The Last ‘Mystery’ of the Financial Crisis


“As you know, I had difficulties explaining ‘HOW’ we got to those numbers since there is no science behind it,” confesses a high-ranking S&P analyst. “If we are just going to make it up in order to rate deals, then quants [quantitative analysts] are of precious little value,” complains another senior S&P man. “Let’s hope we are all wealthy and retired by the time this house of card[s] falters,” ruminates one more.

Rolling Stone Mobile – Politics – Politics: The Last Mystery of the Financial Crisis.

Why not “constructive transparency”?


I recently came across a very interesting article that brought to my attention a phrase I hadn’t come across before: constructive ambiguity.

Isn’t that an oxymoron???

The article is here and it touches upon a topic and writers I have written about before in relation to business as war. If you like you economics with a social conscience and a philosophical perspective Ashwin’s your man.

“The interaction between the market participants, and for that matter between the market participants and the regulators, is not a game, but a war.”

Rick Bookstaber

However, in this article ‘constructive ambiguity’ was being used in terms of preventing moral hazard within a regulatory regime.

That’s when it struck me! Why not constructive transparency?

transparency(1)

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Transparency the price insurance can’t afford:: MP’s have claims management companies in their sights


As I have been saying for several years, when it comes to TRANSPARENCY for the insurance industry, “resistance is futile”!!!

Whether the current concern is broker commission disclosure, OFT investigations in pricing and activities of the motor insurance market, the collapse of Merlin Loss Adjusters, appalling customer service or Loss Assessors being sent to prison THE MESSAGE IS CERTAINLY TRANSPARENT…but, for how much longer can the industry remain in denial?

The decision of government business managers to schedule a three hour backbench debate next Thursday (8 November) on the Regulation of Claims Management Companies shows the level of concern across all parties at the activities of these firms, especially in relation to personal injury claims and payment protection insurance (PPI) compensation.

via MPs have claims management companies in their sights- 01 Nov 2012 – Post Online Blog.

Loss assessor jailed:: a rare but welcome move


If this were a sign of things to come, I suspect that there would be many within the ‘Claims Management’ industry who would be quaking in their boots! It has given me a novel idea for a new business though. How about I set up an operation that, for a nominal fee, properly reviews settled losses and takes a percentage where amounts above a certain threshold where internal fraud has been perpetrated!

I know exactly the type of claims and organisations I would start with because they aren’t all out of business and many of the ‘professionals’ who have knowingly or unwittingly played their part are easily recognised.

Still, grateful for small victories like these and the ongoing efforts of IFB…onward and upward!

A recent article regarding the failure of Merlin and some dubious industry practices has attracted an incredible amount of interest and comment. It led to an interview that appeared in the insurance press [Post Magazine].

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Lessons from Nature:: Ecological Thinking for Business Transformation


Most people in business subscribe to an outdated world view, a perception of reality inadequate for dealing with the volatile and globally interconnected business world.  What is required for the health and vitality of our businesses and economies is a radical shift in our perceptions, our thinking and our business behaviour.  We are witnessing a change in business paradigm from one suited for the industrial era to one suited for the interconnected era [Digital Age].

At the core of this paradigm shift is a perception shift from ‘seperatedness’ to ‘interconnectedness’

 

via Ecological Thinking for Business Transformation « The Nature of Business.