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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Mac who wrote (13602)	1/19/1999 5:03:00 AM
From: R. Bond	Respond to of 13949

>>Insurance executives admit almost any claim submitted in relation to the year 2000 will be contested in court.<< The Guardian -- Monday, January 18, 1999 Insurers' Fears Grow Over Bug Lisa Buckingham, City Editor The insurance industry is starting to monitor reported accounts of leading companies to check whether auditors are raising the alarm that their business is dangerously vulnerable to the millennium bug. The latest campaign is part of the industry's increasingly desperate efforts to avoid the potentially fatal financial damage if the most pessimistic predictions of year 2000 claims are realised. Auditors now have to issue a statement assessing a company's exposure to millennium bug problems as part of its routine financial checks. Insurance executives admit almost any claim submitted in relation to the year 2000 will be contested in court. “It will be the biggest jamboree lawyers have ever seen,” said one. It is thought there is insufficient underwriting capacity in the global market to cope with “Y2K” risks, and that the problem could cause world industry to collapse. Underwriters say they are monitoring judgments of auditors to support their assessment of firms they insure. But it seems likely they will try to seek redress against accountants to recoup the cost of any claims paid. In their role as institutional investors, insurance companies have been urging companies to issue millennium bug compliance statements, and that initiative will be stepped up over the next three months. cap Gemini, the European software group, recently warned that companies which are not already Y2K-compliant have missed the deadline t come into line. Research published today be City law firm Cameron McKenna warns that businesses in central and eastern Europe pose a big Y2K thr3eat to trading there. The study showed that 87 per cent of the 1,000 firms surveyed had taken no guidance on tackling Y2K, nearly two-thirds have no strategy to deal with it and 88 per cent have no contingency plans for critical systems failure.