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Fixing a damaged market

Article Abstract:

The reinsurance market has been adversely affected by a number of man-made and natural disasters in recent years. These events have reduced the profitability of reinsurance significantly. To make matters worse, the industry's capacity to generate new capital is severely limited. As a result, disaster insurers must carefully evaluate existing business, developing more accurate indices of loss potential. Losses can be minimized by expanding portfolios interregionally and by lobbying for improved building codes, drainage systems and flood defense.

Management, Reinsurance

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Structured settlements: Panacea or placebo?

Article Abstract:

The growing incidence and size of liability suits favors the substitution of structured settlements for lump-sum distributions. The former relieves both defendant and plaintiff of the financial burden of the latter by spacing payments out over a period time. For plaintiffs, the primary advantages of the structured settlement are reduced taxes and the ability to manage the award better. For insurers, the primary disadvantages are long-term financial obligation and the difficulty of obtaining a reasonable settlement.

Economic aspects, Finance, Liability insurance, Structured settlements

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