Dots - What Happened in the 1980s?
- Dorfman
- David Rogers
- Chief Deputy, Office of the Insurance Commissioner
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- [Both Dates PDF-629p-GooglePlay, 0428-No Video / 0505-VIDEO-CSPAN- Insurance Policy Transfers]-
The life insurance industry takes great pride in its survival of the depression, although it seems to me that it was bailed out by government intervention.
- I wonder if the time may come again, say if the prime rate goes to 38%, that the life insurance industry will need to be bailed out in some fashion.
- I do not know what that fashion might be, but that is why I am curious about the nature of the discussions of April 1980.
-- Joseph Belth
1981 - SOA - The Life Insurance Business --- The View of Consumerists, Society of Actuaries - 18p
- 1990-IB, NAIC Proceedings - Presentation By James P. Corcoran, Superintendent of Insurance, State of New York -Before the Insurance Committee of the Organization for Economic Cooperation and Development (OECD) - Paris, France - October 27, 1989 - (p868)
- Until recently, Life insurance was regarded as a stable industry where little change took place, either in the policies offered to the public or in the regulatory environment in which insurers operated.
- Investments, subject to strict qualitative and quantitative standards, were generally made for the long term in traditional vehicles such as bonds, stocks and mortgages.
- Over the past decade, however, many revolutionary changes have taken place. Life insurers are now competing with banks and brokerage firms for a piece of the financial services pie.
- Each player contends that it wants a "level playing field," but in fact seeks to gain some competitive advantage over the other.
- Life insurers have been placing greater emphasis on financial services and educating their agents to be financial planners as well as life insurance experts.
- Competition in financial services has resulted in the introduction of new products which offer a variety of investment incentives coupled with an insurance component.
- Sophisticated consumers are bypassing the traditional life products for these new "interest-sensitive" products, many of which are backed by vehicles other: than the traditional bonds, stocks and mortgages.
- High risk-high yield obligations, leased securities and futures contracts are now common components of the portfolios of our life companies.
- All of these changes have, of course, added increased strains on the life insurance community
- Until recently, Life insurance was regarded as a stable industry where little change took place, either in the policies offered to the public or in the regulatory environment in which insurers operated.
The 1980s ushered in the era of universal life policies.
- While such universal life policy features as flexible premiums, current and guaranteed cost of insurance scales, guaranteed maturity funds and guaranteed maturity premiums added a few wrinkles to the calculation process, the fundamentals of generating policy reserves remained fairly intact.
- In contrast, today’s products have become much more complex.
2013 01 - CIPR Newsletter