Traveler Insurance Industry Analysis

Effective February 7, 2013, SeaBright Insurance Company (“Seabright”), a Seattle-based insurance company specializing in workers compensation, entered into run-off. In 2012, Enstar Group Limited (“Enstar”), a run-off specialist, purchased SeaBright. SeaBright continues to manage existing claims but no longer writes new or renewal business, which means that premium activity has slowed down. In 2015, a major change occurred when all of SeaBright’s net liabilities (i.e. loss reserves associated with its prior workers comp business) were shifted to an Enstar affiliate, Clarendon National Insurance Company, through a reinsurance agreement. Circumstances that led the company to run-off: SeaBright was placed into run-off driven by weakened underwriting performance associated with reserve strengthening actions for accident years 2007 through 2009, primarily related to increasing medical cost trends. Additionally, SeaBright was facing marketplace challenges associated with its geographic and coverage lines expansion. Seabright has had to deal with significant pressure from its workers comp book developing adversely year-over-year and having to liquidate investments to satisfy claims and expenses. The reinsurance contract with Clarendon did provide major relief but SeaBright still remains a going concern and without premiums coming in and asset base rapidly shrinking, its solvency status as an insurance company remains questionable. The key now is to track the level of credit risk

Northwestern Mutual is one of the top insurance companies listed on the Fortune 500 whose annual report is effective in showing the company’s value and mission, and in promoting its image. The company has been providing and will continue delivering beneficial insurance and financial products to its customers. By repeating select words in varying contexts, using powerful and illustrative photos of the company’s customers and employees, as well as applying easy-to-navigate and accessible design, Northwestern Mutual created an effective Annual Report of 2011 that benefits its intended readers with important and targeted information.

Arthur J. Gallagher & Co. was founded in 1927 in a Chicago, IL suburb. Services provided are a full range of retail and wholesale property/casualty (P/C) and employee benefit products, claims and risk management services. The clients range from businesses of all sizes, not-for-profits, municipalities and individual insureds. They have over 20,000 employees with 100 offices globally. They have an intern program that accepts 150 students each year. “(Working Here”). Arthur J. Gallagher’s 2016 earnings were $5,594,800 in December of 2016 (“Investor’s Relation”).

To begin, Guardian is considered as a leader in the insurance industry. A couple of examples of the Guardian Insurance Agency’s commitment to its mission statement are its financial results and statistics. Today, Guardian stands at 7.3 Billion Dollars in capital and 1.5 billion in operating income. Additionally, this information can be validated by Investopedia

Allegiant Travel Company, parent company of Allegiant Air, is a low-cost airline carrierthat caters exclusively to the leisure traveler. There are currently 980 employees that manage the whole company (allegiantair.com). They are known for their innovative and sustainable business models based on keeping fares low and providing additional services for customers.

Founded in 1922, this Texas based insurance company, started out when 25 Army officers, San Antonio, Texas, made the agreement to insure one another’s automobiles. Within 90 years, this miniature insurance group has grown to be one of the premier financial service providers in the nation, boasting over 11.4 million members and 28 thousand employees. USAA provides over 47.2 million active products, such as policies for property/casualty and life insurance, personal banking, discount brokerage accounts, investment management services, and other special services such as real estate development and discount shopping. Keeping true to their original

People across the world are becoming disproportionately dependent on modern day technology, which results in more vulnerability to cyber-attacks including cybersecurity breaches. Today, the world continues to experience inordinate cases of cybersecurity meltdowns. There is a rapid growth in complexity and volume of cyber-attacks, and this undermines the success of security measures put in place to make the cyberspace secure for users. Cyber-attacks on both private and public information systems are a major issue for information security as well as the legal system. While most states require government organizations and certain federal vendors to report incidences of data breaches, no equivalent legislation exists to cover private entities.

In the previous five years, cybersecurity has turned into the most looked for after calling around the world. More than 90 percent of respondents to an overview directed by the Ponemon Institute (2011) detailed being a casualty to cyberattacks amid the most recent year, costing all things considered more than $2 million for each association. This number keeps on ascending as the two programmers and security devices progress. As indicated by PwC, roughly 33% of all U.S. organizations are as of now utilizing digital protection (Lindros and Tittel, 2016).

As most travel agencies websites, Amex Web page offered the customer the possibility to research for flight only, flight with hotel, or flight with hotel and car as well as special offers for their members on hotels, vacations packages, complimentary resort stays. The commercial catch of American Express is that the web site offers customers many products with incentives and rewards with the convenience of a unique card when the travel is booked with them. An internaut can wander through the site without being registered but needs to become an American Express member to look deeper into detailed pages. The future customer has the obligation to detain one American Express cards; the gold or platinum car has an annual fee of 75 dollars, fees that can be waived for the first year as a promotion, or the blue or blue-sky card obtainable without any annual fee. Carrying an Amex card offers customary benefits to the travelers on a large array of services such as offering a no deductible and a collision damage waiver when renting a car as well as benefits in case of accidental death or dismemberment coverage with a very small premium. The web site offers a convenient one stop for reservations, planning, and payment arrangements for prestige travel around the world.

The potential of violations can come from numerous sources (Lawrence & Weber, 2011) (Consumer Information). Recently Equifax had a data breach of their customer’s personal information. The hackers accessed the names, social security numbers, birthdates, and addresses of 142 million American consumers (Consumer Information). This is frightening and happens more often that we think. According to PricewaterhouseCoopers executive, ”Cybercrime has emerged as a formidable threat. Over the years millions have fallen victim to theses attacks. In a survey of 583 U.S. companies, 90 percent said that hackers breached their company’s computers over the last twelve months (Lawrence & Weber, 2011). Cyber crimes occur when hackers attempt to damage or destroy a computer network or system of company’s data. Criminals will use one of the most harmful systems around. This system is called a zombie. A zombie is

The buyers of the services of travel agencies are consumers, that is, individuals and businesses. For this industry we are dealing with a small degree of concentration, due to the wide range of services.

Cyber criminals take pride in creating chaos, and the chaos that cyber criminals inflict on their victims can be crippling to individuals and corporations. We have all heard about hackers getting information from major retail chains as well as information being leaked that included Social Security numbers for millions of people. We use the internet with somewhat of a naivete expectation that all of our information is safe. That is, until something untoward occurs, and then it can be all out panic.

Cybercrime has become a fast growing concern for the 21st century as businesses, institutions and individuals grow into an interconnected web of computer networks. Online business transactions, along with the sharing of personal information, are vulnerable to a host of disasters that can reap economic and social havoc. Some sources say that today, cybercrime costs more than $1.0 trillion to society--Global Industry Analysts, Inc. forecasted the world cyber security market to reach $80 billion by 2017 (Gale, 2011).

On the other hand, Mukhopadhyay et al (2005) had come up with a utility model in determining the insurability of cyber risks. This model uses insurance as a supplementary tool to help reduce the financial loss due to e-risks. This model works to find the out the price of a company’s premium based on the risk profiles of the clients as well providing the types of e-risk products can be used by a particular company. This model focuses on calculation of risks in response to the premium price offered based on actuarial sciences. The utility model is based on the assumption of the user, having an initial capital of W, and access the internet through an ISP, making him vulnerable to risks of cyber attacks such as hacking and malware, hence, the risk of financial loss (X)

travellers as the World 's Best Airline in 2013. Accessed on 23 February 2014 via