HIHInsurenceGroupCollapse.doc

Assessment item 1: Web Based Research Length: 3000 words Task Go to the following website about the HIH Insurance Company. .au/library/intguide/econ/hih_insurance.htm (HIH Insurance Group Collapse) and read the article. It is a summary of a very large insurance company failure in Australia. You may use any other website or source of information which you think might help. ? Make a history of the main events in the collapse of the company. Can you identify the bad or wrong moves that contributed to the collapse? Can you identify the most important people in the company who might have contributed to the collapse? ? Using the descriptions of management types discussed in the course, make comment on the ethical behaviours of the principal management persons in the company and explain the basis for your assessment of these persons.? Rationale Ultimately, strategy and strategic thinking can be applied to organisations to take advantage of a company in a manner which would not be considered ethical. Students are required to consider how different decision choices by the directors may have avoided the collapse of the company. Marking criteria This item is intended to make students think outside the square and examine the need to change strategy during a sequence of events. Demonstrated appreciation of the situation 25% Strategic issues related to Company issues 25% ?Strategic issues related to the Operations of the company 25% ?Summary of how differently you might have run the company 25% Attachment article from Australia government reports HIH Insurance Group Collapse E-Brief: Online Only issued Date 29 November 2001 David Kehl Analysis and PolicyEconomics, Commerce and Industrial Relations Group Background There are few surprises when it comes to insurance, but when they do come, they nearly always bring bad news. Such was the demise of HIH Insurance Limited (HIH): both a surprise (to many) and very bad news for many policyholders. On Thursday, 15 March 2001, HI