Product Safety Engineering A Why is the increase in insuranc

Product Safety Engineering:

A. Why is the increase in insurance premiums more of a problem that should be resolved by an entire industry rather than by a single manufacture?

B. List ten types of losses that can result when a product is involved in an accident.

Please do no write your answer in a paper. Write here please!!

Solution

Health care spending continues to be one of the top concerns for manufacturers, and recent increases in health insurance premiums is not good news for them.In the most recent National Association of Manufacturers (NAM) Manufacturers’ Outlook Survey, 74.1 percent of respondents mentioned health insurance expenses as their top business challenge.

As much has been made of the recent slowing of health care inflation in the larger economy, with some suggesting that the United States has begun to “bend the cost curve.” Yet, it might be too early to claim victory. Slower health care inflation could be a temporary phenomenon, with costs expected to rise in the coming years.

Total national health expenditures accounted for 17.2 percent of GDP in 2013, up from 12.1 percent in 1990 and 13.4 percent in 2000. With data forthcoming for 2014, this share is predicted to rise to 17.6 percent, with continued gains pushing health spending to 19.3 percent of GDP by 2023. National health expenditures should increase from $2.9 trillion in 2013 to $5.2 trillion in 2023, a 78.2 percent increase.

In 2023, the 40 percent employee benefits tax will affect 82 percent of businesses and that\"s where it impacts most .

small manufacturers dont make much profits as compared to large business and with this trend going on it is going to hamper their profitability in long run .unlike large manufacturers who have enough capital and resources so that they can get through these extra added costs small manufacturer will find it hard to survive so and this is not an issue that can be resolved by a few or a group of manufacturers of small rea but it needs particpation from all the stakeholders so that the business dont suffer .

If this feature cpontinus then it will directly impact people looking to start their own venture and thus directly impacting the business and denying jobs to people.

B A well-designed product can still harm consumers. Defects in manufacturing occur when a product is improperly manufactured and departs from its intended design. For example, a bottle of prescription drugs may become contaminated at a processing facility or a metal hip replacement may prematurely break due to substandard manufacturing practices. When these types of manufacturing defects cause injuries to consumers, the manufacturer can be found liable.

If a poorly manufactured product left the factory and caused injury when used for any of its intended purposes due to the defect in manufacturing, the manufacturer has to pay for any injuries. This is an example of the legal principle known as strict liability. and when proved in court it can prove costly to manufacturer.

Major losses involved when faulty product causes an accident

1 loss in image of product or company

2 financial loss

3 loss in stocks with investors pulling out

4 company ambition to expand to new areas will be impacted

5 loss of time

6 product to be designed yet again after knowing cause of fault

7 losses due to people suing the company

8 loss in ratings of company

9 revenue of company impacted due to people unwilling to buy company other products

10 restrictions on processes of company due to government