Public Law And The Challenges Of Transparency And Accountability In The United Kingdom Sample College Essay

In the United Kingdom (UK), public law, such as constitutional law, protects democracy at all costs by establishing principles that govern the interaction between the Government and legal citizens or institutions; public laws keep tyranny at bay. Moreover, through public law North Ireland, Scotland, England, and Wales can reinforce the state sovereignty of the United Kingdom. To breed transparency and democracy, the activities of the arms of Government, the executive and the legislature have to be scrutinized by the judiciary. However, there is a concern about whether the courts in the UK are discharging the principles of the Constitution in their reviews of the lawfulness of other public bodies’ decisions regarding public laws. This report critically analyses the degree to which judicial review is a proper mechanism for enforcing the propositions of the Constitution in the UK by referring to public law cases brought to court by Good Law Project from the last 10 years.

Public Law Case from the Good Law Project

The Good Law Project is a political non-profit organization that uses the law to protect the environment, hold the Government accountable and encourage inclusivity in the United Kingdom. Moreover, the Good Law Project relies on donations to support its activism and quest to manifest change for a fairer and brighter future in the UK (Good Law Project, n.d.). One of the recent cases that the Good Law Project have tussled with concerns Government Ministers using private massaging tools to conduct official government businesses. To hold power accountable, the Good Law Public filed a lawsuit in court against government ministers using private emails to carry out official activities. According to the case, the Good Law Project claims that using private communications in the official government business arena impedes accountability and threatens national security since vital information and records are not readily available for public scrutiny.

Despite government policies on the use of private messaging tools, the problem needs to be adequately addressed since the policies fail to clearly outline the circumstances to which political leaders are allowed to use their private email accounts. The Good Law Project was not satisfied by the decision of the High Court and Court of Appeal ruling in favour of the Government and opted for an appeal hearing in the Supreme Court. Ministers using personal messaging tools such as personal email accounts or mobile phones and instant messaging services such as WhatsApp 24-hour auto deletion tool is detrimental to the public since less formal follows can be done. Therefore, there is a likely need for persistence from the Good Law Project and any organization or person obligated to keep the Government in check for transparency (Private emails, public Accountability? 2023). A different article (A dark day for Accountability, 2022) by the Good Law Project revealed the names of the ministers who apparently use private communication channels.

Moreover, despite the security policy, the Court of Appeal argued that the court could not enforce the issue since it might cause political sanctions. Unfortunately, the Supreme Court dismissed the Good Law Project’s appeal against the ruling of the High Court and the Court of Appeal, testifying about the lawfulness of conducting government business using private communication channels. Therefore, the Good Law Project asserts that Ministers are bound to repeatedly use personal messaging tools, which breaches the Government’s policy against using personal communication channels in formal settings (Private emails: An update, 2023). In the United Kingdom, ministers are appointed by the prime minister from the House of Lords and the House of Commons, meaning they are part of the executive. Considering the case scenario presented by the Good Law Project, the fact that ministers are using personal messaging tools to run government-related business implies that they deter public scrutiny and, ultimately, the transparency of the cabinet.

The Government Vs Transparency and Accountability

Constitutional conventions obligate the Government to publish details of ministers’ operations with external organizations in their respective departments. Nevertheless, the Government has assured transparency by enabling the public to demand accountability from public bodies and politicians regarding public expenditure in its Transparency Agenda. According to (Government Transparency Agenda – Gov.Uk, n.d.), the Government of the UK committed to upholding transparency, stating that central Government Information, Communication and Technology (ICT) must all from July 2010 be published online. Moreover, tender documents from September 2010 for contracts over £10,000 are to be availed on a single website accessible to the public. Apart from contracts, detailed business plans, travels and meetings, and departmental organograms, information should also be released from departments to the public.

The hems of transparency transcend central government departments to Non-Departmental Public Bodies (NDPB) such as Health and Safety Executive (HSE). Although the Government claims that transparency is assured and public bodies are accountable to the public, the case presented by the Good Law Project, which represents public interests, shows otherwise. Moreover, since the whole judiciary system ruled in favour of the Government in that particular case, it raises questions on whether judicial review is a trustworthy mechanism for enforcing the constitutional principles of the United Kingdom.

Final Argument

According to the evidence presented in court by the Good Law Project (Good Law Project, n.d.), there is a mismatch between the Government claiming to be transparent and the reality of what happens in the departments governed by the ministers. Ministers that use private communication channels while engaging in government operations make it hard for the public to audit their activities. Unfortunately, Ministers can only be trusted if they are willing to allow total transparency to the public by using public communication or decline to give out their phones for scrutiny. The possibility of engaging in corruption, illegal business, nepotism, or any other undemocratic activities is high when Ministers use personal email accounts to carry out formal government projects. Furthermore, when Ministers use private emails and limit access to information on their operations to the public, contracts will not be contested relatively by the private sector, which means democracy is undermined in that sense. Therefore, since the judicial review condoned the Ministers’ use of private emails and other communication channels, it is a less effective tool for imposing principles of the UK Constitution.

Moreover, there are implications that the principle of separation of power and independence of arms of Government by the Constitution is weak in the UK since the executive influences the decisions of the judiciary, which is supposed to be an independent arm of Government. The Constitution in the UK is supposed to govern the relations between the judiciary and the executive; however, the Good Law Project case implies that the relation between the two arms of Government disregards the Constitution. If the Constitution had been adhered to considering the evidence provided by the Good Law Project, then the court would have ruled against the ministers and taken legal actions to curtail the use of private messaging while handling government dealings or punished the perpetrators in that case.


Although the Judicial review has done its best to enforce the principles of the UK constitution, its efforts are still lagging in archiving and sustaining complete democracy in the United Kingdom. However, judicial review was only an effective instrument for executing the constitutional conventions if it was less influenced by other public bodies such as the legislature and the executive. Fortunately, independent private organizations such as the Good Law Project have proven to be relentless in the quest to keep public bodies accountable to the public. Such organizations do an excellent job of upholding democracy in the United Kingdom since they do their best to keep the Government in check. Therefore, apart from judicial reviews, other tools that can effectively enforce the principles of the Constitution in the UK are independent political non-profit organizations.


Good Law Project (no date). Available at: (Accessed: April 18, 2023).

Private emails, public accountability? (2023) Good Law Project. Available at: (Accessed: April 18, 2023).

A dark day for Accountability (2022) Good Law Project. Available at: (Accessed: April 18, 2023).

Private emails: An update (2023) Good Law Project. Available at: (Accessed: April 18, 2023).

Government Transparency Agenda – Gov.Uk, (no date). Available at: (Accessed: April 18, 2023).

The Employee Handbook Essay Sample For College

The honesty, sound judgment, and integrity of the employees, officers, and directors are vital to the company’s reputation and success. The employee handbook entails a resource compiling rules, expectations, and requirements that guide employees and give answers to common questions. It acts as a tool to regulate business relations and solve conflicts that emerge in the company. It also provides guidance and information related to the organization´s history, mission, values, policies, procedures, and benefits in a written format. (Van Zanten & Van Tulder, 2018) Notably, it is not a mere list of the rights and responsibilities of the employee but rather a reflection of the company’s culture and ethical principles. Eventually, this builds an organizational culture and creates a productive or unproductive working environment. Therefore, creating and implementing a company handbook is significant because it improves consistency and clarity in the company, ensures compliance and risk management, empowers employees, and fosters the formation and promotion of an effective culture in the company.

The employee handbook offers the backbone of the business by promoting consistency and clarity in company procedures. This is because the company book incorporates company policies, a mission statement, a vision, values, and other conditions of employment for the employees (Bogers et al., 2018). Describing what the employees are expected to do in the company is made easy by the company handbook, as staff understands their responsibilities. It can cover a range of policies such as attendance expectations, employment benefits, use of company property, and procedures to request time off duties. Employees should show integrity and professionalism for the firm’s reputation and standards. The expected behaviour should be aligned with the nature of the profession itself (Van Zanten & Van Tulder, 2018). Therefore, the employee handbook promotes consistency in its application because it details workplace procedures. The managers and those in control use this document to answer employee questions regarding the firm’s policies. Thus, this ensures fair treatment for all staff in line with company policies.

In addition, the employee handbook ensures reduced risk and legal liability in the company. A well-written employee handbook and written policies help reduce liability risks since they are the manual for all company policies and procedures. It is a safety net that ensures all employees are treated fairly (Bernile et al., 2018). In case of a national emergency due to a pandemic, the policy provides for paid leave according to the act. Employers are supposed to comply with the new rules as employees understand their rights. Notably, they protect the firm against costly discrimination and claims of favouritism. The lack of written rules on vital issues such as harassment, paid leave, and termination exposes the company to liability lawsuits. Therefore, the employees are concerned with how the company can handle complaints to avoid a situation of noncompliance and, thus, expensive lawsuits. Also, it assures the protection of the overall company reputation and brand image to the external stakeholders. Customer service should be the company’s most valuable asset, and responding to concerns or complaints from stakeholders should be a priority to protect the company’s reputation. Customers love it when dealing with someone who solves their issues instead of creating them and making their life hard (Van Zanten & Van Tulder, 2018). Complying with legal issues and managing risks that might occur in a company ensures that the firm only takes part in activities and business operations as stated in the certification of operation. Therefore, these documents together serve as vital legal protection for the company.

Moreover, the employee handbook creates a sense of trust and security in the human resources department through employee empowerment. Every firm has unique policies and procedures, and this makes it challenging for new employees to approach certain issues (Bernile et al., 2018). However, an employee handbook empowers employers as they make sure their employees are familiar with firm procedures and follow them to the letter. An employer finds it fulfilling when the workers are comfortable approaching their leaders whenever there is an issue in the workplace. Therefore, this document provides a point of reference in times of need, thus fostering trust and security in the human resource. It upholds and improves responsibility and professional accountability among the employees. Their general responsibilities on safety, reporting, and timekeeping are communicated. The handbook clarifies to whom an employee should report anything in case a certain situation comes up (Bogers et al., 2018). For example, in case there is a workplace violation and a report should be given, a handbook can detail which management section the employee can turn to and designate another person in case the employee disagrees with the initial decision. Therefore, this improves a sense of ownership of the firm among the employees in the company.

The employee handbook helps promote diversity, inclusivity, and equality in the organization by forming and promoting an effective culture in the firm. Introducing the workers to the company’s core values, mission statement, and culture is among the most vital aspects of the employee handbook (Bernile et al., 2018). This helps in solidifying the commitment to open communication and a meaningful workplace culture. As a result, this will attract top talent and help retain the best employees. Also, facilitating a healthy company culture helps foster a sense of pride and belonging to the workplace, so employees can put these abstract principles into practice. Notably, the introduction part of the handbook gives the context for how the firm was established. This helps the employee identify the foundational stories of the business and eventually helps them fit with the culture. Encouraging and rewarding employee participation and engagement in the firm helps promote a good culture in the company. This will increase productivity, which is the main expectation from the employer. Successful companies understand that an engaged employee translates into increased business benefits. Devoting well-deserved attention to people who are willing to keep the company operating every day makes the organization make high profits through improved productivity, customer loyalty, and employee retention (Bogers et al., 2018). Motivated employees can be more creative and innovative, work efficiently, and handle work-related problems calmly. Therefore, the employee handbook creates and enhances a suitable tone that is used in the organization.

To sum up, a well-defined employee handbook and rules that are used consistently help employees thrive and the business. A consistent and clear employee handbook ensures effective management through clear policies and makes employees reliable in their profession and experience. Protecting the company’s reputation and brand image to the stakeholders is important because a poor image tarnishes the brand and reduces the number of clients who believe in it. Creating and implementing a company handbook is significant because it improves consistency and clarity within the company, ensures compliance and risk management, empowers employees, and fosters the formation and promotion of an effective culture within the company. The employee handbook should ensure that employees are motivated, engaged, and empowered.


Bernile, G., Bhagwat, V., & Yonker, S. (2018). Board diversity, firm risk, and corporate policies. Journal of financial economics, 127(3), 588-612.

Bogers, M., Chesbrough, H., & Moedas, C. (2018). Open innovation: Research, practices, and policies. California management review, 60(2), 5–16.

Van Zanten, J. A., & Van Tulder, R. (2018). Multinational Enterprises and the Sustainable Development Goals: An institutional approach to corporate engagement. Journal of International Business Policy, 1, 208-233.

Report On The Assessment Of Liberty Mutual (LBTY) University Essay Example

Executive Summary

This report analyses Liberty Mutual (LBTY), a global insurance provider headquartered in Boston. As an insurance provider, the performance of LBTY is highly susceptible to macroeconomic trends in the US. Before venturing into the effects of the macroeconomic factors on the performance of the company, an evaluation of the company’s performance over the previous five years was provided. The insights indicated that the company had good financial health even though its equity declined in 2022. The exchange rate, interest rate, GDP growth rate and inflation rate. Based on the analysis, the US experienced GDP growth, and increasing inflation and interest rates presented potential negative consequences for the company.

The high rates of inflation and declining GDP growth prompted the proposition of the Federal Reserve to increase the rates. This was aimed at reducing the inflation rates in the long term. The implications of the increasing interest rates on LBTY are provided, besides the implications of climate-related risks. After the analysis, the issues and challenges identified were used to develop recommendations to provide direction for the company’s future operations.

1. Introduction

This report analyses Liberty Mutual (LBTY), a global insurance provider headquartered in Boston. This report provides a critical assessment of the performance of Liberty Mutual (LBTY) to identify some of the key issues in the current economic climate in the US that affect the operation of the company. The economic environment contains factors such as exchange rate, interest rate, GDP growth rate and inflation rate which significantly influence insurance companies’ performance. These macroeconomic trends are associated with either an opportunity or risk to the business based on how they affect its operations and consumer trends. The report also assesses the influence of climate-related risk on financial institutions’ outcomes while focusing on how the factor could affect the performance and operations of the exchange rate, interest rate, GDP growth rate and inflation rate. This report is therefore important in determining the performance of LBTY in line with the prevailing macro-environment factors in the US. These outcomes are therefore important in plotting the way forward for the company while enhancing its capacity to overcome the oncoming challenges and take the emergent opportunities. Based on the descriptions above, this report aims to meet the following objectives:

  • To provide a summary of the current performance of LBTY
  • To provide an assessment of the economic environment and its impacts on the performance of LBTY
  • To assess the monetary and policy regulations in the US and their influence on LBTY operations
  • To provide an analysis of climate-related risks and what they mean for the future of LBTY
  • To provide recommendations to overcome the challenges and issues identified through the analysis.

2. Company Overview

Liberty Mutual (LBTY) was developed in 1912 and is headquartered in Boston. The company is the sixth-largest casualty and property insurance provider globally. In 2021, the company ranked among the Fortune 100 corporations. The company operates in 29 global economies employing more than 50,000 people with an annual consolidated revenue of $50.0 billion as of the 2022 financial year. The company offers a wide range of insurance services and products, including “personal automobile, homeowners, specialty lines, reinsurance, commercial multiple-peril, workers compensation, commercial automobile, general liability, surety, and commercial property” (LMG, 2023).

The consolidated financial statements of the company over the past five years indicate that revenues of the company experienced a sustained increase from 2018 to 2022, as indicated in the figure below. The revenues despite the sustained increase, the smallest increase in revenues was recorded between 2019 and 2020, which could be explained by the impacts of the COVID-19 pandemic in the US.

Financial performance of Liberty Mutual. Compiled by the author with data from

Figure 1 Financial performance of Liberty Mutual. Compiled by the author with data from (LMG, 2023)

Moving to the debt and equity balance, LBTY had higher equity across the five years. The company’s equity increased from 2018 to 2021 before experiencing a decline in 2022 at a time when the company’s debt increased to $10,053 million. The decline in equity and increase in debt in 2022 could be explained by higher reinvestment levels. Based on the data presented above, LBTY had adequate financial health over the five-year period.

3. Economic Environment and Asset Allocation

  • Economic Factors Influencing the Performance, Return and Risks of the Company

The performance of Liberty Mutual (LBTY) is affected by a variety of macroeconomic factors. It is therefore important to acknowledge the influence of exchange rate, interest rate, GDP growth rate and inflation rate on the performance, return and risks experienced by LBTY. Slow GDP growth negatively affects firms operating in the financial sector. The US GDP experienced a decline from 5.90% in 2021 to 2.10% in 2022 (United States GDP Annual Growth Rate, 2023). The slow economic growth indicates the low contribution to the insurance schemes with a low entrepreneurial attitude which negatively affects the returns of the insurance companies (Peleckienė et al., 2019). Besides GDP growth, inflation in the US experienced an increase in 2021, reaching a high of 9.06% before starting to decline in 2023 reaching 4.99% as of March 2023. The inflation rate in the US remains above the 2% targeted by the Federal reserves. The high inflation negatively affects investment which is a risk considering that the inflationary environment negatively affects insurance investment. Interest rate risk is a key determinant of the profitability of the insurance companies. The trends in the US interest rates indicate that it is projected that the interest rates will increase by 4.25 in 2024, indicating that the value of fixed-income investments will decrease hence reducing the insurer’s profitability (Maverick, 2022). LBTY also experiences foreign exchange risk in that the fluctuations in the dollar exchange rates increase the company’s potential to lose money on international trade (Avdjiev et al., 2019).

  • Does the company have more rate-sensitive liabilities than rate-sensitive assets? What will happen to its net interest margin during rising interest rates?

Rate-sensitive liabilities rate to the interest-bearing liabilities in that their values depend on the interest rate trends (Möhlmann, 2020). The rate-sensitive liabilities are revalued or repriced with changes in interest rates. The rate-sensitive assets include the assets whose values are responsive to interest rate fluctuations in that they are revalued or repriced with changes in interest rates (Möhlmann, 2020). The case of LBTY indicates the possession of more rate-sensitive assets, which explains the higher exposure of the company to the changes in interest rates from the assets side. In the 2022 financial year, LBTY had $160.3B in consolidated assets compared to $138.108 billion in consolidated liabilities (mutual liberty group, 2023).

The rate-sensitive assets owned by LBTY include equity securities, mortgage loans, fixed maturities and deferred tax assets (mutual liberty group, 2023). In contrast, the rate-sensitive liabilities by LBTY include Short-term debt, Long-term debt, unearned premiums, deferred tax liability, future policy benefits and d claim adjustment expenses, among others.

4. Monetary Policy and Regulations

  • Consider the current economic conditions, including inflation and economic growth. Do you think the Central Bank should increase, reduce, or leave interest rates at their present levels? Would the Central Bank be more concerned about increasing economic growth or reducing inflation?

The economic conditions in the US indicate a decline in GDP growth amidst growing inflation (Matheson & Starvev, 2014). The current trends indicate that the interest rates in the US are increasing while the inflation rate is declining. Based on the conventional economists’ view, an increase in interest rates translates to lower inflation (Peleckienė et al., 2019). The statement provided above is explained by the view that the cost of borrowing increases with an increase in the interest rates reducing demand within the economy which increases supply translating to lower inflation.

The high-interest rates affect inflation in various ways. The increasing interest rates on the inflation rates are through the bank-balance-sheet, credit and exchange rate mechanism. In this case, increasing the Federal funds rate would increase the cost of borrowing hence a decline in the aggregate demand in the economy, pulling back the inflation rates to the desired levels (Matheson & Starvev, 2014).

In this case, the Federal Reserve would be more concerned with lowering inflation. Inflation targeting is important to keep the prices within the economy stable, which will, in the long term, keep the economic growth of the US stable (Hellwig, 2014). Reducing the inflation rate back to the target of 2% to stimulate the economic output in the country, considering that the US has experienced a decline in economic growth between 2021 and 2022. Based on the discussion provided above, the interest rates should be increased.

  • What is your forecast of how recent, existing or potential regulations will affect the company’s performance?

The increasing interest rates are in response to the inflationary pressure in the US at a period where high-interest rates exist in tandem with high inflation. The announcement of the quarterly rate by up to 25 basis points in March 2023 concerning the economic conditions could immensely affect the operations of LBTY (PricewaterhouseCoopers, 2023). The higher interest reduces the cost of rate guarantees just as it affects the reinvestment risk. A sharp rise may manifest into disintermediation risk with a negative influence on the company’s balance sheet. Additionally, the rising rates will increase the capitalization ratios, where the insurer provides long-dated interest guarantees. The insurer will therefore be expected to divest some of the interest sensitive-assets to avert the consequences of the rising interest rates (Seltzer, 2022). Finally, the increasing interest rates in the US amidst the fluctuation in the equity markets will reduce the attractiveness of equity-indexed annuities and life insurance, where the insurer will be expected to provide a “substantive interest rate guarantee” (PricewaterhouseCoopers, 2023).

5. Sustainability Prospects

  • Discuss how climate-related financial risks are impacting the financial sector. How might your chosen company be negatively affected by climate change?

Climate-related risks are becoming a reality for companies operating in the financial sector, even though measuring climate change economic costs is still an issue (GRAPPA et al., 2019). The costs of changing weather patterns affect the financial sector in two key ways: physical and transition risks. Physical risk arises from damage to property, land, and other infrastructure. Financial risks often materialize directly for financial institutions based on how they affect countries, households and corporations affected by climate shocks. The financial institutions also experience the impacts of these physical environmental risks indirectly based on how they affect the wider economy and their shocks on the financial system. The heightened exposure to the climate is related to a lower value of assets besides an increased likelihood of loan defaulting, which will negatively affect the performance of LBTY (Feridun & Güngör, 2020). Climate change also increases the risk of some accidents, such as fires which could affect multiple institutions simultaneously. The physical risks manifest in both the liability and asset sides of the financial sector institutions where the insurance policies may draw severe and higher claims than initially anticipated.

Transition risk from the climate manifest from changes in environmental and climate policy within a region or a country, the market sentiment, consumer adjustment and adjustment to carbon regulations. Transition risks affect LBTY’s asset side, where losses are mostly incurred where the model of the firms does not follow environmental policy directives. The firms which have not adhered to the climate policies could experience a decline in their income amidst an increase in funding costs.

  • What might be the company’s opportunities and challenges for green and sustainable finance?

For the case of LBTY, the climate-related financial risks can potentially increase the insurance claims due to environmental policy change to severe levels at a higher frequency than expected. Additionally, the growing incidences of natural disasters pose the challenge of increasing the insurance cost or even resulting in unavailability for areas considered highly prone to these natural disasters (GRAPPA et al., 2019). Therefore, the increased cost of insurance may make LBTY less diversified, as diversification could increase the likelihood of experiencing insurance claims that were initially perceived as uncorrelated due to the effects of floods and droughts.

The climate-related financial risks provide avenues for LBTY as an insurer to acknowledge the potential impacts of climate change on their financial stability (Feridun & Güngör, 2020). The knowledge generated from such cases is important in developing greener financial systems with adequate supervision and monitoring new policies. The large impacts of weather-related issues on asset prices also pave the way for LBTY to champion improved policies that recognize and adapt the systemic climate risk.

6. Conclusion

This report provides an assessment of the performance of LBTY, factoring in the current economic climate in the US. The economic environment factors with the strongest influence on the performance of LBTY included factors such as exchange rate, interest rate, GDP growth rate and inflation rate. Based on the analysis, the US experienced GDP growth and increasing inflation and interest rates, which negatively present potential negative consequences to the company’s operation. The exchange rate risk is also high with the fluctuations in dollar value. The analysis also indicated that it had more rate sensitive-assets than its rate-sensitive liabilities. The monetary policy and regulations evaluations indicated the need for the government to increase the interest rates to reduce consumption in the domestic economy to drive down the inflation rates. These trends are in line with the growing interest rates in the US, which present diverse implications for LBTY. The analysis indicated that the growing interest rates would increase the potential for disintermediation risk besides increasing the capitalization ratios of the company for the long-dated guarantees. The pressures mentioned above indicate the need for LBTY to divest some interest-sensitive-assets. The high rates will also affect the attractiveness of equity-indexed annuities for the company. In relation to the sustainability prospects, the report acknowledged the potential impacts of climate-related risks on firms within the financial sector. The climate-related risks that influence LBTY were explained based on the physical and the translation risks, which can increase the insurance claims more than anticipated. In response to the issues highlighted above, various recommendations are provided to respond to the diverse risks that could affect the operations of LBTY in the short, medium and long term.

7. Recommendations

The recommendations above are based on the analysis of LBTY and its environment. The recommendations are aimed at providing the way forward for the company based on the outcomes of the analysis.

The first recommendation is based on the impacts of the monetary policy and regulations. Despite an increase in the interest rates in the US, the inflation rates are expected to remain high in the foreseeable future, an issue which concerns the performance of LBTY. The claim costs have increased in the short term and are expected to continue in the long term, provided the inflation rates remain high. The inflation rates also lead the premiums, increasing the potential of asset-liability mismatch within the company. Although the changes in the interest rates are expected to be gradual, for LBTY to mitigate the disintermediation risk, it recommended that the company should price more frequently and resent the guarantee rates as a response to the changes in the book value guarantees compared to how it behaved previously (GRAPPA et al., 2019).

The fluctuating equity markets and increasing interest rates are expected to reduce the attractiveness of equity-indexed annuities and life insurance in the short and medium term (GRAPPA et al., 2019). In line with the increasing rates, it is recommended that LBTY provide substantive interest rate guarantees when issuing insured products to boost its position in the market.

The second set of recommendations comes from sustainability prospects analysis of LBTY in relation to climate-related financial risks. The analysis indicated the likelihood of risks from climate-related events, which could make insurance claims severe and at a higher frequency. To mitigate this risk, it was recommended that LBTY mobilize resources to adapt itself to respond to the price signals by ensuring the company has an improved capacity to respond to changes in externalities (PricewaterhouseCoopers, 2023).


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