1) Consider a business strategy for the perfect P&C personal lines company. What do you think a company needs to succeed in 2022 and beyond? Perhaps pointing to something you like or don’t like about a particular company might be helpful, but this is not about your preferences—this about accomplishing goals.
2) Consider all of the risks and external forces acting on a P&C insurer’s financial management and the tools to manage those risks and forces. List five of the most important risks and/or forces (there are no exact five, but regulators would certainly be one) and explain how each one would affect the financial management of the company.
3) Think about how an insurance company chooses its risks (both assets and liabilities). Explain the underwriting process and how insurers and banks operate in similar ways in taking risks in search of profit. This is not an easy question to answer completely in four pages so be careful.
Sample Solution