Bridge over ocean
1 May 2003 Financial Analysts Journal Volume 59, Issue 3

Is the Insurance Business Viable?

  1. Robert Ferguson
  2. Dean Leistikow
  3. John R. Powers

The insurance business is fraught with problems for which, in many insurance lines, a solution that is acceptable to consumers and leaves the insurance business viable is not likely. We analyze the factors that create this situation. Consumers often view economically viable premiums as too high. In these cases, the tendency of private insurers is to abandon those lines to avoid failure. Pressure then mounts for government to provide insurance at “affordable” premiums or for government to force the insurance companies to do so. The results of the availability of such affordable insurance are not in consumers' interests.

Read the Complete Article in Financial Analysts Journal Financial Analysts Journal CFA Institute Member Content

We’re using cookies, but you can turn them off in Privacy Settings.  Otherwise, you are agreeing to our use of cookies.  Accepting cookies does not mean that we are collecting personal data. Learn more in our Privacy Policy.