Homework Help: BUSINESS LAW

Posted by LEE on Tuesday, September 9, 2008 at 9:54am.

I am going to intoduce the collapse of HIH insurance...

The second case of the collapse of HIH insurance showed that the impact of that failure was not limited to shareholders and unsecured creditors, it also affected employees, policy holders and claimants under polices. HIH comprised several separate government–licensed insurance companies, including HIH Casualty and General Insurance Limited, FAI General Insurance Company Limited (FAI), CIC Insurance Limited (CIC) and World Marine and General Insurances Limited (WMG). When HIH collapsed in 2002, it represented the largest corporate collapse in Australian Corporate history. The fundamental problem was that HIH had been offering insurance at too low a price, and had not set aside enough capital to cover its future liabilities. This was exacerbated by management and due diligence failures, which led HIH to acquire other troubled insurance businesses at too high a price. (Elias 2001)

In addition, when HIH took over FAI Insurance, the Owner of FAI responded to allegations that the purchase price of his company was too high .It has emerged that HIH did not conduct due diligence on FAI, and instead relied on FAIs recently completed accounts. The acquisition of FAI was not HIHs only questionable business decision but also partly blamed on its international operations, particularly those in England and the US. The company chose a sector that has proved problematic for many market participants and that, as an emerging insurance sector, involved HIH in business practices and legal risks it did not fully understand. Therefore HIH get their pricing and reserving wrong in sectors that exhibit long tails of risk, such as workers compensation and professional indemnity.

is it make you sense?
my essay topic is unethical scandals in Australia

BUSINESS LAW - Writeacher, Tuesday, September 9, 2008 at 10:32am
If this is your introduction to a topic, why does your first sentence begin this way: "The second case of the collapse of HIH insurance..."

If I were reading this paper, I'd want to know who threw away the first page!!

??
BUSINESS LAW - Writeacher, Tuesday, September 9, 2008 at 1:01pm
Take a look at these:
http://leo.stcloudstate.edu/acadwrite/intro.html from http://leo.stcloudstate.edu/catalogue.html

http://grammar.ccc.commnet.edu/grammar/intros.htm from http://grammar.ccc.commnet.edu/grammar/

Answer this Question

Related Questions

BUSINESS LAW - The case of the collapse of HIH insurance also involved in ...
Heatlh - What monumental event occurred in the 1990s that had a significant ...
Home insurance - Another term that means the same thing as "insurance ...
home insurance - the type of life insurance often used as mortagage insurance is...
Career - What are the best ways to market a insurance and risk management ...
music - what is the function on health insurance? What is the functions of ...
Accounting - On April 1, 2009, the company paid an insurance company $5,000 for ...
medical insurance forms - please check my answer thanks When should you submit a...
home insurance - Disability insurance is designed to replace A.damaged property ...
Home Insurance - Disabilty insurance is desighned to replace : A : damaged ...

For Further Reading

First Name:
School Subject:
Answer: