Analysing HIH's recent events
On March 15, 2001, Australia¡¯s second largest insurance company HIH collapsed and an application for its liquidation was submitted. It soon escalated into Australia¡¯s biggest corporate failure in June after the insurer¡¯s final tally of losses was estimated to be about $3 billion in Australia and almost $5 billion worldwide, very well above the early estimate of $1 billion . HIH¡¯s demise was mainly due to the criminal and unethical activities that the company directors committed, as well as risk management practices and poor decision-making. As a result, most HIH¡¯s creditors, policyholders, shareholders, employees and many other businesses and departments, who are innocent victims, have been enormously affected.In the early 1990s, HIH quickly expended business overseas through the Europe and the United States. However, it did not have the control in place. HIH started to reinsure from 1997 and it had been accepting too many risky insurance claims from other insurance companies. Thus, it did not set aside enough capital to pay out over a number of years to policyholders. For example, HIH paid couples of hundred million dollars to cover workers compensation in California by raising its premium rates in another countries. Mea
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Some common words found in the essay are:
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Approximate Word count = 1250
Approximate Pages = 5 (250 words per page double spaced)
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