INTRODUCTION
Modern man tries to protect himself and his possessions against many risks like illness, accidents, death, theft and liabilities. These interests can be protected in various ways:
(a) He can take preventative measures to limit loss such as wearing a safety belt while driving a vehicle or installing smoke detectors in a factory; or
(b) He can save money and with time build up a private fund; or
(c) Co-operate with other legal subjects to collectively cover losses that have been incurred.
However, in the above three scenarios, protective measures are not adequate protection. The solution to these problems is found in a formal insurance. Insurance regulation is a dynamic, ever-evolving to achieve an appropriate balance between providing adequate consumer protection and allowing them to gain maximum returns. Given that insurers and the products being offered change over time, it is vital for the regulatory framework to keep pace with dynamics of the Life Insurance Industry.
This study explores areas where the life insurance industry has changed over time through different product offerings, globalization, evolving technology, and changes in the economic environment of Discovery Vitality Life. The study provides a framework to assist regulators in assessing which changes have been successful, which need improvement, and what needs to be addressed in the future.
INDUSTRY BACKGROUND
The South African life insurance industry has become the fastest growing and most dynamic market (nmg Consulting, 2012). Around 1730 BC, Hammurabi issued a proclamation stating that all the merchants who were participants of a caravan had to make a payment towards any damages caused by theft of the property. This type of manual assistanc...
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...des, taking its shape from the various regulatory, legal, technological and social changes of history. As the insurance industry evolved, it became increasingly global, competitive and interconnected. Insurers now compete and operate across many different international jurisdictions, whose regulatory and accounting frameworks differ.
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Presently after the accident certain change demonstrations must be set up to again settle the business sector. One of the strides that was taken was the setting up of the Securities and Exchange Commission or the SEC. The part of this establishment was to set out the business sector administers and rebuff if there should be an occurrence of any infringement of the laws. An Act called the Glass-Stegall Act was passed. This demonstration told that the business and the venture banks could no more have any relationship between them. In any case, as the time passed the government guidelines and the Glass-Stegall standard have changed all things considered. The other change that was presented was the foundation of the Federal store Insurance Corporation or the FDIC. This was intended to see that every single individual ledger was guaranteed up to $100000. (The 1929
... Capital, Corporation Finance and the Theory of Investment", The American Economic Review, vol. 48, no. 3, pp. 261-297.
How has the healthcare industry changed (pre-1983 to post 1983)? What are the implications for BD? How has BD managed to build up an 80% market share in this market? Which many competitors bigger than BD have tried to enter without success?
Business Insurance News, Analysis & Articles. Web. The Web. The Web.
Flawed financial innovations: the implementation of innovations in investment instruments such as derivatives, securitization and auction-rate securities before markets. The indispensable fault in them is that it was difficult to determine their prices. “Originate to distribute securities” was substituted by securitization which facilitated the increase in ...
In October of 1929, the American economy took a huge hit from the stock market crash. Since so much people had invested their money and time in the banks, when the banks closed many had lost all of their money and were in the deep poverty. Because of this, one of my first actions of the New Deal was the Federal Deposit Insurance Corporation (FDIC). Every bank in the United States had to abide by this rule. This banking program I launched not only ensured the safety and protection of deposits made my users of banks, but had also restored America’s faith in banks, causing people to once again use banks which contributed in enriching the economy. Another legislation I was determined to get passed...
The basic concept of insurance is the transfer of risk from one entity to another through certain conditions. Health insurance is no different, only the entities mentioned are consumer or the patient and the insurance company. In the health insurance concept, a premium is paid by the individual to the company for a year and the insurance company has to pay for the cost of healthcare for that individual. Hence the risk for the consumer is transferred to the insurance company.
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A. C. Pigou, Review of the Fifth Edition of Mashall's Principles of Economics (unimelb.edu.au) The Economic Journal, volume 17, 1907, pp. 532-5
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For the contrary the loading change (fee to cover the incurred administrative expenses) can be expensive. Also, the insurance sometime fails to meet demand providing limited protection, this insurance shortage can lead to ineffective insurance regulations. As well as, for consumer with minimum loss experience, their premium will be high, because their probability of loss is high.
In 1911, however, as a result of the outstanding debts that the company had acquired, bankers stepped in and rem...
After hours of independently researching the field of Actuarial Science, I contacted Mr. Michael Miller. Mr. Miller is the Director of Insurance Pricing at Catlin Inc., a private insurance company in Atlanta, Georgia. With a Masters of Science in Mathematics and classification as a Fellow of Casualty Actuarial Society, Mr. Miller has thrived in the field of Actuarial Science for twenty years. He has even achieved the position of President of the Casualty Actuarial Society of the Southeast.
J. David Cummins, A. S. (1999). Changes in the Life Insurance Industry: Efficiency, Technology and Risk Management: Efficiency, Technology, and Risk Management. Springer.
As a result of today’s economic climate and the recent financial market turmoil it has been highlighted that there is a need for people to start to seriously consider their financial risks. What would happen to those families, where the person that was providing the main source of income was to die before they had expected? Recently in Ireland debt levels are at an all time high and the idea of finding and maintaining a job is becoming increasingly harder and harder. As a result of this life insurance is becoming more of a need. We all have insurance in one form or another, be it auto insurance, mortgage protection, medical, liability, disability or life. It is our way of controlling our risks. In order to examine the necessity for life insurance we need to examine the risks that life insurance covers and how well these risks are covered. To do this we need to examine the different forms of life insurance.