This feature is inspired by one of my recent stays in the US. The country is to some a mark of economic growth, to some a land of opportunities, and to some (myself included) an insured country. Quick and honest insurance claims enable people to lead risk-free lives. An example of advanced risk-management systems in action is the famous New York Life Insurance Company.

The foundation of the company is woven intricately, yet subtly, with the history of the United States. Underwriting American lives in the perilous mid-19th century was a new game that had to be invented. By today's standards, it was an era of unusual risks and uncertainty. The hazards of life took a heavy toll, as did the wars on the frontiers, outbreaks of disease, poor water and sewage systems and cities and towns made of wood that often burned to the ground, causing thousands to die.

On April 12, 1845, 20 public spirited men arrived at 57, Wall Street, on horseback and in fine carriages for a brisk meeting that established the purpose of the company that was soon to be named New York Life.

It was at that time, they felt, a bold experiment. Their mission was to focus the energies of the young company on the mutual life insurance business. Unlike a stock company, which offers shares of stocks on public exchanges, they had in mind a mutual insurance company that would be operated and maintained for the benefit of its members or policy holders, who would have the right to vote for the company's board of directors and to receive annual dividends.

The insurance business they started was under the auspices of the Nautilus Insurance Company. In 1949, it became New York Life Insurance Company or Life as it is affectionately called by New Yorkers.

Today, Life, including its subsidiaries, is a Fortune 100 company with over $84 billion in assets under management and $2 billion in reserves. It is housed in a magnificent piece of architecture on the prestigious Madison Avenue in the Manhattan business centre of New York City. Its clients have included many US presidents and industrial giants like General Motors.

The board of directors include leaders from the worlds of finance, communication and business. Life agents must complete a rigorous training course at a university before they can sell its products. And even after that they are required to continue their professional education throughout their career. The agents are recruited on the basis of initiative, intelligence and character by the sales managers.

Going back in history, the concept of life insurance was looked down upon for two reasons; a) assigning a dollar value to human life seemed irreligious to many, b) it was associated with gambling. It was thus a challenging task in the 19th century to create a consumer demand for such a product as a life insurance policy. Despite these odds, Life accumulated $41 million during its first decade despite paying out another $1 million to its policy holders and beneficiaries during the same decade. Since then, Life has never looked back.

The future for this global insurer seems to be insured itself:
a) It is unlikely that Life will default in the many decades to come. In fact, it should be recalled that the downward plunge (economically) of the 1930s was more spectacular than the present boom the US is facing. Many corporations went bankrupt and many defaulted with public money. Yet Life, without taking elaborate preventive measures, preserved the assets of its policy owners. With no equities in its portfolio, it was able to exercise tight control over its destiny.

Unlike many other life insurers, Life's receipts continued to exceed its disbursements. In 1933, known as the year of the Great Depression, the company met obligations to the tune of $366 million and yet managed to increase its assets to $2 billion! In fact, an insurance company is rated on two points-financial strength and the willingness and ability to pay claims-and these ought to be the critical factors in choosing an insurer. Though any downfall in the US economy is unseen in this decade, Life will continue to meet its obligations even under conditions of temporary market crashes. It may safely be concluded that one money's is safe in its responsible hands.

b) The great success of life insurance is perfectly natural when an economy is going through a tough time. But what is the reason behind the product getting sold in this era of plenty? In contrast, the takers of a life insurance policy in India are few. My astrological analysis, coupled with a comparative study of US life from close quarters, attributes it to the nuclear family system prevalent on the continent.

For generations, the Indian society has encouraged the joint family system. The system was capable of giving financial and emotional support to family members in times of tragedy, especially in the event of the death of an earning family member. In modern parlance, it can be said that the system was intrinsically adept at crisis management, not because its members were MBAs, but because of their sheer numbers. Nuclear families are exposed to the same risks of human life, but do not possess the in-built defence mechanisms that joint families do, and so have to arrange the same externally in the form of a life insurance policy.

The growing nuclearisation of American society has supported this and similar companies. With the ever-worsening family fabric and deteriorating social life in the US, the importance of Life can only rise. The curve of Life will be a rising one always.

c) 2001 will be a notable year for Life, when it will occupy a very high position on the Fortune 100 list; this will be achieved as a result of its expansion of operations in foreign lands. A coveted prize or medal of recognition many be awarded in the same year.

d) The present decade will see many smaller companies, including insurance ones, being phased out; it will be an era of corporations-this of course supports Life.