The insurance industry is in a state of change. Convergence, globalization and consolidation - as well as new technologies and changing demographics - are impacting the pace and level of change. As a result, insurance companies will be challenged to remain competitive and, ultimately, to thrive. Effective management of capital...
The insurance industry has recently promoted legislation that, if enacted, would lead to a government backdrop for terrorism reinsurance. In essence, the federal government would reinsure the reinsurance companies for its terrorism losses. This paper considers four possible rationales for a government backdrop. Each rationale relies on the presence of...
The events of September 11 highlighted how unpredictable and devastating terrorist attacks can be. The insurance industry is now trying to find if such attacks can be predicted and priced for. This article reports that in a race against both time and each other, the risk modeling agencies say they...
The United States insurance industry has continued to look for new ways to increase profitability, whether it is in designing new ways to produce revenue, or introduce project management to the equation to reduce expenses. The document emphasizes that outsourcing reduces expenses. Many of the advantages of outsourcing technology have...
The civilized world is coming to terms with the human and economic losses from the terrorist attacks of September 11. The insurance industry has begun asking itself some important questions: What lessons can one learn from this tragedy? Could one have been better prepared to manage the consequences of this...
Executive compensation may have generated more media attention, governmental scrutiny and shareholder activism over the last two years than at any time during the past. Although few complaints were heard about excessive pay when the stock market was rising, some critics are now singling out executive compensation as the major...
The enterprise in a rating bureau risk model is the insurance industry. This paper describes how statewide or national loss exceedance curve output from a catastrophe model for workers compensation losses from terrorist attacks can be combined with insurance industry financial data in a basic model to estimate the financial...
The insurance industry has seen a great deal of change over the past 20 years such as product innovation, geographic expansion, industry restructuring, unprecedented risks and company failures. And it is now at an inflection point in the role it plays in the broader business community. Insurance currently underpins every...
This paper provides information on operational risk in the US insurance industry and presents evidence on the stock market impact that operational loss events have on the affected, publicly-traded insurers and on the industry as a whole. The author finds that operational loss events have significant negative effects on the...
In the long term, climate protection measures are necessary to buck the trend of reducing greenhouse gas emissions, scaling back the use of fossil fuels, developing new technologies. In the short and medium term, the trend can be slowed by influencing settlement patterns and enforcing appropriate construction standards as well...
The international insurance industry has been screening its existing terms and conditions for potentially ruinous risks and has identified certain weak points. The report believes that one of the most perilous shortcomings in traditional property insurance and reinsurance concerns inadequate nuclear risk exclusions. Insurance portfolios have always been exposed to...
The insurance industry has changed dramatically over the last decade with the development of technology, mergers and the emergence of a global marketplace. This has impacted on the way the industry interacts with consumers, and more efficient and transparent practices are necessary to enhance their public image and improve consumer...
The insurance industry has experienced a severe financial impact because of the events of September 11th. The magnitude and outcome of this impact cannot be measured for months, perhaps years; however, the near-term affects will have significant implications for all businesses in all industries. There are many challenges ahead for...
One of the more significant health care stories of the past few months has been the settlement several leading insurance companies have made with physician groups regarding reimbursement. The charge from physician organizations was simply that insurers were denying legitimate claims, down-coding and as a result, significantly and maliciously underpaying....
The weeks since September 11 have seen representatives of one industry after another traveling to Washington to propose government solutions to the business problems they face after the attacks. Perhaps second only to the airline industry in the intensity and immediacy of its effort has been the insurance industry. Within...
Mold has been the subject of much discussion lately within the insurance industry, as well as by others affected in their own right, such as lawyers, environmental consultants and consumer groups. While mold is certainly a cause for legitimate concern by the insurance industry, there are several reasons why the...
The insurance industry, long considered a rock of stability, is now facing major challenges brought about by various factors. How insurance firms respond to these challenges in this economic landscape can have repercussions affecting not only short-term profitability, but also long-term financial prosperity and survival. From the insurance industry's perspective...
This article discusses how toxic mold claims demand insurer action. To encourage good tenant and employee relations and for legal protection, building occupants should be notified of large-scale toxic mold remediation, along with a description of the remedial measures to be taken with a timetable for completion. The insurance industry...
Economic environments have a profound effect on the growth of the insurance industry. History has shown that, although the performance of the insurance industry is closely linked to economic conditions, the life business has been able to survive in different economic environments. The insurance industry as a whole and the...
This paper deals with the cyber insurance. The insurance industry has developed cyber insurance products to help businesses confront the growing number of network security risks that have the potential to shutdown a network, destroy vital data or steal customer information. For example, as the public becomes more concerned about...
