The Use of Value Added
Article Abstract:
The life insurance industry is undergoing a revolution with regard to strategy and organization. Accordingly, careful evaluation of various actions and performance standards has become an important concern. Quantification is needed for forming long-term financial goals, forming new ventures and distribution systems as well as products, appropriate trades between the long-term goals and short- run growth, appropriate allocation of corporate resources developing incentives for executives, and forming different tax strategies. Value-added performance measurement is a useful tool for such evaluations. It examines the intrinsic value of the company at certain intervals. Life insurance company values are based on capital and surplus which includes contingency reserves, the possible value of future profits and the value of a firm's chances to sell and administrate future business. An historical review of economic conditions in the industry is featured, with special concentration given to the inflationary conditions of the last decade. A sample summary report is included.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1984
User Contributions:
Comment about this article or add new information about this topic:
Accentuating the Positive
Article Abstract:
A major goal of any company is maximization of the value of that company. There are several strategies for this maximization. After a complete financial analysis, if the best course of action is not to make changes, then do nothing. Review changes in administrative procedures. Consider unilateral enhancement programs which automatically increase coverage. Explore bilateral updates which change policy terms. Study exchange programs which allow policyholders to exchange existing policies for a different product. The success of a program depends on training for company employees and easy access of needed information to policyholders.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1984
User Contributions:
Comment about this article or add new information about this topic:
Agency acquisition: the value of amortizing expiration lists
Article Abstract:
The depreciation of purchased insurance expirations was not allowed in court litigations before 1974 because of their immeasurability. However, the IRS passed Revenue Ruling 74-456 in 1974, explaining the procedure for amortizing expirations. Insurance agencies benefit from these rulings as illustrated by case studies. Alternatives to amortizing are also presented.
Publication Name: CPCU Journal
Subject: Insurance
ISSN: 0162-2706
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: B is for Baldrige. Facing the crisis. Around the clock
- Abstracts: The minority challenge. Raising the crossbar. 1992 viewed as critical to overseas expansion
- Abstracts: New plans, new policies. Manufacturing the future. High dental costs stoke voluntary coverage market
- Abstracts: The dangers of deregulation. Using deregulation to recharge the organization. Japanese step out cautiously down road to deregulation
- Abstracts: Intricacies of small cap investing. Stock investing: a time to globalize. Investors think small again