Article Abstract:
Market-value accounting is fundamentally incompatible with the insurance industry, and would have a variety of negative effects if implemented. Market-value accounting assumes that all assets must be delivered immediately. Yet, insurance companies invest for the intermediate or long term to support specific liability structures. If adopted, market-value accounting would have a variety of damaging effects. For example, financial information would become much more difficult for users to understand, and the competitive position of those affected by the proposal would almost certainly deteriorate.
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Article Abstract:
The increase in older people in the US from 1996 to 2025 will create major opportunities for the private sector as public entitlement programs are not expected to continue as they have until 1996. Over 33% of the discretionary financial assets will be controlled by this group and insurance companies will be able to provide sound financial products.
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Article Abstract:
Insurance companies and agents should seriously study the needs and situation of customers when recommending and selling insurance products. Agents in the UK are required by law to assess a product's suitability for customers. In an environment of market conduct problems, product suitability is likely to become a major industry issue.
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