Insurance books

Discussion in 'Educational Resources' started by praetorian2, Nov 7, 2002.

  1. Can anyone here recommend a good book on the insurance industry, how insurance companies work, and how to read their financial statements, understand the key ratios, and look for potential misstatements and frauds.
    I am completely new to understanding them, but I want to learn. I looked on amazon, but there's hundreds of choices. Can someone here with experience (I know Aaron knows the business down), recommend one or 2 quality books that are basic enough for me to understand it.
  2. you see it is difficult to write a book when you have segments
    prop casualty
    senior market LTC(long term care)
    medicare supplemental

    Bottom line is - prop and casualty is in dire straights as we are in a "war-time economy" - more 9/11's are coming that is according to the analysts and actuaries.
    The rest you can write a book separately and the financial statements will lie as much as you will trust the CFO or the auditor
    I would not trust any book or number cruncher as Enron was never caught by the bean counters trust me you won't catch the next short from looking at financial statements.
    One word of advise: if you don't take my word for it - ask the local insurance commissioner in your state - they will have a book for you to read (for whatever it's worth)
  3. I just want something very general on the insurance industry. How float and underwriting and reserving work. Just so I can understand the balance sheets. I'm not looking to spot frauds.
  4. I want to also know what average combined ratios are... stuff like that.
  5. check the web-site of your state insurance commission and call them they will most definitely have a few books for you to read.
  6. Aaron


    I've got just the book for you, P2. "Basic Concepts of Accounting and Taxation of Property/Casualty Insurance Companies" by Sean Mooney, Larry Cohen, and Addison Shuster. Published by the Insurance Information Institute in NY City. ISBN 0-932387-44-6.

    It is just 93 pages long and has a nice little chapter on financial ratios (loss ratio, combined ratio, expense ratio, etc.)

    P.S. Its a good thing you put by name in your post -- I was just doing a search to see if anyone had used my name in the last couple days.
  7. Thankyou Aaron, I just bought it from Amazon. Looks like what I needed.
  8. Aaron could summerize insurance companies to which he has applied the concepts found in the book and then puplish it under the title "Schindler's List"

    OK that was lame. I am really bored though.