Threats and Opportunities for Insurance Companies

Threats and Opportunities for Insurance Companies Climate change has become one of the most important aspects of our daily lives as it has a deep impact on our systems and the general well being of humanity. Such unprecedented change in the climate has resulted in extreme catastrophes such as hurricanes, floods, wild fires, etc. The loss caused by such accidents is not limited to the general public, but is further passed on to industry, which thrives on the concept of underwriting assets. The industries core belief is to quantify the uncertainty of an unforeseen event. But as these events are growing in frequency and size, it will continue to challenge the sustainability of insurance companies. Inevitably, it will transfer the burden to the insurance purchaser, as insurance companies will seek higher premiums for their products, which will only make it less affordable for the masses to afford essential insurance coverage. In this essay we will discuss the various challenges that the industry faces due to climate change, the possible ways to mitigate the threats, and then the scope of more opportunities arising out of the given change. Climate change can be seen as a threat to many insurance companies in the long term as well as the short term. IPCC (2007) has confirmed an increase in the frequency of the catastrophe in the recent years. Insurance claims running into billions of dollars can cause a huge dent in this industry, which makes up up-to 10% of the US economy. It is only natural for insurance companies to charge higher premium for those asserts. Which are exposed to high risks, making it less affordable to the market. The chairman of Lloyds of London quoted that climate change is the number- one issue for that massive insurance group. And also Europes largest insurer, Allianz, stated climate change stands to increase insured losses from extreme events in an average year by 37% within just a decade (Hawker, 2007,p.28). In the past, insurance companies have relied on previous data to formulate policies. But such a practice has only caused high losses as the climate is changing in a rapid way. Warren buffet pointed out insurance companies cant simply extrapolate past experience. If there is a is truly global warming, for example, the odds would shift, since tiny changes in atmospheric conditions can produce momentous changes in weather patterns'. Therefore new techniques such as risk management system (RMS) are used extensively by insurance industry for assessing and managing risks. Hurricane Andrew caused a loss of $23 billion to insurers as they based their policies after relying on past data. However, the same industry had a much smaller impact when hurricane hit the US coast in 20004 and 2005, as they used future risk models such as RMS to formulate policies (Herweiger et. al., 2009). Climate change leads to increase damage and costs as ever increasing level and long lasting wildfires are causing more claims and property damages. Such frequency and magnitude of potential losses can jeopardize the solvency of insurance and reinsurance companies. Sustainability can be insured if the given threats are dealt with adequately. Insurance industries have a history of fostering practices and technologies to reduce risks. Some of the possible and effective ways to mitigate risks are, firstly, a lesser premium can be charged from customers of motor insurance who drive hybrid cars or use pay as you drive scheme. Special benefits can be given to customers who buy vehicles jointly to use them under car pool system. Secondly, a close association with government agencies to improve land use planning, better management of forestry agriculture and wet lands can help in having a well balanced growth that does not put to much pressure on natural resources. Collaboration with private builders to promote, improved building codes, which insure minimum damage to the environment, lower energy requirements and long-term durability. Thirdly, building awareness amongst clients and formulation of public policy. Companies can provide information and edu cation to customers about the harmful effects of violating laws of nature. Consultation should be given to primary and secondary industry to reduce their impact on their immediate environment. . Many insurers have already made investments in green projects like renewable energy, energy efficiency, forestry projects and green funds to ensure that their customers receive protection and also saving them from large claims (Mills, 2007,p.7). Promotion of voluntary energy saving and energy efficient codes can help reduce our dependence on state electrical supply. Active participation from insurers such as AIG offer its Private Client Group a service in which crews are deployed to apply fire retardant in areas such as Colorado which are threatened by wildfire. Climate change can prove as a very big opportunity for insurers as the unpredictable climate can threaten their customers and lead them to insuring their assets. However they must adapt timely successfully. Responding to change is important as it brings opportunities. Insurance companies should develop new solutions and introduce insurance of new assets and risks for their customers changing needs. It is also seen that the Insurance industry is in constant search of better returns for its vast investments. In this regard it could take advantage of the opportunities available in alternative energy sources as it is a good investment as constant technological developments make this it more affordable and attractive for the public. Introducing new products such as risk based pricing under which insurance premiums are charged as per their risk exposure. For normal policies, premium is charged by keeping various factors in hand, but the premium is standard for all, no consideration is given to a policy holders risk exposure. For example- buying car insurance in UK, Any individual above the age of 21 is charged a basic insurance premium which is more or less standard. However when it comes to providing insurance cover to an individual below the age of 21, the policy premium is charged at a much higher rate, as the possibility of an accident is much higher as these new drivers are mostly inexperienced. Another opportunity comes from state help, in form of promotion, because If the majority of the population do not insure their properties then in case of a catastrophe, the financial burden will fall on the state insurers, so to save from this burden, governments promote and favour private insurance companies. Thus making it profitable for private insurers as well as the government. Some of the possible ways to tap the available opportunity are firstly by energy saving insurance, which is given to promoters of energy efficient projects to protect them from loss due to underachievement of predicted energy efficiency. Secondly by motor insurance where packages such as pay as you drive insurance are given, in which cover is given for the miles driven. This helps to reduce miles driven by 10 % to 15 % and also reduces accidents. Thirdly by green building insurance, insurance schemes for buildings that comply with green, eco friendly codes. Fourthly by micro insurance, where the majority of the population living below poverty line, cannot afford insurance of any sort. Therefore new packages for this section of the society can help to capture a very large customer base. Fifthly by investing in alternate energy sources As they can help to get a much higher returns to the surplus investable capital of insurance companies, as this sector holds great promise for better, cleaner greener energy, through technological innovations. And lastly by improved identification of flood plains will help to promote insurance purchasing in the marked areas. After exploring the implications of climate change on the insurance industry, I have shown above, the threats opportunities that the insurance companies face. By comparing both sides of the argument, I believe that the insurance industry faces more threats than opportunities due to climate change. An ever-increasing catastrophe rate, sparked by excessive climate change has lead to increased financial losses, reduced customer base in some case cases complete wipe out of companies. Therefore it is only right for these companies to mitigate these risks in order to insure sustainability. In the given scenario, there also exist enough opportunities to develop new business models and increase revenue through new policies, revised competitive rates. Many untapped market segments, which remain untouched by industry, can provide high revenues. Adequate investments in research and technology will be beneficial for the industry. Above all, a close association with the general public, government agencies private sector enterprise will help the insurance industry to protect itself from the dangers of climate change and provide sufficient opportunity to grow in size.

Hiring an Employee for Secretary Position Essay

Hiring an employee for secretary positions It is always a better idea to implement the specific process to hire an employee. Hiring department has developed series of process to begin the search and hire three desired candidate for the empty secretary positions. This will include distribution of application forms, understanding policies of hiring and conduction of interviews. I am reporting on me and my department’s role. My main role is to ensure the process has been followed in correct manner to hire the right person for this position. Our first significant step is to understand policies and procedures. Our application form will be available in our company’s official website. We make sure that every applicant are treated equal, there is no discrimination for employment in terms of race, color, national, origin, sex, religion, age, veteran status, sexual orientation or disability. The applications are reviewed to find the candidate with desired qualification for this position i. e. graduate degree in management from the university and outgoing positive personality with true passion of work. They will be called for the first interview. We have created certain questionnaire to ensure we get required information from the candidate. After this, we will hold a meeting to select most desired ten candidates. Then they will be called for second interview. Out of ten we will choose three for the position. Our department were discussing about providing one week training on application of our latest company software. We saw that employees took time to get used to the software when we updated it. So, it will be beneficial that new employees will have knowledge about it and can start the job right away without any hindrances. We are glad to let you know our procedures to hire employees. We are waiting for your approval so that we can start this process as soon as possible.

When should we trust our senses to give us truth?

In order to answer the question about when we should trust our senses to deliver us the truth, it is important to first understand our senses. Primarily, our senses serves as a jump point of our awareness or our consciousness, as it takes the form of an inner entity within us, somehow becoming a guide for our actions. We perceive our senses as a truth detector, which again goes back to how it guides our actions. For most of us, we consider our senses as a much more reliable truth detector compared to our emotions, as it can often deceive us and possibly lead us to our demise. These senses are able to relay to us whether something is right or wrong, or may be unfit for a situation. Further defining it, I could personally say that it is an instinct, an innate ability, which helps or leads us to perceive the world we live in, including the existence of things and the occurrences of events that may or may not matter to us. We have these five human senses, which include sight, hearing, touch, smell, and taste. All or some of these senses are present in human beings, and these are very useful in their day to day activities. Our senses enable us to act normally, or even to respond accordingly to whatever predicament we are facing. Our senses are essential in decision making in all of the situations that we may encounter. We synthesize the inputs of our sensory organs and use it to determine what course of action we should take. But still, there are some uncertainties regarding our senses. In a situation where a person sees a car coming when he decides to cross the road at a certain time, how will he be able to tell if what he is seeing with his eyes, what he is hearing with his ears, or how the wind feels in his skin, is really the truth? How can he be so sure that the image or idea that is formed in his head is the reality, and that his senses are not lying to him? In this split second, how will he decide? Should he trust his senses or just ignore them? In the end, it is still up to the person to decide on what course of action he will take, as it is essential to trust ones senses on delivering the truth about a certain event or entity. In order to gauge if we can really trust our senses, we need to lay down certain considerations that we have to follow. One way is to understand the effect of one’s previous knowledge, understanding, and experience, the completeness of one’s senses (whether or not you have all five senses), the presence and the effect of mental illness to one’s judgment and decision making, the usual interpretations of one’s senses, and finally, the accepted norms of the society that one person belongs to. All these considerations have to be understood, as it is essential in understanding whether or not our senses can be trusted to deliver us the truth. Initially, we have to gauge our previous knowledge, understanding, and experience, in relation to using our senses. We could ask ourselves if there are any situations or occurrences that our senses have failed us. We should determine how it has failed us, and what its effect to us is. We should also determine the situation wherein our senses accurately perceived events or objects, and use this to compare on the instances it has failed us. By basing on this previous knowledge, we can see the importance of the stored information that we have generated from the past. This old information will be used to create a new one, and that would be our understanding of our senses, whether they are unreliable or not. If we are able to tell several instances which the senses have failed us, then we start to construct an understanding that at these situations, our senses may not be enough in order to determine the truth. At this point, we start to create a knowledge that tells us how hard it is to perceive an event or an entity with our senses that we possess. One practical example of this is when we need to use the microscope. Before we know about the existence of microorganism unseen to the naked eye, we have a mindset that the world is what is there to see. Our previous knowledge tells us of how surfaces of rocks, soil and other places look like, but with the use of the microscope, we are able to establish a new knowledge about microorganisms that we cannot see with our eyes alone. Our ears are also unable to detect sounds outside the range of our perceivable or tolerable wavelengths. However, we are able to do so with certain devices, and we are even able to put this into practical use, and one example is our use of SONAR. In relation to this information, we would go back to another criterion in gauging the truthfulness of what our senses perceive. This is whether or not one person has complete or incomplete senses. If we look closely at this idea, we become clear to the fact that there are a lot of people living in this world without complete senses, but despite their incompleteness, they are still able to function normally, and that predicament tend to work for them. This is not only a case of faulty functioning sense, but the absence of a sense (or senses). Despite this, they are able to live their lives like people with complete senses do, and this is made possible by their remaining senses. Looking at this in a knowledge standpoint, we may say that they were able to learn how to live even when they lack a certain sense. For a blind man, perception is not limited to the eyes alone, and he is able to navigate his way in the world with the use of his hearing or smelling. They learn to use their remaining senses in different ways, and that enables them to live normal lives. The knowledge that they gain from using their remaining senses becomes different from the knowledge that they gain when they have complete senses. In a way, they are able to fully trust their remaining senses because it’s what they have. Somehow, they were able to hone those senses in a manner that they perceive things accurately, and without failure. Let’s compare a normal person and a blind person when they wait for a train. A normal person relies on a combination of his senses, sight and hearing, in order to determine if the train is already near. He can look far back into the rail and see any hint of the train coming, couple with hearing of the increasing train sound. On the other hand, a blind man would solely rely on his sense of hearing to determine if the train is coming. He could concentrate on the distinct sound that a train makes upon its arrival. The blind man may only rely on hearing in order to determine the train’s arrival, but this doesn’t mean that it is a disadvantage. Even with his sole sense, he can concentrate on the distinct sound made by the train, and it hones his sense of hearing, so that he can accurately perceive the train’s arrival. On the other hand, a man with both sight and hearing could hear and see the train when it arrives, but he may be distracted by one sense and lose concentration of accurately determining its presence. Suffice to say, the presence or absence of any sense does not necessarily mean a diminished understanding of the world a person lives in. The knowledge that he gains with the presence of absence of a sense may vary, but still, he is able to fully understand it, and be able to form his own construct of what is the truth. Another criterion would be the presence and the effects of mental illness to a person’s judgment and decision making. With this criterion, we determine if a person is affected by other things other than his senses in the things that they perceive. Certain cases of mental illness may result to perceiving events or entities which are not real, and are only created by one person’s mind, as a result of his mental illness. If this is the case, then the integrity of what he perceives through his senses is jeopardized. Something that may be non-existent in real life may exist in one’s own perception. This doesn’t mean that he has heightened senses, instead it means that he has a problem, which needs to address in a different manner. This case is also similar to when a person consumes substances that may alter his perception of things. Illicit drugs can often result to hallucinations, but this doesn’t mean that what they may see or experience is real. There is actually no knowledge created in this case, as it invokes the mind to have false perceptions, instead of actually seeing the reality. There is no truth in what the senses may perceive, since it is the person’s mind that creates these images or occurrences that he is having. Our senses are really important in order for us to function fully in our lives. However, there are certain instances that may affect what we perceive with these senses, thus jeopardizing the integrity of what we perceive. Because of this, the knowledge that we create in relation to these senses (their presence or absence) may vary, depending on the situation. Trusting theses senses and understanding their faults are equally important in knowing whether or not they give us the truth. When Should We Trust Our Senses to Give Us Truth Our senses help us interact with the world. Smell, hearing, sight, taste, touch, and external stimulus play a major role in shaping our perceptions of the surroundings and the world. To trust our senses means that we have justified belief of what we perceive is â€Å"true†. To what extent can our senses give us truth? In order to obtain a better understanding of under what conditions we can rely on our senses, we need to compare circumstances where they have most been true with circumstances where they most have not. We appear to rely on our senses in order to perceive the truth in terms of the world and the surroundings. Senses are the representation of reality, we can perceive that there is an apple on the table by touching or seeing it through motor and sensory neurons and electromagnetic rays. Also, senses play a significant role in surviving. A keen sense of smell allows animals to run away from predators and allocate food, similarly, a good eye-sight allows us to see what is going on around us and helps us get familiar with the surroundings in order to adapt. In 2004, many animals such as elephants and flamingos escaped the tsunami in Sri Lanka and India, the animals â€Å"predicted† the coming disaster as they may have more acute sense of hearing or touch which allows them to feel the strong vibration of the Earth. On the other hand, our senses can easily be deceived. Advertisements on TV and internet tell us how great a product is and encourage us to buy it, however, the truth may be that the actual product is not as effective as it seems to be. I bought a shampoo because on the advertisement it said that it can moisturize my hair and make my hair look shiny, and the hair of the model in the advertisement looked pretty which made me want to look like her. However, when I actually used it, it did not have all the effects that were described and my hair still looked the same. Magic performance is successful because of its deception of our senses. Once during a magic show, I saw the performer cut a lady in half but the lady was still alive. The truth is that the performer did not cut the lady, the lady appeared to be in half because of the information that my sense of sight sent. Senses can be misleading because they may only show one side of the situation, unless more senses work togerther and we reasoning the information we get from our senses, we cannot reach the truth. However, we still may not get the truth even if we reason or our senses work together. Different people perceive differently. Blind people do not have their sense of sight so they cannot know that an apple is red but they may have stronger senses of hearing and touch than normal people. It is also understood that emotion affects our perception of truth. I like fast food and therefore I perceive fast food as delicious food and have affection for it, but my mom hates fast food and therefore she sees it disgusting. Despite the problems our senses may cause, they still play a significant role in our areas of knowledge. Evolutionarily, we trusted our sense. According to Charles Darwin’s natural selection theory, the strongest will survive and the weakest will die. Men select the best looking women and women select the strongest looking man. Although the this pattern has now changed, men are still generally attracted to good looking women and women choose men that they feel being safe with. Scientifically, scientists need to observe the phenomenon and conduct experiments through their senses first and then make theories by reasoning. Our senses are limited. We see only a tiny part of reality as we can only see the visible spectrum of the whole electromagnetic spectrum and the things we see are our representation of them. As Hermann von Helmholtz argues, we convert the image we see through our eyes into something that makes sense base on our prior knowledge and experience. The optical illusions created by Hermann and Lingelbach supported Helmholtz’s idea because we have difficulty to see images composed of lines due to limitation in our optical sense. As philosopher Rene Descarte says that â€Å"the senses deceive from time to time, and it is prudent never to trust wholly those who have deceived us even once†, our senses indeed can be fallible and limited, but we need them to interact with the world. So let us just follow our senses and live in the world our senses provide us.

Epidemic of Obesity in Our Children - 2399 Words

Obesity in Our Children Introduction In today’s ever changing world is important to understand the statistics behind obesity. Today the number of children that are overweight continues to increase. â€Å"The percentage of overweight children in the United States is alarming, with one out of three now considered either overweight or obese† Nemours (2012). The weight of our children can be a reflection of the parents. The Body Mass Index is important for parents to understand and assist children in monitoring weight and exercise habits. In today’s education of health, the BMI calculator is taught so that children can understand where they fall in categorical measurements. Obesity the Epidemic According to (Nemours, 2012), â€Å"Children fall†¦show more content†¦They may also see the cafeteria were children are eating large amounts of food that are excessive for a child of that age. Surveyors may be alarmed to see the variables that impact more obese children per capita in rural areas compared to metro areas. Collecting Statistics In rural areas it would be simpler to gather the information needed to complete the statistical analysis to give more accurate statistical reporting. When looking at a school district of 1,900 students it would be easier to complete an accurate survey than looking at a metro school district of 10,000 students. The ease of the survey would be improved by better and more accurate technology that is easier for the researcher to collect and analyze. This new technology would also allow students to reply their answers over the internet making the survey feel as if it is more anonymous. The more comfort that students have in their personal anonymity the more likely they will answer the questions in a more open and honest manner. With more in depth research the students were asked how many had computers with internet access at home. 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