Confidence

  • For life insurers, the risk of a bank-like “run” resulting from loss of consumer confidence is virtually non-existent.

2016 0831 - Life Insurers Do Not Pose a Systemic Risk to the Nation’s Economy, BY DIRK KEMPTHORNE (President and Chief Executive Officer of the ACLI - [LINK]

  • Perhaps the greatest threat to the insurance industry is one of an erosion of public confidence stemming from a perceived inability of regulators, guaranty funds, and the industry itself to fully protect policyholders...

-- Daniel J. Kunesh

1991 - SOLVENCY ISSUES AND THE INVESTMENT ACTUARY, Society of Actuaries

  • GOV - Vaughan

We are seeing a real crisis in confidence:

  • That, in my mind, is probably the worst thing that could happen.   
  • There is not a company in the country that can stand runs that Commissioner Weaver was talking about, where people ask for $1 billion in policy loans and surrenders in a 2-week period.  <page 13>

---  William McCartney, William, Director of Insurance, State of Nebraska and Vice President, National Association of Insurance Commissioners <NAIC>

1991 - GOV - REGULATION OF INSURANCE COMPANIES AND THE ROLE OF THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS - 286p

  • The disaster we fear is the looming crisis of confidence, of lost credibility, of spreading fear among the public and, ultimately, of a "run on the bank” as policyholders pull their money out of the insurance industry. (p160)

--  Prepared statement:  MARTIN D. WEISS, PRESIDENT, WEISS RESEARCH, INC ., WEST PALM BEACH, FL

1991 - GOV - Insurance Company Solvency