Disadvantages of Shares In Insurance

Disadvantages of Shares In Insurance

Disadvantages of shares in insurance

(1) The high figure for claims in the now-life sections of insurance, particularly in fire and motor accident claims and underwriting. U.S.A. commitments brought great losses in the fire section in 2003. The phenomenal growth of road transport has caused a corresponding increase in losses on account of car accident claims.

(ii) A measure of competition from government pension schemes, and the possibility of subsidised state pension schemes by a leftist government, and even of the nationalisation of life assurance.

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