Tuesday, February 3, 2009

Winning strategy for 2009: insurance sector

As we discuss everytime in class, each firm has its own value and various methods of deriving revenue.
Insurance company whether it is Life/Health or P&C creates revenue through competitive pricing among the rivals.

We know that today, U.S economy is at recession.
With the individual income level flattening or declining, insurance industries are suffering.

Big part of revenue for insurance companies are functions of
Price
market segmentation
cash-flow-generation
the liquidity to its consumers( from consumers view)

However, analysts from various insurance companies are now experiencing the difficulties in arriving at proper forecasting due to the volatile market situation or economic instability.

Concentrating on having heavy risk management may create value in these type of situations and clear some of the anxieties among people.

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