Regulating at a snail's pace

Article Abstract:

Consumer and government confidence in the insurance industry is dropping due to the many troubled companies. Regulatory commissions are not responding soon enough to struggling insurance companies. These commissions must attend to the insurance companies' problems quickly so that the management of the insurance company can be restructured or capital can be infused into the company. State regulatory commissions should also consider sharing insurance company financial information with other states to reduce the chance of a multistate problem.

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$2 trillion and counting

Article Abstract:

Revenues from direct insurance premiums in 1995 reached $2,134.4 billion worldwide, exceeding $2 trillion for the first time. More than 90% of the total volume were from industrialized countries with Japan and the US contributing almost 30% each. France, Germany and Great Britain contributed over 5% each and eight other countries contributed slightly over 1% each. The use of life insurance as a financial investment and for future financial security was a primary factor in insurance penetration.

Insurance, Insurance Carriers and Related Activities, Evaluation, Statistics, Life insurance

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RBC technical overview

Article Abstract:

The Life Risk-Based Capital Working Group's Industry Advisory Committee has proposed a risk-based capital (RBC) model for insurers. The model is similar to those used by insurance departments in Minnesota and New York. The RBC formula is the percentage of surplus of an insurer divided by the individual RBC components' required capital. The formula makes a covariance adjustment that takes into consideration the exclusive conditions that occur in the classification of risks.

Models, Capital assets

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