Insurance

Posted: December 10th, 2013

Question 1: (15 points) -until one print page
The insurance world is divided into two major fields: life insurance and general insurance, explain of what led them to split it. Also analyze the background of the decision.
Question 2: (15 points) – until one print page
In recent years, the insurance market is characterized by many mergers between insurance companies. Name three advantages and three disadvantages of this phenomenon. Explain and give examples.
Question 3: (10 points) – until one print page
Reinsurance companies take on a different risk. Explain in details how each one of the ways described below helps neutralizing the risk.
a. Compensation over time (hint – a period of years).
b. Compensation by geographic diversification.
c. Compensation by industry diversification.