The Crisis in the Property Insurance Industry
- Topics:
- Property
- Tags:
- Business Operations,
- Casualty Insurance,
- Casualty Insurance Company,
- Corporate Insurance,
- Insurance,
- Insurance Company,
- Property Insurance,
- RealtyVan.com
- Source:
- RealtyVan.com
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Overview: The property and casualty insurance industry is, just as any industry, in business to make a profit. This means that for any individual insurance company, the premium dollars received must equal the losses paid out, plus a margin for the cost of doing business and profit. It may not be economically feasible for a company to provide coverage which does not at least pay for itself. Nevertheless, consumers demand that property and casualty insurance companies provide coverage at rates "acceptable" to the consumer when doing so places these companies at financial risk. Article explains news story that illustrate the magnitude of the problem faced by the property and casualty insurance companies. Insurance firms have five methods of dealing with risk: acceptance, avoidance, reduction, pooling and transfer. It provide number of guiding principles which govern the actions that are taken by insurance companies.
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Format: HTML | Date: Jan 2003 | Pages: 1
