Insurance:: GIAS “Phase II”– turning threat into opportunity


I should pay Warren Buffett a royalty (not that he needs it) for excessive use of this phrase:

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“be greedy when others are fearful and fearful when others are greedy”

But few can doubt that we are paying the price for greed. Whether we are all more fearful could be debated but we are, certainly, financially, socially and environmentally  “poorer” for the experience. Hopefully, we are “wiser”!?

For obvious reasons the financial sector is fearful of what the future holds for them because of the implications of new “mechanisms” that are intended to avoid a repeat of financial meltdown. One thing for sure is that, as much of the cost of increased regulation, falling or unpredictable margins, etc. will be passed on to customers.

How hard a sell will that be for “reputationally damaged” institutions that have, knowingly, abused the trust they once enjoyed???

How much more attractive will their actions (and subsequent inaction) make, innovative propositions, from existing competitors and new entrants look? Read more of this post