Recent orders
US Government Regulation of Insurance
Name
Tutor
Course
Date
US government regulation of insurance
Introduction
A look at the history of insurance regulation in the United States reveals that there have been periodic federal-state accommodation and tensions. With the proposals to merge industries in the financial sector, there are questions that come up on the appropriateness of insurance regulatory structures, which have an effect on the functional regulation of the financial industries. These industries are inclusive of securities, banking and insurance organizations. Apart from coming up with proposals to functionally regulate the industries, the state regulators and legislators, as well as the insurance industry has expressed some level of commitment to maintain the insurance regulatory structure as it is in the current state (Randall 629). By examining the current insurance regulation systems, as well as problems the problems that come about due to insurance regulation, this paper discusses some of the justifications that prompt insurance regulation in the United States.
Justification for insurance regulation
One of the problems that face the insurance industry is the presence of some form of potentially vicious competition, which might be excessive at some point. This necessitates the regulation of the industry since it is virtually impossible to determine the real costs of insurance policies unless the policy reaches its maturity, to which all claims are paid. For this reason, there is a tendency that the insurance business adopts competitive pricing (Randall 638). In case of insolvency, the consequences to the beneficiaries, as well as the insurer might bring about some devastation, which is preventable through regulatory measures.
On the other hand, it is essential to have some uniformity of insurance regulation, which is achievable through centralization. With the consideration that there is an increasing interdependence in the insurance industry, it is possible to determine that the American insurers are consolidating into large national, as well as international businesses. Consequently, the numbers of non-U.S. insurers coming into the U.S. market is escalating. With this consideration, it is possible to question the ability of the states to monitor the global and complex enterprise, prompting the need to include the federal government. In order to fill the centralization gap, the National Association of Insurance Commission (NAIC), essentially assists in the centralization process (Randall 660). This responsibility is an expansion of the initial responsibilities that were inclusive of model law drafting and its initial advisory functions.
Federal regulations
The McCarran-Ferguson Insurance Regulation Act indicates provides for the idea indicating federal law is not subject causing any form of impairment to the state law, which regulates the business of insurance. However, the federal law can exercise some regulatory authority only if it has some form of relation to the business of insurance. According to the act, federal antitrust legislation will only apply to the business of insurance, taking into account the fact that the business should not be under the regulation of the state antitrust laws. Consequently, the Federal Insurance Office (FIO) report, 2012, gives a leeway of establishing a blueprint for the way in which the state and the federal regulators can be able to work collectively to reshape the insurance industry (Postal and Festa). This development was necessitated by the economic slump of the year 2007-2008. This means that together with the state regulation, the Federal Reserve Board, have the mandate to establish standards of greater capital. It also evaluates the management of the insurance companies in order to ensure that they do not present a risk to the financial systems around the globe (Postal and Festa).
Works cited
Postal, Arthur, D., & Festa, E. FIO report: The hinge on insurance regulation. Retrieved from: <http://www.lifehealthpro.com/2013/10/17/fio-report-the-hinge-on-insurance-regulation?t=fixed-indexed>
Randall, S. insurance regulation in the United States: Regulatory federalism and the national association of insurance commissioners. University of Alabama. 1992. Print
US funding for prisons vs. schools
Name
Course
Tutor
Date
US funding for prisons vs. schools
The prison population of America is 2,228,424, which equals to the number of the population in Texas. The cost for each inmate amounts to $167,731 each year. This amounts to approximately $4.48 trillion per year. As a result, in all the states in Unites States, the cost per individual inmate exceeds that spent on students. This is faced with criticism since it is ironic for a country to spend more on prison than in schools (Congress 1500). As a result, most legislators and lawmakers in the country are coming up with efforts to question the United States system of reform.
The funding that is directed towards prisons has quadrupled and the trend is increasing each day. The greatest expenditure spent in prisons is due to the issue of US locking up approximately 25% of the world’s prisoners. This is ironic considering that US accounts for only 5% of the world’s population. The United States’ funding for schools amount to $550 billion every year for both primary and secondary public education. On an average, the schools spend approximately $10,658 per student though expenditures may greatly vary in different states (Books 240). In the USA, all the three levels of government contribute towards educational funding. The state and the local governments provide approximately 44% of the educational funding. The federal government contributes 12% of all the direct expenditures of education. Therefore, it is evident that the government of the United States spends more on prison than in schools due to the high number of prisoners it locks in its prison from across the globe. Thus, a lot has to be done to change the existing system to reduce the prison expenditures and increase its spending on education (Books 248).
Works Cited
Books, Sue. Poverty and Schooling in the U.S. New York: Rouledge, 2009.
Congress (U.S.), U S Congress. Congressional Record, V. 153. Washington, DC: Government Printing Press, 2007.
Discussion Board #2 – The Special Events Company
Discussion Board #2 – The Special Events Company
Name:
University:
Course:
Tutor:
Date:
Discussion Board #2 – The Special Events Company
Introduction
Special Events Company is a U.S based business entity specializing in rendering quality event planning services to different customers at affordable prices. Some of the services which will be offered by the firm include that of organizing classy and exuberant wedding ceremonies and celebrations in Palm on behalf of its customers most of whom would be celebrities from the music and film industries. The key to achieving this would that of incorporating technological advancement in its undertakings considering that technology generally enhances the likelihood of different entities achieving operational success and efficiency (Deutscher et al, 2000). Similarly, Special Events Company intends to provide customized event planning services to its young and middle aged fortunate clients. This strategy will impact positively on the company’s competitiveness by increasing its ability to attract and retain more customers (Allen, 2011).
Special Events Company’s position in the value chain
Value chain assists companies to successful carry out their normal business activities while at the same time ensuring doing this will give them a competitive advantage over their rivals (Finne, 2008). Special Events Company’s position in the value can be described as one that will focus on continuously improving the quality of the services being offered to customers in cost efficient ways hence averting cases of clients being forced to pay higher charges for the same. As highlighted earlier, the achievement of this objective would depend heavily on the company’s ability to continuously adopt highly functional technological systems.
How the firm will create value for customer
Creating value for customer is one of the most essential business strategies since it is directly related to the ability of a given organization to generate customer loyalty and strong corporate image (Deutscher et al, 2000). Special Events Company intends to create value to its customers by offering them personalized and diversified services meant to exceed the clients’ expectations in regards to meeting their requirements. The firm will begin by ascertaining the needs of those who seek its services. This will then be followed by designing innovative ways through which these needs can be met in a manner that will not only satisfy the customers but also end up impressing them. Use of unique and superior designs, business technology as well as focused marketing will be emphasized as a way of ensuring that the concept of creating value for customers won’t jeopardize the company’s ability to provide affordable services (Finne, 2008).
Revenue streams and cost drivers
Special Events Company will have two key revenue streams, the main one being that of charging clients who would like the entity to plan and organize different events on their behalf. The other stream would be that of seeking payments from other entities which will opt to showcase their products or services in the venues where the company would be organizing these events. For instance, the firm would consider allowing some flower businesses to market themselves during weeding events but only if they pay the predetermined promotion charges. Cost drivers encompass all factors or processes which may affect the cost associated with a certain business or economic activity (Allen, 2011). The two main cost drivers, in the case of Special Events Company, will be the number of events planned and organized by the firm as well as venues of such events. The two are projected to change the total expenditure incurred by the company in the course of its operations from period to period (Allen, 2011).
Weaknesses in the company’s business model
The only weakness in the proposed Special Events Company’s business model is that of emphasizing on charging low prices for its services all the time. Businesses are required to establish a link between their pricing strategy and profitability objectives if they are to achieve the latter (Finne, 2008). This means that Special Events Company’s managers will be under pressure to design innovative strategies meant to cut down the firm’s operating costs especially during hard economic time such as when there is global economic recession (Allen, 2011).
Special Events Company’s competitive strategy
The company’s competitive advantage will be based on its position in the value chain and will therefore entail increasing the perceived value of the services being offered to clients on periodic basis while maintaining their affordability. This will put the firm in a better position of attracting and retaining customers as compared to its business rivals (Deutscher et al, 2000). Innovation, creativity and technology will make it possible for the firm to enhance the value of its services in cost efficient ways.
Important biblical concepts to consider in this part of the business plan
Special Events Company will base its operations on strong biblical values considering this will impact positively on its drive to uphold ethical business behavior. Visionary and Christian-based leadership, financial stewardship as well as impacting humanity with God’s love and mercy are some of the biblical concepts which will be embraced by the firm while purporting its activities. Doing this will enable the company to create concrete relationships with various stakeholders such as with its customers, suppliers and even employees.
Conclusion
It should be noted that Special Events Company’s competitive strategy and position in the value chain will be based on the idea of offering high quality event planning and organizing services to clients at affordable prices. Innovation and technological advancements will provide the foundation upon which the company will continue ensuring that its operations are carried out in cost efficient ways. Moreover, biblical concepts such as Christian leadership and financial stewardship will make it possible for the firm to uphold business ethics while transacting with its stakeholders.
References
Allen, R. (2011). Launching New Ventures: An Entrepreneurial Approach. Stamford: Cengage Learning.
Deutscher, T., Barclay, D., More, R. & Ryans, A. (2000). Winning Market Leadership: Strategic Market Planning for Technology-Driven Businesses. Hoboken: John Wiley & Sons.
Finne, S. (2008). The Retail Value Chain: How to Gain Competitive Advantage through Efficient Consumer Response (ECR) Strategies. London: Kogan Page Publishers.