- For life insurers, the risk of a bank-like “run” resulting from loss of consumer confidence is virtually non-existent.
Life Insurers Do Not Pose a Systemic Risk to the Nation’s Economy, BY
- 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>
- 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