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The recent financial crisis has resulted in large losses
for the insurance industry. Industry conditions in the near
term remain tenuous, particularly as many companies will
continue to experience declining revenues, investment
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losses, and credit rating downgrades, which can affect an
insurer’s ability to repay debt by having to pay a higher
interest rate. Additionally, insurance companies that were
trading in credit default swaps and other risky instruments
without sufficient hedging suffered especially hard, and
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some companies even became insolvent. Companies with
prudent risk management strategies also suffered large
losses, because most investment instruments owned by
insurance companies experienced falling values as they
were being sold or marked down as the stock market
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deteriorated in late 2008. Nonetheless, as insurers rebuild
capital and adhere to stricter Federal regulations, the
insurance industry is likely to stabilize.
The Internet is an important tool for insurance carriers
in reaching potential and existing customers. Insurance
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carriers use the Internet to enable customers to access
online account and billing information, view insurance
quotes, and purchase policies.
Source: www.bls.gov (Adapted)
Jan 28th, 2010