Article Abstract:
The underwriting results for Japanese and non-Japanese insurance companies is analyzed, proposed legislation on product liability is debated, and Japan's decision to allow banks to sell insurance is discussed. Japanese non-life insurers underwrote $62.8 billion in premiums compared to foreign insurers who wrote $1.8 billion. Opponents of product liability rules state that production costs and claims will increase while supporters believe consumers need protection. The Japanese Ministry of Finance allows banks to sell insurance products on their own property.
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Article Abstract:
The risk-based capital standards proposed by the National Assn of Insurance Commissioners may provide only some protection against insolvency. The standards could also lead to major changes in the insurance market. Some insurers could be identified as being undercapitalized, even when they are financially sound. The standards could make some types of risk financing less attractive and cause shortages of certain insurance services. Regulators should evaluate market implications before adopting these standards.
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Article Abstract:
Some insurance companies believe that 24-hour coverage would help slow the financial drain caused by workers' compensation claims. Such claims hurt businesses and have cost insurers $11 billion from 1985 to 1993. Critics of 24-hour coverage feel that other cost-containment strategies, such as preferred provider organizations and fee schedules, would be more effective. Additionally, professionals in risk management and human resources still have doubts that 24-hour coverage is a good benefits strategy.
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