the consumers believe that in their attempt to explain buying behaviour. However, it is a matter of debate if psychological records tend to state otherwise. It is suggested that people buy goods and services hoping that they will substitute the factors that make them truly happy . It is debatable whether consumption is detrimental to human happiness and if the link between consumption and happiness extends to all buying experiences