insurance
...nsurance and non–compulsory insurance. HIH insurance was influenced by the operating environment having to deal with customers, suppliers, competition with other insurance companies and interest group factors. Shareholders of HIH are likely to incur significant losses on their investment, perhaps their entire capital. Prior to and after the collapse of HIH, a substantial number of policyholders with particular types of insurance had their policies taken over and honored by other insurers. According to the HIH 2000 Annual Report, the company had gross premium revenue of $2.8 billion, total assets of $8.0 billion, total liabilities of $7.1 billion, with net assets of $900 million. The reason for HIH insurance company collapse was due to failures to rapid expansion, unsupervised delegation of authority, extensive and complex reinsurance arra...