Cashflow survey: insurance hits financial agenda

Article Abstract:

A survey of 200 chief financial officers, conducted by Cashflow magazine, indicates that 60 percent of the responding controllers and financial managers are becoming involved with insurance purchasing decisions for their corporations. This increased involvement reflects rising insurance costs; liability insurance premiums for companies have increased 300 to 400 percent. Treasurers at middle-market firms are most frequently involved with insurance purchasing decisions, although smaller firms and large corporations are also more apt to enlist the aid of controllers to help hold down insurance costs. The survey also revealed that companies are more carefully scrutinizing insurance claims to ensure claimants are not 'doubling-up' and costs being reimbursed are realistic, and that companies are beginning to use self-insurance schemes more often.

Services, Controllership

---

Insurance solutions: hard times

Article Abstract:

Cash flow underwriting has depleted insurance company reserves, caused some insurance carriers to go out of business, and raised the rates for corporate insurance. The U.S. courts' practice of granting large product liability losses, as in the case of asbestos-caused illnesses and diseases, has added to the financial strain in the insurance industry. Management of 'long-tail' risks, from an insurance company viewpoint, and its effect on business in general are discussed, as are the insurance concepts of 'spreading the risk', 'piece together' coverage, 'risk pooling', and other forms of loss control.

Life insurance, Hospital and medical service plans, Fire, marine, and casualty insurance, Accident and health insurance, Risk (Economics), Risk management

---

Concentrate more on insurance solutions and less on explanations

Article Abstract:

Rising insurance costs are affecting the employment status of corporate risk managers. To ensure their position with their employers, risk managers are advised to review for and devise loss-control activities, reassess deductible levels on insurance policies, review insurance policy payment plans, and consider self-insurance techniques as cost-saving devices. A strong working relationship with the insurance broker can greatly facilitate the corporate risk manager's ability to save his company money in the insurance area.

column

Similar abstracts:

• Abstracts: Africa - Up for Financing: Sub-Saharan Projects. Financial software crowds into consolidation space. California contorts project finance
• Abstracts: Investment and financial planning. IRAs and retirement planning. Retirement planning
• Abstracts: Financial reporting problems: solutions via reform. Good stewardship and the ASB's objectives. Towards a system of inflation accounting
• Abstracts: Approximate factor structures: interpretations and implications for empirical tests. The persistence of mutual fund performance
• Abstracts: An outside investment firm may increase yields on short-term extra cash. Tradition reigns in cash management, survey says

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.