Words – Page 18 – [BonkNote]

Disintermediation Run Disintermediation of traditional life insurance is most severe for policies sold as savings instruments. — George R. Dinney 1982 – SOA – Programs to Conserve Traditional Life Insurance Policies, Society of Actuaries – 18p When a policyholder feels deceived, the disintermediation potential is enhanced. — Allen D. Booth, a consultant in the Milwaukee office of…

Liquidity Risk We have a committee within the ACLI that has been looking into the whole liquidity question, and on the basis of those discussions, I believe there is much more liquidity in the industry today. If I recall correctly, the biggest surprise came about 15 years ago, when the first discussions were held with…

Black Swans Nassim Taleb (p60) – David Schweikert – (R-AZ) – Are we going to wake up tomorrow and find out that the shadow on the horizon, the black swan was something that because of the concentration of the way you look at the world you completely miss? 2015 1208 – GOV (House) – Oversight of…

Shadow Banking Shadow Insurance fcic Geithner imf.org/external/pubs/ft/fandd/basics/52-shadow-banking.htm IMF – Shadow Banking: Out of the Eyes of Regulators – Many financial institutions that act like banks are not supervised like banks – 2p “Shadow Banking Risk Monitor” to “Non-Bank Risk Monitor” 2016 07 – FRB- Daniel K Tarullo: Opening remarks on the theme of shadow…

Inflation 8. The growth of interest-sensitive insurance products, such as universal life, spurred by a period of high inflation and historically high interest rates. 1984-1, NAIC Proc. 1981 – SOA – Inflation and General Economic Direction, Society of Actuaries – 28p 1982 – SOA – Investment Vehicles to Cope with Inflation, Society of Actuaries – 24p…

Games, Gimmicks and Tricks Why is this flimflammery allowed to continue? Where are the laws to prevent companies from misleading people? (p3) — Senator Howard Metzenbaum (D-OH) 1993 0525 – GOV (Senate) – When Will Policyholders Be Given The Truth About Life Insurance?, Howard Metzenbaum (D-OH) — [BonkNote] It is my recollection and understanding that AG 49 was created in…

Indexing

Capital Capital – Index Capital Formation Capital Markets Capital Standards ICS – Insurance Capital Standards RBC – Risk Based Capital 1981 – SOA – Effective Use of Capital, rsa81v7n14, Society of Actuaries – 26p 1981 – SOA – Effective Use of Capital, rsa81v7n312, Society of Actuaries – 24p 1987 – SOA – Sources of Capital…

ALM – Asset Liability Matching Let me be elementary to begin. Asset/liability matching in its purest form likely means that we purchase assets such that whenever cash is needed to meet obligations, those assets will provide that cash. However, in the real world, we are going to be mismatched either because … we are not…

Competition Today, life insurers compete directly with non-insurance financial services institutions, such as banks and mutual funds. (p12) — William B. Fisher, Vice President And Associate General Counsel, Massachusetts Mutual Life Insurance Company, On Behalf Of The American Council Of Life Insurers (ACLI) 2001 0621 – GOV (House) – Insurance Product Approval: The Need for…