Discuss the below in a 750 words:
The questions require brief, considered, responses. A premium will be placed on cogent, well-reasoned responses. Grades will be based on:
• Structure and coherence (i.e. the answer should flow as a narrative),
• Analytical strength (e.g. the extent to which you draw upon theoretical paradigms discussed in the course),
• Illustrations with examples,
• The synthesis of different viewpoints,
• Originality (including reasoning and structuring of your responses) and
• Professionalism (i.e. the extent to which you follow rules of writing papers, e.g. referencing, formatting, editing for grammatical and other errors).
For each answer you should cite at least four references. Marks will be deducted for those not following these rules and following the suggested word limit. Please make sure you cite every reference you use in your answer. The reference should be cited in the main body of the text as well as in the list of references at the end of the answer.
Question
Economic recovery across most of the world remains uneven and fragile. Lean economic growth coupled with heightened volatility has presented a challenging environment for investment managers. Furthermore problems in the insurance industry have been compounded by massive payouts following natural disasters, such as cyclones, floods and earthquakes. Analyse the operations of insurance companies and describe how their profitability has been affected by the prevailing economic environment. How are insurance companies responding to these challenges?