Evaluating the financial requirements of a life insurance company via simulation

During the 19 years between 1950 and the middle of 1968, 2 084 life insurance companies were organized in the United States. However, during this period 934 companies were merged, reinsured, or otherwise retired from business. Several probable reasons can be given for the retirement of many of these companies. Quite often companies are begun with a lack of managerial experience. Some companies often enter the field with a lack of experience in the basic operations of the insurance business. Some companies fail simply because they start with inadequate capital.