In January of 2007 Florida passed a new insurance bill hoping to lower property insurance costs. Although this bill lowers insurance costs for Florida residents, if a catastrophic hurricane hit, it could cost the state billions of dollars just to recover.

The bill was passed to cut the enormous increase in cost of home insurance for people in Florida since 2004 and 2005 after suffering from the damaging hurricanes they have had, especially those who live on the shorelines. Many have experienced, not just double the cost, but some have even seen triple the cost of home insurance.

Although this bill will provide a large number of home owners some relief, how much relief still remains unanswered. It is estimated that anywhere from 5 percent for many inland customers to 20 percent for others will benefit from the bill, particularly those on the shore. However, it has not yet been determined when residents will start seeing a savings from this bill.

With this bill now in place, private insurance companies have more state backup insurance, which in turn will lower the rates for consumers. The state will now be taking the majority of the responsibility to pay out the Hurricane Catastrophe Fund in the event of a damaging storm; in effect the insurer’s risk is greatly reduced. This ultimately means there is no need for insurance companies to raise rates on consumers.

Since the backup coverage for insurance companies will now be cheaper than the private reinsurance that the majority of companies purchase, it instantly cuts one of their largest costs, which is ultimately passed on to consumers.

Consumers are also able to change their coverage under this bill. However if homeowners still owe a mortgage on their home there’s a very strong possibility that many of the changes won’t be available to them since mortgage lenders usually have requirements for home coverage.

Yet, how many people are comfortable with this bill? According to a recent poll done by Quinnipiac University from January 29th, 2007 through February 4th, 2007, it seemingly appears that a majority approves of this bill. Sixty-two percent of the Florida population approves of this new bill, while 14% disapprove and 24% have no opinion either way.

All in all, this bill was designed to keep money in the pockets of Florida residents instead of in the pockets of insurance agencies. Over the next year, we’ll be able to see if this bill is really a Florida resident’s dream come true or a political blunder that will cost taxpayers money.

The world of 1868, when the Metropolitan Life Insurance Company was born, was very different from the world we know today. There were no telephones in those days and no electric lights. The country had not yet been spanned by a transcontinental railroad. Records were kept in handwritten ledgers, and business letters were penned in longhand. The entire population of the United States was only about 37,000,000. The flag then carried 37 stars.

Canada at that time contained only 3,500,000 people. She had only one year earlier (1867) achieved Dominion status in the British Empire. The two countries, although their frontiers were expanding, were still largely rural. At the census of 1870, the American population living on farms and in country villages numbered about 30,000,000. Persons engaged in agriculture, forestry, and animal husbandry constituted half the total working population.

The War of the States, to be sure, was over, but the struggle had left in its wake a variety of national problems- not only political but also economic and social. The Nation was still feeling most of these with full force. For instance, greenbacks were still in circulation, and specie payment was not to be resumed until 11 years later. With the emancipation of the slaves, the labor problem reached a new phase. The Government of a now united Nation was anxious to offer its citizens fields for expansion, and through the Homestead Acts and subsequent land grants made thousands of farm acres available to pioneers.

To others more enterprising, new territories offered opportunity to exploit the resources of great plains and mountains. The primary need of the country was adequate transportation facilities, which were considered a key to further economic progress. However, all signs pointed to a great expansion ahead. The actual issues of the war itself had, for the most part, been settled. The country could now go forward to the fruitful destiny which its rich natural resources and its vigorous people promised.

Industry, commerce, and finance felt the new stimulus to surge forward. The business depression which immediately followed the close of the war proved short and was succeeded by a distinct upturn. By 1868 there was in progress a business revival which was to last five years. The Metropolitan was thus launched on a rising economic tide. Immigrants in large numbers were encouraged to come to add the work of their hands to the building of the country.

They made up a new working population, which took root, for the most part, in the cities. Crossroads were becoming towns almost overnight. Towns were swiftly growing into cities. A deeper sense of permanence colored the thoughts of the American people, who began to think in terms of a future, a home, family security. The United States was rapidly coming of age.

The class of wage earners was growing rapidly, a circumstance which, as we shall see, proved to be a determining factor in the development of the Metropolitan. As inventions multiplied and factories grew, women and children were employed in greater numbers. The acceleration of industry and of urban life accentuated the economic insecurity which many felt in their new environment.

City dwellers became conscious of the hazards of long working days, child labor, and industrial accidents. Mines and railroads and machines were being developed with consequent risk to human life. Health conditions in our cities were far from good. To provide a measure of security for this increasing urban population, life insurance and private health insurance (http://cheap-insurance-rates.com/health/) companies came into being.

The war decade of the 1860s gave opportunity for the great expansion of the life insurance and individual health insurance (http://cheap-insurance-rates.com/health/dallas.cfm) business. As a result, more than 100 companies were functioning by 1868. The New England Mutual and The Mutual Life Insurance Company of New York had already been in operation for 25 years.

In fact, when the Metropolitan appeared on the scene, there were already in existence organizations with such familiar names as the New York Life, the Equitable Life of New York, the Mutual Benefit of New Jersey, the John Hancock, the Aetna, and the Connecticut Mutual. By present standards none of these companies was large, yet in their day they were important economic enterprises. At the end of 1868 the largest of these, The Mutual Life of New York, had gross assets of more than $30,000,000 and insurance in force amounting to nearly $200,000,000.

The price of gas just keeps on going up and has no apparent relief in site (probably due more to George Bush’s close personal ties to big oil and the middle east than anything else). This in turn is driving up inflation and the cost of almost everything we buy or need including auto or car insurance. Here’s how to turn the tables in your favor and save money on your auto insurance like George Bush would if he had to pay for it.

We’ve all seen the commercials and mailings for Progressive and Geico telling us to get online and compare auto insurance companies and get competing quotes. There is a good reason for this – it will save you money. In most cases, shopping for auto insurance quotes online will save you big money (the average online auto insurance shopper pays 38% less). Get online and shop your auto or car insurance. You will save money.

It also helps to drive defensively and safely. According to the National Foundation for Highway and Traffic Safety, aggressive drivers cause 90% of all accidents and pay 30 – 70% more in car insurance premiums. Take a defensive driving course. Many technical and community colleges offer these courses and they may also reduce points on your license and DMV record. That leads to another important way of saving money on car insurance – get points removed from your license. You get points for things like speeding, not stopping for a stop sign, running a red light, etc… These points cause immediate rate increases to your insurance. Most states offer free or nearly free courses that will reduce the points on your license for most infractions (except for drunk driving and driving under the influence – you have to have a powerful name like Kennedy or Bush and then you get driven home).

Another way to save money on auto or car insurance is to increase your deductible and assume more risk.. You will save money by, for instance, going from a $250 deductible to a $1000 deductible. One word of caution, do not drop uninsured and under insured motorists coverage. Due to George Bush and his lenient policy in the past with illegal aliens in our country from Mexico we now have over 20 million illegal and uninsured motorists in America.

Another great way to save money on auto or car insurance is to drive a vehicle with a low theft rate. It is a proven fact that insurance companies charge higher premiums based on car brand and model theft rates. Since George Bush did practically nothing to stop these illegal aliens from Mexico we now have millions of them and they love to steal cars as some have found it easier than purchasing and they love Honda Civics and Accords. We don’t hear of many of them tooling around in a Mazda or a minivan. Maybe if George Bush invoked trade restrictions with Mexico this would change and jobs would come back to America?

Joining professional groups like AAA. AARP, etc… can also save you money on car or auto insurance as you may be entitled to group rates. There are many other ways also. Now you know how to save money on your car or auto insurance and why we are earning less and executives at big oil are earning more and more. Also, I don’t know if it’s a republican thing, but lets think before we put a Bush in a political office in the future. If you haven’t yet had the opportunity, please watch Farenheit 9/11 and learn more about George Bush and his brother in Florida.

Who wants to be a president; the President of the United States? Social Security reform is the winning ticket. Research supports the thesis that Social Security reform would provide all the lubrication necessary to get our economic ball bearings rolling in the right direction. Economies do not grow, or increase employment, when job providers are taxed and regulated unmercifully, throttling their energy, creativity, and profitability. Consumer spending pushes the economy; we need to do more than hand out a few hundred bucks.

The objective of the exercise, Barack, is to permanently place more disposable income in consumers’ wallets while providing incentives for employers to hire more workers. There are three areas where the impact of reforms would be beneficial to all, irrespective of political sentiment. Social Security reform would benefit the most people, most quickly. Next on the list, Hillary, would be elimination of income taxes (federal, state, and local) on: (a) all forms of retirement income, and then, (b) all forms of investment income. Third, and particularly important for job creation, John, would be the elimination of all income taxes and nuisance fees on businesses.

Who wants to be President?

Social Security will be the easiest to implement quickly while producing unprecedented increases in disposable income, business cost reductions, and job growth. Here’s a rough outline of a brainstorming plan. Throw out the politics and focus on the program— phase one deadline, January 1,2010.

Change Social Security funding to a mandatory, private program, for all employed persons, and add a voluntary program for those who are not employed. All employees would contribute to deferred fixed annuities, purchased from new divisions of qualified financial institutions. Existing Social Security credits would be the initial deposit to the contracts for all participants under age 60.

Employer matching contributions would be eliminated and participant contributions would be cut to a mandatory 3% of total compensation (including deferred comp, stock options, etc.). Both changes would be phased into the system by participant age group over a five-year period, youngest first. The five age groups would be 13-year periods starting at zero to thirteen (obviously for voluntary accounts) and ending with ages fifty-two through sixty-five.

Phase one would involve qualifying providers, assignment of workers, issuance of contracts, elimination of employer matching contributions, and elimination of income taxes on social security payments. Employers would be required to appoint at least one person to coordinate the transition.

Contributions to the annuity contracts would begin upon issue; the Social Security Administration (SSA) would have five years to move credits to participants, starting with the youngest group, and would be responsible for shortfalls to retirees for five years.

Under the new system, there would be no penalties for early retirement, but tax free annuity payments would begin at age sixty-five whether or not the person continued to work. Participants could voluntarily establish retirement accounts for non-working spouses and children, and could elect to deduct an additional 1% of salary for each account. A new Federal Administration for Social Security (ASS) will select, qualify, and monitor provider companies and their investment portfolios to assure that only high quality, income-generating securities are used to fund benefits.

Companies showing a surplus would be able to invest up to 25% of the surplus in stocks that qualify for the Investment Grade Value Stock Index (IGVSI). Only fixed life annuities would be available, but there would be 50% of cash value, family-only, death benefits up until the time of retirement. After age 65, the death benefit would be reduced 10% per year for four years. There would be no loans, withdrawal privileges, etc.

The ASS would be represented on provider company boards, would monitor annual audits of firm financial statements, and would supervise the selection of all non-company directors (60% of the board). Each provider company would be encouraged to use non-market value portfolio assessment techniques, such as The Working Capital Model, to monitor income portfolios. Retiree associations would also be represented on company boards of directors, and board member compensation would be capped at a reasonable number, plus 45% of ASS related expenses.

Annuity providers would be assigned a fair share of the huge Social Security Retirement Income Account (SSRIA) participant pool; every dollar contributed would be invested. All providers would use the same mortality tables and base interest rate guarantees in their calculations and would be precluded from any form of advertising. Companies would be required to focus 100% of their efforts on the SSRIA.

Annuity providers would be allowed a .5% investment management fee so long as the Annuity Investment Portfolio generated no less than the 3.5% income level needed to fund a guaranteed 3% contractual cash value growth rate. 50% of any excess realized income would be added to retirement accounts in the form of dividends.

The remaining 50% would be apportioned between three separately managed accounts for: retirement benefit support contingencies (20%), universal health care and disability benefits for annuitants (50%), and post retirement death benefits (10%). Half of the remaining 20% would become “surplus”. The balance would accrue equally to the employees of the insurance company— the mailroom staff receiving the same dollar amount as the CEO.

These changes would produce: a whole new sub-industry of jobs, increase disposable income, reduce the Federal budget deficit, provide universal retirement benefit eligibility, stabilize the market for plain vanilla corporate and government debt securities, reduce corporate expenses and product price levels, and subsidize health care for senior citizens. Annuity providers would have significant incentives to minimize costs, but their investment portfolios would be closely supervised to prevent excessive risk.

Politicians at all levels just love for us to hate big business, and have no compunctions about taxing and regulating employers in every manner imaginable. The impact is higher prices, lower job creation rates, and the need to move many operations to lower cost environments. Many small businesses simply refuse to hire additional employees. Regulatory procedures and company defense measures add billions to the costs of goods and services.

Social Security benefits are grossly inadequate yet we continue to tax all forms of retirement benefits. Politicians ignore the simple solutions to these problems and none seem to care about Social Security reform. It’s just too big an issue to be so shockingly ignored, but the last politician with any courage— well, I can’t remember who that was either.

Need a break from your monotonies? Tired of doing the same thing, at work place, do you feel bogged down? You definitely need a recreation, efreshment, a holiday!

If the traveler makes a yearly policy then all the trips that fall within the year will be taken care of with annual holiday insurance. The condition is that each trip shall be less than one month and should not be more than four months also. Such insurance will save you from any accident that may occur when you are on your trip. This insurance usually covers travellers from any kind of cancellation and/or deferred trips, medical emergencies, damage or loss of your asset and more such items.

Your holiday insurance comes in different packages:

â?¢ Annual

â?¢ Single Trip

â?¢ Backpacker

â?¢ Multiple holiday insurance

Clear your ambiguities before you apply for particular holiday insurance!

Do you cover pre-existing medical conditions?

If you have any pre-existing medical condition or if there is pre-existing political, ecological, or social strife in the area you are visiting, your travel insurance may not cover them.

Am I covered for any sports injuries?

If itâ??s risky in case of high risk activity such as mountain climbing, bunjee jumping etc. You holiday insurance policy will not cover any injuries sustained while you are taking part in sports. However, special covers for such adventurous activities are available; you can make use of them.

What happens in case of baggage misplacement?

Your holiday travel insurance covers your baggage misplacement or loss too. Do not forget to recover your baggage on time. As soon as you find your baggage missing, report it immediately.

How long will I have to wait for reimbursement in the event of a cancellation?

Itâ??s always good to know the timelines for refunds and other money matters.

What would the limit on health care coverage be?

Holiday travel insurance typically has a maximum amount of health care coverage. Know the financial limits of your policy. You might also want to ask about up-front costs or deductibles.

Buying the right Holiday Insurance is very important and it is worth taking the time to shop around for the right holiday insurance policy that suits your needs. It is not safe to assume that the cheapest holiday insurance is the worst as some of the more expensive holiday insurance policies on the market may not provide adequate cover. Take sufficient care while make your choice.

Health insurance is at the center of one of the most enduring and prominent social controversies in recent history. With costs rising year after year at an unprecedented rate, and the roster of uninsured continuing to grow as well, the health insurance quandary is at the forefront of the social and political dialog.

For those who are attempting to understand the nature of this controversy it is hard to know where to even begin to look. The health insurance debate spans so many aspects of society; from providers to customers, from hospitals to malpractice attorneys, and from the function of private markets to the role of government in healthcare. However, if one seeks to educate themselves on the many facets of the issue, then understanding health insurance companies is a logical starting point.

It has been over three-hundred years since the concept of health insurance had its genesis. The original health insurance business model was one where the focus was solely on disability. Only injuries that could leave the patient disabled were covered; everything else was paid for by the patient. Amazingly that basic arrangement remained in effect for the next two-hundred years. It wasn’t until the 20th century that the disability model of insurance was replaced with the more familiar, contemporary health insurance; hence, the modern health insurance companies were born.

The essential philosophy on which health insurance companies operate is that they enter into a contractual relationship with their customers. The customers pay insurance premiums, and in return the health insurance companies cover the costs of predetermined medical conditions such as most routine, preventive, and emergency medical conditions. In many cases some or all of the cost of prescription drugs is covered as well.

The obvious reason for people to purchase insurance is that despite the high costs of insurance, the high cost of medical care can be much greater if they are unfortunate enough to become sick or injured. And that scenario does hold true in reality, and health insurance companies frequently pay more in coverage than they collect in premiums for some individuals. To understand how they can do that and still remain profitable then you must understand the basic assumptions under which health insurance companies operate.

The first thing health insurance companies do when reviewing an application for coverage is review the individual’s medical history. The company knows that high risk individuals are likely to incur large medical expenses, and those individuals are generally rejected or offered coverage at an increased premium rate.

Of those who have medical histories that fall within normal parameters, they are offered coverage and become customers. The health insurance companies know that, with the help of some statistical calculation, they can determine the percentage of their insured clients who will become ill during the year, and they charge a sufficient premium that will not only cover those costs but allow for profitable operations as well.

Another way that health insurance companies control expenses and maintain profits is to make the customers pay for a portion of their service at the time it is rendered. That payment is in the form of a co–payment, which is the out-of-pocket expense for which the customer is responsible.

The purpose of the co-payment is multifunctional. Not only does it directly offset some of the expenses, it prevents people from abusing their coverage by seeking unnecessary treatment. If out-of-pocket expenses were very low, or non existent, people would be likely to go to the doctor or pharmacy for the slightest issue or problem; issues that in many cases do not require medical attention.

At the same time, health insurance companies know that if co-payment expenses are too high, people will put off seeking attention, and that could ultimately lead to even more serious problems for the customer and more expenses for the health insurance companies.

Ultimately, health insurance companies seek a balance in all things they do. They seek to find the right balance of price in co-payments and premiums, and they seek the ideal balance of patients who will require predictable needs and consistent premium payments.

They use enticements like exercise or smoking cessation incentives that may cost them a little now, but could save them much in the long run. It is a business model that has evolved over the centuries and continues to evolve to this day, but the basic principles on which health insurance companies operate remain relatively constant.

If you are a newbie in insurance policies, it is best to be educated on the subject. There are many myths and realities in dealing with insurance companies. It is necessary for you to have a general idea about such insurance rates so that you won’t have problems later on.

Car insurance is needed by people who want to be assured that their cars won’t experience distress, especially when the time comes and they get into an accident or anything else. There are things in this world that you have to be aware and to prepare for. This is why it is vital to assess and choose the most affordable and most reasonable price for your car insurance.

Hence, it is true that the insurance quotes reflect the cost of certain automobile- related expenses. In fact, there are many explanations on how the increasing cost of such insurances is accumulated.

Each year millions of people get into car accidents that involve personal injury. With this type of incidents, the typical price range of such treatment is around $6,000 to $9,000. Thus, this can easily turn into tens of thousands of dollars, depending on the type of car.

This problem is actually joined by the trouble of increasing claims of automobile injury, which are currently as much as 30 % in some states. These dilemmas can turn into the new car insurance holder’s burden of additional payments or premiums.

Moreover, another reason for this is the legal expenses that the company needs to pay due to the fact that an average jury award for vehicular liability cases are continuing to rise and can put up the pressure on auto insurance rates.

An average liability can cost from about $187,000 up to $269,000. This was the estimated record from the year 1994 up to the year 2000, respectively. Thus, the number one cause of death for people ages 1 up to 34 is car accident.

According to the United States Department of Transportation, these deaths cost more than $150 billion annually. People who are under the use of prohibited drugs, alcohol abuse, high- speed driving and are not using a seat belt are the leading people who are at risk of such an accident. Auto repair has also increased because of the rapid advancing age of technology, along with construction and design that have now become a must in this era. Automotive innovations and repair costs have increased tremendously and thus, higher car insurance may ensue because of this.

Hence, there is a notion that red cars cost more insurance. This is not true. Colour is never a determinant factor in calculating one’s car insurance rate. The factors that are important are the year, model, body, type, engine size and the age of the car. Even if you have a cheap car but you have a large engine, or it is an unusual model, it might cost a lot to have it insured as compared to a more expensive small car.

Then again, you will pay for a lesser amount in comprehensive coverage, which can cover the damage that is usually brought about by vandalism, hail, fire or even animal accidents. There is also a case, in which, two speeding tickets can make your car insurance rate go up.

Plus, it is also not true that every car insurance company can charge anyone on any way they please. Despite the increasing expenses of this company, they still have a way of covering all the damages and they also have regulators that review their customer rates.

It is also important to take note of the amount of your car, where in, it’s insurance will most likely have a relative cost to. This is due to the fact that some companies shoulders only a minimum amount and will not cover certain accidents. Of course, this will result into a lawsuit but they will not include all the damages. So, it is wiser to read your terms and conditions.

Thus, if someone drives your car and there is an accident, you will still be the one held responsible. You will be financially responsible for the accident. In most states, the car insurance that covers the accident is considered the primary insurance holder, which means that the insurance company is the one that should pay for the damages. Hence, there are cases that it is not enough and the driver’s insurance is the next in line to pay for the remaining damages. This is primarily why you need to know the car insurance policy in your state, as well as the laws that go hand in hand with it. States and even countries differ in policies politically and geographically.

Aside from this, there are also other factors that are being considered for car insurance rates. Of course, your rate won’t be the same as that of your neighbours. Your age, nature of your work, driving record, type of vehicle and marital status are all considered. This can really vary depending on the company’s standards. Sometimes, your charge can go down when you turn 25 because this is the time when car accidents go down. The extremes of ages, like that of a teenager and that of the forty year old individual is where the accident rate is at its highest.

Lastly, there is a so called rental reimbursement that can cover and pay for your rental car. This is for cases, wherein, you are on vacation and you just rented a car that resulted into an accident. This will help drivers pay for the damages to the car but this still depends on the limits you selected. Having more than one insurance policy is not really money- saving technique. In fact, it is more expensive. Most of the time, you can save your money by getting the best rate available in one company. Thus, if you want different types of insurance like that of the auto and homeowners insurance, you can look for another company that can give you the best deal. At times, you will get better deals from different insurance companies.

Car insurance is a way of preparing yourself for some stressful moments while driving your car. Getting one doesn’t mean that you are already assuming that you will encou7nter car theft or car accidents. Getting car insurance is a lot like accepting the reality that these things happen and that it is best to be prepared. This is better than not having a car insurance at all and end up paying more, just because you decided is best not to have one. Since car insurances these days have death or disability insurance for the driver or owner of the car, it is a lot like caring for your family and loved ones by leaving them with nothing to worry about.
Since there are many car insurance agencies these days, it is best to assess each one and check which has been in the industry for a long time. You can also check with friends for referrals. This is actually the best thing to do as compared to believing in advertisements and flyers.

We have some good news and some better news for corporate risk managers. The good news is that riskâ??once a mere afterthought in the world of corporate managementâ??is moving toward center stage. More and more business leaders are coming to understand the vital role that risk management plays in shaping the future of their companies . . . which means that the opportunities for risk managers to influence thinking at the C-suite and boardroom level are greater than ever before.

The better news? What board members, CEOs, CFOs, directors of operations, and other top-level executives mean by “risk” goes beyond the traditional definition. Todayâ??s “risk” is a bigger topic than in the past, carrying with it bigger challenges, new sets of skills, and a new way of thinking that you can master to elevate and expand the conversation.

If youâ??re a traditional risk manager, youâ??re expert at coping with the three familiar categories of business risk: hazard risks (fire, flood, earthquake), financial risks (bad loans, currency and interest rate swings), and operating risks (the computer system goes down, the supply chain gets interrupted, an employee steals). Youâ??ve probably been working with insurance companies, finance and security experts, and other specialists to reduce the levels of risk your business faces in each of these areas and to develop hedging strategies to minimize potential losses.

These traditional kinds of risks remain extremely important. But today, more and more company leaders are beginning to focus on a different set of risks that can be even more dangerous. These are the strategic risks your business faces.

Strategic risks target one or more of the crucial elements in the design of your companyâ??s business model. In some cases, they shatter the bond between you and your customers. In other cases, they undermine the unique value proposition that is the basis of your revenue stream. In still other cases, they siphon away the profits you depend on. And sometimes, they destroy the strategic control that helps your company fend off competition. In the worst case, a major strategic risk can threaten all these pillars of your business.

Not all businesses face every form of strategic risk (technology risk, competitor risk, customer risk, brand erosion, industry risk, project failure, etc.). But every business faces some. In fact, strategic risk comprises most of the total risk most companies face.

Here are a few examples of the kinds of strategic risks that most companies today are grappling with:

Project risk. Think back to the last major project your company initiated (R&D project, new product launch, market expansion, acquisition, IT project). What were the odds of success at the outset? What is the true success rate of all your companyâ??s projects in the past five to ten years?

If you assess them honestly, the true odds of success at the outset of most major projects are less than 20%–which means the risk of failure is greater than 80%. The new risk management asks: Can those odds be changed? How? What specific moves have other companies made to radically alter the odds in their favor? Which of these moves can you use to dramatically change the odds on your next project, or even on your entire portfolio of projects?

Customer risk. Has your business ever been surprised by its customersâ??by sudden, unforeseen shifts in their preferences, priorities, and tastes? When this happens, the revenue base on which your company is built can erode very quickly. But there are companies that have found specific ways to beat customer risk. How have they learned to get inside the minds of their customers, anticipating surprises before they happen? What growth breakthroughs did they create? Can you adopt their methods successfully? The new risk management is focusing on answering questions like these.

Transition risk. When technology or business design shifts transform an industry, as many as 80% of incumbent firms fail to survive the transition. But a handful of companies have not only beaten transition risk, but also turned it into an enormous growth opportunityâ??and a few have done it successfully more than once. What lessons do these survivors have to teach the rest of us? Here is another area where the new risk management is deeply involved.

These three examples just skim the surface of the kinds of challenges posed by strategic risk. (Our new book, The Upside, delves into the seven chief forms of strategic risk in significant detail.) But theyâ??ll suffice to illustrate the range of new problems risk managers can learn to think about in order to help their companies better navigate the new age of volatility that all of us are living through.

Of course, strategic risk has always existed. But it has not always been high on the list of leadership challenges. In more stable periods, everyone knew there were dangers that could threaten the viability of their companiesâ?? business model, somewhere out in the indefinite future. But they usually werenâ??t considered big enough or likely enough to worry much about.

Today risk has moved to the top of the agenda. As everyone intuitively senses, our world is becoming a riskier place, featuring greater risks, more frequent risks, and more kinds of risks.

The explosion of risk is particularly obvious in certain fields, such as geopolitics, weather systems, and financial markets (although shrewd analysts like mathematician Benoit Mandelbrot have argued that the risk in markets has always been greater than generally recognized). It is becoming especially obvious in business. Companies that once owned seemingly invulnerable strategic niches have been reeling under assaults from quarters no one predicted. As a result, one great name after another appears in scare heads on the business pages. General Motors and Ford are working hard to reestablish their market positions; once-powerful brands from Sony, Leviâ??s, and Readerâ??s Digest to Polaroid, are eroding or disappearing before the onslaught of new competitors; U.S. manufacturers are losing tens of thousands of jobs to overseas competitors; airlines are facing challenges in the wake of deregulation and geopolitical developments; and the PC, TV, and stereo businesses are becoming no-profit zones as once-exclusive technologies become commodities.

No wonder business leaders from the boardroom to the executive suite are becoming increasingly nervous about the risks their companies face. All they need to do is switch on the TV news or open their newspapers to get an inkling of the looming threats.

The evidence that risk is increasing isn’t just anecdotal. It’s quantitative as well.

As an example, let’s look at the stock performance of electrical utility companies. (Yes, we know you probably donâ??t work at or even invest in a utility, but bear with usâ??itâ??s an unusually clear example of a trend with broad implications.) The utility business was historically regarded as an industry with an extraordinarily low risk profileâ??the classic “widows and orphans” stock holding.

But in the 1990s, something happened. For a host of economic and political reasons, the electric energy industry was rapidly deregulated. As a result, the volatility of earnings (EBITDA) for the average electrical utility roughly doubled during the nineties. And volatility means large, unpredictable changesâ??in revenues, earnings growth, dividends, stock prices. In other words, risk. And stock market analysts have found that the same is true in other industries.

Why is risk so much more threatening in todayâ??s business world than ever before? There are many reasons, but several stand out:

â?¢ In todayâ??s wired world, customers have instant access to more information about products and services than ever beforeâ??and can switch brands at the click of a button.

â?¢ The multiplication of sales channels (from direct mail to QVC to big-box discounters to the Internet) is opening up more avenues for competition and transforming once-unique product offerings into commodities.

â?¢ Deregulation is forcing businesses that once enjoyed the security of near-monopoly markets and guaranteed profits to struggle for survival.

â?¢ Globalization has opened every market to competitors from around the world, exerting powerful downward pressures on prices and further damaging brand loyalty.

â?¢ Worldwide capital in search of investment opportunities is driving an ever-accelerating pace of technological change, creating upheavals in more and more industries, including ones not normally thought of as technology-driven.

Thanks to trends like these, business strategies that seemed to guarantee success just a decade ago are now being battered by unpredictable, often-destructive forces of change. No wonder, during the last twelve years, fully 170 of the Fortune 500 lost 50 percent or more of their value over a twelve-month periodâ??the kind of precipitous collapse that was once rare but now is becoming commonplace.

The fact is that many of those 170 value collapses suffered by the Fortune 500â??as well as similar calamities that have befallen small- and mid-sized companies in every industryâ??could have been foreseen, prevented, and transformed into opportunities for growth.

Whatâ??s required to make this happen? Two things:

(1) A large dose of new thinking, beginning with an expansion of the definition of “risk management” to include not just insurable risks, but “uninsurable risks” as well, including the increasingly dangerous strategic risks that can threaten a companyâ??s success, or survival; and

(2) Adoption of an array of new tools for measuring, responding to, and transforming riskâ??tools that many of todayâ??s smartest companies are already developing and deploying, and which other businesses in virtually every arena can learn from, imitate, and improve upon.

We wrote The Upside to serve as a resource in both of these areas.

Experts in the arena of traditional risk management can play a crucial role in expanding and elevating the conversation about risk in their organization they can bring to bear both the new thinking and the new tools that can help their companies reduce controllable volatility (there will always be plenty of the other kind). And the sooner they begin the process, the sooner they can mitigate those risks, and in most cases transform those risks into upside opportunities, and sources of significant competitive advantage.

For anybody with a pre-existing medical condition buying health insurance can be something of a nightmare and, while there are some promises that the ‘discrimination’ against those with pre-existing conditions might disappear following the current Presidential Election, this is almost certainly more political rhetoric than reality. So just how do you go about finding an affordable health insurance plan if you have a current medical problem?

The first and perhaps most important thing to realize is that not all insurance companies are the same and while some will penalize you heavily (or even refuse to cover your condition altogether) others will adopt a much more lenient attitude. So, your search should begin by looking for those companies which view your condition favorably.

Once you have found two or three health insurance companies which will look on your condition reasonably favorably, you then need to look in detail at how they would handle it. For example, if you are very lucky they might not penalize you at all and simply provide you with full cover at no additional cost. Failing this however, they will normally either exclude your condition from cover for a period of time, or agree to cover you for an additional premium.

When it comes to waiting times these should be reasonable and should certainly never exceed a year, effectively requiring you to renew your plan in order to receive the benefit of cover. As a rule of thumb, excluding a condition from cover for a period of three to six months is not generally considered to be unreasonable.

When it comes to additional cost however it is a matter of balancing this against the cost of treatment for your condition without insurance cover and here you will have to make an assessment based upon your experience of treatment to date and the prognosis for your condition. As long as you feel the additional cost is likely to fall below what you would otherwise have to pay then it is probably a good deal. This of course is not always something that is easy to assess and, in the absence of hard data on which to base your decision, it is often a question of simply deciding for yourself whether or not you consider the extra cost is reasonable.

Many people balk at the idea of having to pay extra for covering pre-existing conditions but it makes perfect sense for insurers to levy a charge in what is after all a private insurance market. Insurance premiums, whether for life insurance, car insurance or health insurance are all based upon risk and clearly if you have an existing medical condition the insurance company is at greater risk of having to pay out on your behalf.

Despite all of its problems one advantage of the current insurance market is that it is so large and so competitive that you will almost certainly find what you are looking for as long as you are prepared to take a bit of time and shop around.

Traveling without insurance?  I hope you are not making this mistake!

 Will I need travel insurance even if I have medical insurance?

The answer is almost always yes. Very few, if any, USA major medical insurance plans will cover an individual’s medical needs while he or she is outside the USA. 

Some companies will cover a percentage of emergency medical treatment received outside the USA. This is usually about 60%. The other 40% would be your responsibility.  Most insurance companies, while they do cover some medical cost overseas, will usually not cover emergency medical evacuation and other benefits that are generally included with a short term travel plan, such as lost checked luggage, hospital indemnity, return of mortal remain, and terrorism or political evacuation.

An accident in China

Recently a couple went to China for a short term trip.  The husband had to be medically evacuated from Kunming to Hong Kong following a very serious injury that occurred when he fell in remote China and broke his neck and fractured his skull.  Unfortunately, they did not purchase a short term travel plan as they were under the belief that their USA major medical plan would cover their medical needs.  While their USA coverage did help with their medical expenses, it did not pay anything toward the cost of the medical evacuation. 

Medical evacuation in emergencies

Most people want to know if the emergency medical evacuation on a short term plan guarantees that the insurance company will evacuate them to the USA. The answer is no. All insurance plans will evacuate you to the nearest place able to handle your emergency.  Once you are stable, the doctors on the ground, who are attending to your needs, the insurance company, and yourself or someone acting on your behalf will decide if you need to be evacuated to the USA.

Not all illness and injuries result in emergency medical evacuation. The determining factor is your ability to travel without medical assistance. If you are able to travel on your own then the emergency medical evacuation coverage does not apply. Remember that it has to be an emergency.

Be wise and buy travel insurance              

It is always wise to purchase a short term travel plan when taking a trip overseas. These plans are fairly inexpensive considering the benefits they offer. A short term overseas travel plan will help cover the additional expenses your USA major medical plan does not.