Read the text below entitled “Recent developments” in order to answer questions 27 to 30:

Recent developments
Source: www.bls.gov (Adapted)
Jan 28th, 2010

    The recent financial crisis has resulted in large losses for the insurance industry. Industry conditions in the near term remain tenuous, particularly as many companies will continue to experience declining revenues, investment losses, and credit rating downgrades, which can affect an insurer’s ability to repay debt by having to pay a higher interest rate. Additionally, insurance companies that were trading in credit default swaps and other risky instruments without sufficient hedging suffered especially hard, and some companies even became insolvent. Companies with prudent risk management strategies also suffered large losses, because most investment instruments owned by insurance companies experienced falling values as they were being sold or marked down as the stock market deteriorated in late 2008. Nonetheless, as insurers rebuild capital and adhere to stricter Federal regulations, the insurance industry is likely to stabilize.
    The Internet is an important tool for insurance carriers in reaching potential and existing customers. Insurance carriers use the Internet to enable customers to access online account and billing information, view insurance quotes, and purchase policies.