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New business structure offers tax benefits

Article Abstract:

Limited Liability Companies (LLC) are a viable alternative to other kinds of corporate structures because of the general liability protection and tax benefits they provide to their members. The LLC structure limits potential liability costs to amounts contributed by members to their business entity, protects active members and managers from personal liability, limits taxation of members to one requirement, and allows unrestricted freedom of business and member selection. However, LLC's face certain liabilities that may require independent coverage for members.

Methods, Limited liability companies, Insurance

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Seeking the perfect catastrophe index

Article Abstract:

The devastating effects of Hurricane Andrew and Iniki in 1992 on the property insurance and reinsurance industry has stimulated the popularity of insurance based securities such as catastrophe bonds. These bonds were later transformed into index-based catastrophe derivatives because some investors wanted to segregate catastrophe risks from operational risks. These catastrophe indexes include the Property Claims Services index, the Guy Carpenter Catastrophe Index and the Risk Management Solutions index.

Securities, Property and casualty insurance industry

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Using computer modeling to predict storm damage

Article Abstract:

Insurance companies can now avail themselves of computer modeling systems that allow them to predict insured property-casualty insurance losses from windstorms, including hurricanes. The systems are used to calculate potential windstorm damage at specific sites. The modeling systems enhance the management of insurance portfolios by boosting the efficacy of underwriting and of risk management procedures to control exposures to insured losses.

Software, Insurance industry, Hurricanes, Windstorm insurance

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