Insurance overload threatens: underwriters seem to be creating more coverages than there are risk exposures
Article Abstract:
The insurance industry's prices are at an all time low and financial managers are prone to making the mistake of buying too much insurance. Jerry Miccolis of Tillinghast-Towers Perrin maintains that some companies are buying more insurance than they need because of low prices and it creates the danger of risk financing being substituted for sound risk management. Miccolis maintains that financial managers should not buy more insurance than they need since many new insurance products may be worthless in the long run.
Publication Name: Treasury & Risk Management
Subject: Business
ISSN: 1067-0432
Year: 1998
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Gathering currency exposure in one basket
Article Abstract:
Basket options are again gaining attraction as they are believed to be the least-cost method of currency hedging. Aimed at hedging a diminution in profits caused by an adverse currency exchange fluctuation, basket options are being used by many companies to hedge their overseas risk. However, aside from making firms forego the possibility of windfall profits from favorable currency fluctuations, basket options are also more difficult to adjust when changes occur during the course of the option.
Publication Name: Treasury & Risk Management
Subject: Business
ISSN: 1067-0432
Year: 1997
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Outmanned by fraud: how some self-insured companies are being hoodwinked when paying claims
Article Abstract:
Self-insured companies are also prone to fraudulent insurance claims yet most have not taken adequate steps to protect themselves from fraudulent claims. Self-insured companies often cannot pass on claims and so end up paying for the entire cost yet their fraud prevention measures have failed to measure up to industry standards. Self-insured companies should therefore plan for fraudulent claims and take steps similar to that being taken by large insurers.
Publication Name: Treasury & Risk Management
Subject: Business
ISSN: 1067-0432
Year: 1998
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