The Global Environment of Insurance

By Ennsfellner, Karl C. | Journal of Risk and Insurance, March 2001 | Go to article overview

The Global Environment of Insurance

Ennsfellner, Karl C., Journal of Risk and Insurance

The Global Environment of Insurance, coordinated by Leonard J. Watson, 1999, New York: The McGraw-Hill Companies, Inc.

Reviewer: Karl C. Ennsfellner, Vienna University of Economics and Business Administration, Austria

The increasing international and global exposure of the insurance industry of the United States motivated the Insurance Institute of America to produce a textbook with an international focus. The objective of this text is to provide an overview of the global environment of insurance, thus helping to prepare managers for their international responsibilities.

To achieve this objective, the authors and coordinators combine source materials from selected chapters of two other books; add material and create a new, customized text responding to requirements revealed by a survey, done by the CPCU Society's International Interest Section before the book was written. The survey showed that 15 subjects should be covered-leading to the text's 15 chapters. The source material for four chapters is taken exclusively from the book International Business: The Challenge of Global Competition, by Donald Ball and Wendell McCulloch, while the source material for five chapters originates from Harold Skipper's text International Risk and Insurance. The source material for one chapter is taken from both texts, one chapter has been written by Leonard Watson, one by Dale Gianturco, and one chapter by Leonard Watson in cooperation with Albert Camardella, and two chapters are co-authored by Leonard Watson and Dominic Davison-Jenkins.

Chapter One provides an excellent introduction to the global aspects of the risk management process. It explains why it is necessary to concentrate on the international aspects of risk management. Beginning with a historical overview of global trade, Chapter One discusses the reasons organizations become increasingly international and shows the different approaches to international activities. A brief history of insurance leads the attention of the reader to the importance of the role of insurance in risk management. Then the text suggests a framework to assist risk managers in evaluating global risks, with the identification of the exposed location as the first step, the identification of differences in the five primary forces affecting each country involved as the second step, and the application of the risk management process as the final element.

Chapters Two through Six deal with the five forces that form the environment of the insurance business in different countries. Chapter Two concentrates on the economic and socioeconomic factors. The reader learns which economic indicators to use but also how to use them in the process of decision making and how to avoid misinterpretations. At the same time, this chapter provides a rich impression of the world's most important problems regarding the economic environment of insurance markets, thus helping the reader to understand international differences in the global marketplace. Chapter Three explains the consequences of location, topography, climate, and natural resources for businesses and products, while Chapter Four is packed with information on sociocultural forces in various countries. Chapter Four helps the reader to understand the significance of culture for international business as well as showing the significance of religion to businesspeople. It discusses the importance of the ability to speak local languages and presents Hofstede's four cultural value dimensions.

Chapter Five provides an indication of the types of risks to private businesses resulting from political forces. It describes the major political ideologies, examines government ownership of businesses, and deals with the trend towards privatization. Terrorism is also discussed in the chapter; it also gives advice on how to minimize risks of being a victim of a terrorist attack while abroad. The chapter ends by providing an introduction to country risk assessments. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Cite this article

Cited article

Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25,

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

The Global Environment of Insurance


Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25,

    New feature

    It is estimated that 1 in 10 people have dyslexia, and in an effort to make Questia easier to use for those people, we have added a new choice of font to the Reader. That font is called OpenDyslexic, and has been designed to help with some of the symptoms of dyslexia. For more information on this font, please visit

    To use OpenDyslexic, choose it from the Typeface list in Font settings.

    OK, got it!

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search


    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.