¶ … Investment Risk and the Insurance Cycle in the New Millennium," Charles Ruoff brings some very valid points regarding the insurance industry and investment risk to light. The paper is valuable and valid, as it points out the importance of investment diversification to eliminate unnecessary enterprise and asset risk. This paper will further expand upon these concepts and idea.
Ruoff points out in his article that there are many situations relative to the market and investing environment that directly affect the risk ratio for insurance companies. For example, he points out that during 1990 Executive Life Insurance Company "demonstrated the lack of liquidity in a portfolio dominated by junk bonds" (Ruoff, 2003). In the present market, as the article points out, the economy is faced with falling stock prices and default on bonds, which often result in insolvencies (Ruoff, 2003). The condition of the economy is constantly changing; as a result insurance companies need to be aware of market trends to make the most risk free decisions possible. Mr. Ruoff validates this point in his article, and indeed states that "there should not be a one size fits all strategy" related to investment objectives for insurance companies and providers.
In the past, insurance companies looked for different investment opportunities that would pose the least enterprise risk. Inherent...
This was because they were seeing one of their primary competitors (Travelers) merging with Citicorp (which created a juggernaut of: insurance, banking and brokerage activities). At which point, executives at AIG felt that in order to: maintain their dominance in the industry and offer new products they should become involved in similar activities. The difference was that they would grow the company by expanding into areas that were considered
Some of the older employees will however retire in the near future and they will have to be replaced. This will not only generate financial investments with the recruitment and training of new staff members, but it could also materialize in a failure to integrate and attract newer employees. To better explain, the process is difficult and tedious and a young candidate may not feel at ease with working
Rising Cost of Medical Malpractice: The Impact of Medical Insurance on Patients and Physicians The purpose of this study is to examine the extent to which rising medical malpractice premiums have affected the quality care provided by physicians. Research suggests that a majority of specialty practitioners are pulling out of practice because of rapidly rising medical insurance premiums. A majority of physicians are unable to pay premiums that are rising upwards
Investment Analysis Investing money for the future is one of the key components of creating a secure future, and retirement. While many Americans do not plan for future years, other then a company retirement plan and social security retirement benefits, research shows that when a person takes an active role in their retirement planning, they are more likely to create a future which will support their standard of living after they
Credit Risk Management Banks are an important part of the economy of any nation. Traditionally, the banks operate as financial intermediaries serving to satisfy the demand of people in need of various forms of financing. Through this, banks enable people to purchase home and businesses to expand. These financial institutions therefore facilitate investment and spending that are responsible for fueling the growth of the economy. In spite of their vital role
Northwestern Mutual Life Insurance Co Insurance business in modern day has adopted a differential approach to dealing with policy issues and consumer behavior yet some companies like Northwestern Mutual Life retain their original course of actions with clear mission and core values to provide exceptional service to their consumers. The following report is an analysis of such exceptional quality and distinguishable positioning of the company. Whether one is a business entity, a
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now