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About a decade ago, finite risk insurance and reinsurance came under regulatory scrutiny. Hank Greenberg, the CEO fixture of AIG was removed and a potential
About a decade ago, finite risk insurance and reinsurance came under regulatory scrutiny. Hank Greenberg, the CEO fixture of AIG was removed and a potential Warren Buffet replacement at Berkshire Hathaway, Joe Brandon resigned from GenRe as a result of the scandal. The article "The Uses and Abuses of Finite Risk Reinsurance" highlights the advantages and potential pitfalls of these particular risk financing methods.
Were the problems with finite risk reinsurance mainly an insurance problem or an accounting problem? Explain your answer.
Given the history of these products, is there still a use for them today? Explain your answer.
Explain the concept of transparency when applied to these types of products
Based on your research of this topic, did or should any of the finite risk reinsurance scandal tarnish Warren Buffet and Berkshire Hathaway? Explain your answer.
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