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Time to review your insurance strategy: the cost of risk

Article Abstract:

British local governments are urged to reevaluate their risk insurance program. The need for an immediate and detailed examination of the cost of risk of local authorities resulted from Municipal Mutual Insurance's (MMI) decision to limit liability claims. MMI will cover only claims of local authorities amounting to 100,000 pounds sterling and higher. MMI is the chief provider of local government's liability insurance. Some points to consider in dealing with risk insurance management are presented.

Fire, marine, and casualty insurance, Cover Story, Risk (Insurance), Municipal Mutual Insurance Ltd.

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A new structure for managing investments

Article Abstract:

Lincolnshire, England has adopted the practice of employing investment advisers to manage pension trust investments. The practice, which originated in the US, allows a tactical asset manager to adjust fund investment positions in various asset classes, geographic areas and currencies based on derivatives from future contracts and options. This allows better accountability and establishes clear performance targets among fund managers. The process is also more cost effective and efficient.

Pension, health, and welfare funds, Investment advice, Investment advisers

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Overseas investment and currency risk

Article Abstract:

International investments involve currency risk factors. Local currency movements must be considered in overseas investment decisions. Currency risks can be minimized by hedging and concentrating portfolios in stock markets. On the other hand, these risks can be used as opportunities in diversifying assets in several countries, particularly those with strong currencies. Countries showing strong economic growth and with less volatile exchange rates are usually lucrative equity markets.

Analysis, Foreign investments, Hedging (Finance)

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