Project

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Michael Dunlap

Prof. Goodwin

IRM 3304

October 5, 2015

[Title]

The unemployment rate is the a recent problem affecting the property-casualty insurance industry. Unemployment is the tendencyies of individuals to have no not have any income- generating activitiesy or work to do so as to generate income. Due to the fact that most aging groups today are college the graduates who haves recentlyjust completed their undergraduate level degrees and still have debts to pay, and most of them still stay live in their parents’ homes while looking for jobs or work to pay their debts. Comment by Lisa Coleman_DLA Editors_Proofers: APA and academic writing in general requires you to cite your information. When revising this, I recommend adding parenthetical citations to all your claims. Comment by Lisa Coleman_DLA Editors_Proofers: I cannot tell what you are saying with this description.

These decisions affect the property-casualty insurance industry as these individuals cannot be able to purchase their own houses, rent apartments, or even buy cars, which directly affects their needs for insurance. The main reason they cannot buy these types of these properties is such as cars is due to unaffordablebecause purchase prices, maintenance costs, and the fact that many can easily walk or get to their place by making use of public transportation or walking.

Unemployment is an important issue because it really affects the property ownership abilities,y and therefore, the property-casualty insurance industry may not be of any importance if people have no ability to insure their propertiesy. Suppose If every individual could behave been employed, it this wouldill give the insurance industryies more opportunities to cover different risks. People could buy houses ,and rent apartments and cars, which will eventually be insured. This makes unemployment a big major issue affecting the property-casualty insurance industry.

Also, unemployment results in low GDP per capita, which is highly positively correlated to insurance consumption. This hinders the consumers from purchasing insurance properties and most of the unemployed individuals will assume the cost of maintaining insurance policies. The demands of insurance tend to be very high in the areas of with a high cost of living since the employment rate is high there because most of the properties in such areas tend to be more valuable. Therefore, with an increased unemployment rate, the property-casualty insurance industry’s goal dreams to cover insurance risks will beare invalid.

The A dilemmas in this issue is the unknown timeframe of when anare when will this entire individual will gain employment. be employed? Actually no one knows the answer becauseThere is no definitive solution to this because the population keeps on increasing, making and less jobs available., Aalso, based on rise of corruption, experts speculate on the possibility of will these unemployed individuals bribingbe able to bribe the employers so as to get a job.? The effects are likely to be increasing, and this will look like a chain of impacts since the increase in population will lead to fewer jobs available and having less jobs will lead to the cycle of getting the same job. Therefore, the big largest issue problem will be directed to the property-casualty insurance industries companies that are questioning in dilemmas about when to make their sales to unemployed individuals. Comment by Lisa Coleman_DLA Editors_Proofers: The effects of what? Comment by Lisa Coleman_DLA Editors_Proofers: You need to clarify this point.

The Mmorals and ethics and ethical issues are construct businesses’ ways of conduct. These include honesty, integrity, and transparency. Based on these issues, the a business is viewed to provide equality for individuals in need of their services. These needs include employment and terms and conditions based on the work done. The issue of unemployment as an issue affecting property-casualty insurance industries in regards to moral and ethical issues is positively correlates because Athe business with stronggood moral and ethical terms will help in reducing the factors that leads to unemployment, which will create a positive increase in business for the property-casualty insurance industry. When the a business is transparent and , honest, the cases of corruption will not occur; therefore, be available and therefore every individual will be treated fairly and based on their performance., These individualsthey will eventually secure a job opportunity from this moral and ethical business.

AnSuppose am given the position of insurance company president and I really needing to eliminate the issue of unemployment may consider, the following alternative solutions. may include the following;

1. Creations Creating of more job opportunities forto new college graduates. Thisthe youth; this is by ensuring can ensure that most many of the individuals are given jobs in my the president’s own company. Sand since this president runs companies I will have created many companies all over the world, most youth young professionals will enjoy their employment opportunities in these companies. The president must I will first reduce the aging group in my his or her companies, who which contains employees who have established themselvethemselves, so as to provide job openings for give a chance for a younger generation. After Once the younger generation is employed, the president could then being employed I will urge themose to take purchase insurance, cover and some of them may have an opportunity to qualify fortake loans to achieve their valid dreams. Comment by Lisa Coleman_DLA Editors_Proofers: This term is still unclear.

2. Advocating for self-employment.; The president could I will use his or hermy campaign group to create awareness on of self-employment opportunities.s Tand those individuals who may have the capability to carry their own business and yet lauck the funds to start one may be given some loans to carry support them based on terms and conditions. One of the conditions is of this will be that he or /she must be secured and able to pay premiums to an insurance company.

3. Reducing prices of insurance properties.; The president couldI will ensure that most of the insurance options are properties are cheaply available to insurer. This includes cars, which can be easily be bought by low- earning groups and the unemployed, self-sustained group but they are self-sustained. Also, the president could reduceI will reduce the price of homeowners’ insurance so as to give the unemployed morale motivation to own houses and insure them.

4. Requesting that In conclusion I will link with the Mministry of Ffinance to help unemployed individuals by also allocating funds to them. Through this, the president will increase the encouragement of individuals to so as they can run their own businesses and apply for take insurance covers. This will help the insurance industry to make more sales on these properties and give individuals an open chance to operate on a risky business. Based on pricing, the president could I will reduce the price of payment for the property to the individuals who attempt to take insurance cover to their properties for the first time, as this will encourage more insurers to take part in the activities that require insurance cover.

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References

www.insurancejournal.com

http://www2.deloitte.com/us/en/pages/financial-services/articles/2015-property-and-casualty-insurance-outlook.html

Bradford, D. (2014). The economics of property-casualty insurance. Chicago, IL: University of Chicago Press.