An analyst's view of insurance insolvency
Article Abstract:
The insurance industry has been considered in the same poor condition as banks and savings and loans, but the industry is much more secure with a one to 100 failure rate in comparison to a one to 75 for banks and a one to 10 for thrifts. However, the main problem for the insurance industry in 1991 was loss of consumer confidence, requiring premature cashing of investments as consumers redeemed their polices. In general, the insurance industry assets are well diversified and secure, giving insurance companies low risk profiles.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1992
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Market discipline and the financial strength of life insurance companies
Article Abstract:
Life insurance companies are not protected by federal insurance and are subject to market fluxes such as those in the real estate market. However, these companies are formed around risk management which carries over into their investments and are streamlined by market pressures that require efficiency. Life insurance companies are supported by their customers' belief in their financial security which also influences their investments, working with the other factors to make most companies financially strong.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1993
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The impact of AIDS on the insurance industry
Article Abstract:
AIDS is threatening the insurance industry from a social, political and economic standpoint. Insurers are concerned about the necessity of increasing their premiums, and they are conducting AIDS tests to determine applicants' eligibility. The industry is educating the public about the need for risk classification to lower costs and provide coverage to more people. The downsizing of insurance firms and the unpredictability of AIDS are restricting the industry's responsiveness.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
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