irmcentral.com

Welcome to Insurance & Risk Management Central

At IRM Central, our mission is to be the premier authority on practical strategies for risk management, insurance and legal professionals. In the past we have earned our customers' trust and confidence by providing them with the most up-to-date, reliable information and by quickly responding to their needs.

Recently our team completed a survey of top life insurance brokers across the United States. During this process, IRM Central has formed many new parnerships and mutually beneficial relationships; never before have we been so confident that we can put our clients into the hands of the right life insurance broker. Count on IRM Central to thoroughly assess your needs and connect you with the most talented, distinguished insurance brokers.

Is the Life Insurance Industry Investing Their Money Wisely?

The life insurance industry invests their funds into the stock market for a number of reasons. Chief among them is to ensure that there is enough cash on hand to pay out to claimants. Premiums alone do not cover the cost of a benefit payout, so the life insurance company uses the stock market to increase their financial fluidity. The fact that the stock market has been on a roller coaster for the past few years means returns have been poor. As a result, life insurance companies put their money where they can get returns. The problem is, investment managers sometime take too high of a risk by investing in stocks with a factoring company and real estate.

A factoring company is part of of a high-risk industry, wherein the factor buys the accounts receivable of a business. The issue here is that the factoring company has to rely on repayment to get their money back. If the debtor defaults, the investor and the factoring company are out the money.

The days of real estate as an investment vehicle are also over, but many still haven't shaken the concept. Investment managers put money into real estate stocks even though it should be obvious the ride is over.

All it takes is one misstep on the part of the life insurance company to set off a perilous chain-reaction. Life insurance companies need to stick to conservative investment ideals for safety.

Credit Card Debt Can Influence Insurance Costs

At IRM Central, we know that a person's credit score is when an individual wants to take out a loan, get a new phone or utilities service or obtain a credit card. However, insurance companies have been using an individual's credit score to determine his or her risk level and assign an appropriate premium rate. In other words, lower credit scores pay higher rates.

This issue has caused a stir among insurance company repetitiveness, consumers and public officials alike. On the one hand, some argue that having too much debt or not making payments on one's credit card debt is a sign that the individual is not conscientious. On the other hand, some say that a person's debt has nothing to do with his or her lifestyle -- such as engaging in healthy behavior or driving safely. In a time when individuals are trying everything from cancelling cable to credit card debt negotiation to get their debt down, these individuals suggest that debt and a low credit score are a consequence of the economy, not risky behavior.

At IRM Central, we understand that issues like this can be confusing to the traditional consumer. Understanding how issues like credit scores can affect insurance rates is not something that large insurance companies take the time to explain. At IRM Central, we help insurance consumers find underwriters who will work with them for the best deals -- regardless of their credit scores.