Business Economics Essay Example | Topics and Well Written Essays - 2000 words - 2

Business Economics - Essay Example The insurance company works this ways: â€Å"The insurance company collects premiums from policy holders, invests the money (usually in low risk investments), and then reimburses this money once the person passes away or the policy matures† (Investopedia ULC). â€Å"In the U.S., the  Gramm-Leach-Bliley Act of 1999 legislated that banks, brokerages, insurance firms and other types of financial institutions can join together to offer their customers a more complete range of services† and this has lead to a lot of mergers and acquisition† (Investopedia ULC). The Life Insurance Business of Prudential operates under the umbrella organization Prudential Financial Inc which is listed under the New York Stock Exchange. Prudential Financial Inc started with the life insurance and asset management business with a clientele of approximately 50 million individuals (Prudential Financial Inc, 2009). Its insurance business covers life insurance, annuities, long-term care insurance and Auto, Home, RV, Watercraft and Personal Liability Insurance. Prudential life insurance creates value through offering wide range of insurance that fits each individual. The delivery of insurance is designed to fit the specific need of the person. Examples of these are the varieties of life insurance of Prudential Life such as for wealth preservation and long-term death benefit. The company has its office in New Jersey and other states all-over the country. There are several factors that can affect the demand. Normally, textbooks would mention prices, income, taste, number of buyers, prices of related goods (whether substitute or complement) and expectations (whether on future prices or future income) (Mankiw, 1998). In this paper, we are going to discuss at least four – prices, income, number of buyers and expected future prices. Price change is the