Fiduciary Fraud

Reinsurance Industry Practice in the U.S and the Recent Scandal
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Reinsurance as a Common Practice in the United States and Insurance Scandals
Reinsurance means the covering of insurance companies against risks. It is a method of shifting some of the commercial risk insurance companies to another insurance company. Reinsurance gets today practiced in the world as a business (Reinsurance, 2018).
The United States has experts in the industry. The sector got established to be offering the reinsurance benefits alone. They currently have a totality of up to seven percent of the property in the U.S. That is the wealth that is in the reinsurance industry in the form of contributions that were written in the year two thousand and ten. That was for the AIG (2018, Reinsurance). The industry is dynamic, and the primary insurers remain to be covering on the risks and contributions. There are the hazards that involve nature and such gets traded with institutional investors. New commodities in the sector indicate the blending of the industry and the investment banking.
There have been recent developments such as the financial and market conditions and the study developments by the Federal Insurance Office releasing he reinsurance reports (Reinsurance, 2018). Recent insurance scandals include that of the American Insurance Group where the CEO resigned from his chairmanship position by fraud allegations and manipulations on accounting information at the most prominent world insurer.

The evidence of the frauds in the American Insurance Group includes the recent revelations and the knowledge that has appeared in the light in the past year. It gets suggested that the AIG has made deals to doctor the financial figures, for its own and of the other companies. That has shown the vast frauds in the highest levels in the American Corporations and the economic elites (Kay, 2005).

References
Kay, J. (2005, March 24). World Socialist Web Site. Retrieved October 17, 2018, from https://www.wsws.org/en/articles/2005/03/aig-m24.html
Reinsurance. (2018, May 30). Retrieved October 17, 2018, from https://www.iii.org/publications/insurance-handbook/regulatory-and-financial-environment/reinsurance