Price cutting gives way to coverage expansion

Article Abstract:

Companies that resorted to price cutting due to the competition in the property and casualty industry in recent years' are now increasingly able to offer their customers value-added products and services. Insurers are advised to continually develop new techniques, such as managed-care service and finite reinsurance, to satisfy customers' needs, thus maintaining a strong market presence. Companies are also warned of the business risks and uncertainty accompanying untested services and products, such as products under the 'Year 2000' coverage which will affect computer systems at the turn of the century.

Property & Liability Insurance, Surety insurance, Cost Control Techniques, Analysis, Year 2000 transition (Computers), Market share, Cost control, Price cutting

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Rethinking the pollution exclusion

Article Abstract:

The controversial 'pollution exclusion' conceived by the insurance industry needs revision. The exclusions are so broad that environmental damage need not occur. Distinctions between property damage and excluded cleanup costs also remain ambiguous. Since no pollution exclusion is suitable to all, proper underwriting should be guided by three broad categories of risks classified according to frequency and severity of exposures.

Insurance carriers, not elsewhere classified, Insurance NEC, Other Direct Insurance (except Life, Health, and Medical) Carriers, Property & Liability NEC, Evaluation, Insurance, Pollution liability insurance

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Priced to move

Article Abstract:

Some 400 US car dealers adapt the 'producer owned reinsurance company' (PORC) financial arrangement to double the profits on every vehicle sold. Under this scheme, a car dealer sells a credit life and disability insurance policy to a customer who is financing the purchase. After the insurer deducts all the fees, insurance and other claims and expenses, the balance of the premiums is given to the PORC where it earns interest.

Fire, marine, and casualty insurance, Auto Insurance, Finance, Automobile dealers, Automobile insurance

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