HIH Insurance Case Study
HIH Insurance – Due to the high risky areas the company has incurred the following losses:
- The company has acquired the business of the FAI Insurance which is involved in the more risky business of the insurance. The company has incurred the considerable damage claims.
- The company has entered into the insurance of film financing services which has led to the loss of dollar hundred million in the year.
- Due to the insurance business in the field of natural disasters, the company has incurred the huge loss from the typhoon of Florida
- Due to sudden change in the compensation claims of the workers of California, the company is required to incur big amount of losses.
- The acquisition of business of FAI Insurance Company has been made …show more content…
It shows that the company has bad corporate governance.
- The above phrase is also solicited from the fact that the company has begun entering into the more risky areas like natural disasters, marine and the film financing insurances.
- The company has not carried out any due diligence before the acquisition and there has been continuous change in the key managerial personnel (Jiangbo, 2003).
- Mr Ray Williams was held with three charges – one for not serving the duties and the responsibilities of the directors, second for issuing the prospectus with material omission and third for overstating the profits for the Financial Year 1998-99 in the Annual Report of the company. One Tel Company
- The management of the company has been deferring its expenses over the next three years and the same has been verified by the auditor. It depicts that the company has low internal control system.
- The company’s strategy to charge the lesser amount from the customer in the view that it will be recovered is wrong and has been considered as futile. It affects the pricing strategy of the management of the
- The company has acquired the business of the FAI Insurance which is involved in the more risky business of the insurance. The company has incurred the considerable damage claims.
- The company has entered into the insurance of film financing services which has led to the loss of dollar hundred million in the year.
- Due to the insurance business in the field of natural disasters, the company has incurred the huge loss from the typhoon of Florida
- Due to sudden change in the compensation claims of the workers of California, the company is required to incur big amount of losses.
- The acquisition of business of FAI Insurance Company has been made …show more content…
It shows that the company has bad corporate governance.
- The above phrase is also solicited from the fact that the company has begun entering into the more risky areas like natural disasters, marine and the film financing insurances.
- The company has not carried out any due diligence before the acquisition and there has been continuous change in the key managerial personnel (Jiangbo, 2003).
- Mr Ray Williams was held with three charges – one for not serving the duties and the responsibilities of the directors, second for issuing the prospectus with material omission and third for overstating the profits for the Financial Year 1998-99 in the Annual Report of the company. One Tel Company
- The management of the company has been deferring its expenses over the next three years and the same has been verified by the auditor. It depicts that the company has low internal control system.
- The company’s strategy to charge the lesser amount from the customer in the view that it will be recovered is wrong and has been considered as futile. It affects the pricing strategy of the management of the