The failure of insurance companies (slides)

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The Fire, Auto and Marine Insurance Company (FAM). Independent insurance company independent insurance (various newspaper quotes). Premiums '50% below mark' in insurance scandal. Will you be hit by the independent debacle? FSA `derelict' in its duty over insurer. Breathtaking lack of help for insurance victims. Has anything changed? Why bother about failure? The public's attitude to insurance. The healthy being dragged down by the sick. Increased regulation. Failure costs everybody money! Why do insurance companies become insolvent? Reasons for failure: Catastrophes. High exposure. Actual exposure was unknown. Exposure known but risk taken anyway. Event unforeseen. Reinsurance failure. Cashflow problems. Reasons for failure: Rapid expansion. Large volumes of unprofitable business. Infrastructure problems. Poor information on the extent of the losses. Outsourcing. Most parts of an insurance company can be outsourced. Poor management of the outsourcing can cause problems.