Abstracts » Insurance

The origins of the problem

Article Abstract:

The current problems in market conduct within the insurance company have their origins in the 1980s, when clients were constantly churned in and out of products as they were enhanced or changed in some way. The interest rate environment of the 1990s has invalidated many assumptions of that time, and insurers need to reevaluate their marketing tactics. Companies must begin by emphasizing ethical behavior over the demand for statistical production.

Management, Marketing, Business ethics

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Under pressure, but under control

Article Abstract:

An insurance company's investments should be evaluated in relation to the company's investment technique and ability rather than evaluated by the particular instrument, such as derivatives or mortgage-backed securities, chosen. The insurance company's solvency, management capabilities and debts should also be analyzed. Investments in quality products may not provide the rapid increase in profits that a riskier product might.

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Bond portfolios beefed up in 1994

Article Abstract:

Lifer and health insurance companies have increased the size of their bond portfolios in 1994, partly as a result of laws which require these companies to hold a selection of their assets in low-yield and low risk securities and issues. Consolidates assets rose 6.8% in 1994 to $1.924 trillion. Bonds returned 7.6% in 1994, and their asset share grew to 54.7% of total assets.

Finance, Bond funds

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