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Questions about insurance services in Producer Price Index(PPI)
Answer
  • WriterShin-Yun Tsai
  • Date2022-11-30
  • Views766
Dear Sir/Madam,

I have some questions about insurance services in Producer Price Index(PPI).

1. How are insurance services weighted?
2. How do you define the price in insurance services of PPI?
     Premiums or the premium received by the insurer plus the rate of return on their invested premiums?  
3. There are 5 items in insurance services of PPI : Fire insurance, Marine insurance, Motor insurance, Casualty 
     insurance, and Guarantee insurance. 
     According to 2014.12 Eurostat-OECD Methodological Guide for Developing Producer Price Indices for Service, 
     there are 8 methods for pricing service activities : 
     (1) direct use of prices of repeated services
     (2) contract pricing method
     (3) unit value method
     (4) percentage fee method
     (5) component pricing method
     (6) model pricing method
     (7) time based methods
     (8) margin pricing method
      Would you please tell us which kinds of methods do you use on the items, respectively?
4. When compiling insurance index, do you consider inflation? 
     Do you use some economic indices to adjust the premiums or rates supplied by the insurer to account for 
     inflation?
     If you consider inflation.
     (1) What is the core concept about consider inflation when compiling insurance services index in PPI?
     (2) Would you please tell us what economic indices do you use to account inflation in each line of insurance?
     (3) How often do you use economic indices to account for inflation? Monthy or Yearly?
     (4) Which time series data do you use for inflation? 
           Current month data, previous month data or the average data of previous year?

I am looking forward to your reply.
And, I truly appreciate your help. 

Best Regards,
Shin-Yun Tsai
Answer Statistics Korea/2022-12-13
Dear Shin-Yun Tsai, 

Thank you for visiting the KOSIS website.

Statistics Korea is not in charge of statistical production of the Producer Price Index (PPI).

According to the Bank of Korea responsible for the PPI, a staff member in charge of insurance services is on a business trip. Please send an email (pricestat@bok.or.kr) to get information on the PPI, the IPI and the EPI. 

Warm regards,

Statistics Korea
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