Tuesday, 15 November, 2011
Please forgive me for not reaching for the paper tissues THE real story is that helping banks is hurting …SOCIETY!
Without doubt, the activities of billions of ordinary citizens did not give rise to systemic risk! FACT!
Do we really need to ask, in whose interest is it for the insurance industry to tell only half a story?
OK, so the language is clever “…traditional insurance activities do not give rise to systemic risk”. Hard to argue with. But this communiqué smacks of insurers’ girding their loins in anticipation of the fallout from further, inevitable, global financial turmoil.
Presumably choosing to distance themselves and pointing their fingers at the banks is intended to stave off the threat of further regulation. Even if that is, ultimately, unsuccessful, it may serve to delay unwanted scrutiny and provide the opportunity to adapt the current model. It could also be touted to hard-pressed businesses as a “justification” of a potential tsunami of premium increases that may follow the next financial earthquake: growing seismic activity in the markets serve as a warning.
The insurance industry is, hardly, in the “innocent bystander” category!
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