Is the Insurance Business Viable?

Posted: 29 Jul 2003

See all articles by Robert Ferguson

Robert Ferguson

Axiomatic Systems, Inc.

Dean Leistikow

Fordham University - Finance Area

John R. Powers

Corporate Communication Resources Inc.


The insurance business is fraught with problems for which, in many insurance lines, a solution that is acceptable to consumers and leaves the insurance business viable is not likely. We analyze the factors that create this situation. Consumers often view economically viable premiums as too high. In these cases, the tendency of private insurers is to abandon those lines to avoid failure. Pressure then mounts for government to provide insurance at "affordable" premiums or for government to force the insurance companies to do so. The results of the availability of such affordable insurance are not in consumers' interests.

Keywords: Economics, Macroeconomics

Suggested Citation

Ferguson, Robert and Leistikow, Dean and Powers, John R., Is the Insurance Business Viable?. Financial Analysts Journal, Vol. 59, No. 3, May/June 2003. Available at SSRN:

Robert Ferguson (Contact Author)

Axiomatic Systems, Inc. ( email )

5151 Collins Avenue, Suite 552
Miami Beach, FL 33140
United States
305-866-7720 (Phone)

Dean Leistikow

Fordham University - Finance Area ( email )

33 West 60th Street
New York, NY 10023
United States

John R. Powers

Corporate Communication Resources Inc.

Alexandria, VA
United States

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