Can't Say - Examples
- A major problem that must be overcome with such monitoring systems is that of avoiding the self-fulfilling prophecy.
- A monitoring system that identifies high-risk behavior can actually trigger the bad luck required to actually send a company under.
- For instance, a system that identifies a life insurer as having high potential for capital losses in the event that it experiences a policyholder run may actually incite policyholders to pull their money out of the company, thus triggering a financial meltdown that would not have otherwise occurred.
1995 - JIR / NAIC - Solvency Monitoring in the Twenty-First Century, by Robert W. Klein and Michael M. Barth - 47p
AIG - 2008 Financial Crisis
Benefits, Values
- Mark J. Greene, FSA. MAAA, Supervising Actuary, New York State Insurance Department
- What I noticed was there is a requirement for in-force illustrations, and people may have thought they bought one thing and whenever you have to give them an in-force illustration with a current disciplined scale, they're going to realize they bought something else.
- I think many companies will have serious problems with policyholder retention.
- What I noticed was there is a requirement for in-force illustrations, and people may have thought they bought one thing and whenever you have to give them an in-force illustration with a current disciplined scale, they're going to realize they bought something else.
1995 - SOA - Practical Illustrations and Nonforfeiture Values, Society of Actuaries - 14p