Vaughan.Crisis - Removed from Syllabus - Revision history

Graham at 14:42, 2 January 2024

2024-01-02T14:42:38Z

Graham at 14:42, 2 January 2024

2024-01-02T14:42:28Z

Graham: Created page with "===REMOVED FROM SYLLABUS: Lessons from State Insurance Regulation=== {| class='wikitable' style='background-color: lightsalmon; font-size: 24px;' |- || '''This section has be..."

2024-01-02T14:41:39Z

Created page with "===REMOVED FROM SYLLABUS: Lessons from State Insurance Regulation=== {| class='wikitable' style='background-color: lightsalmon; font-size: 24px;' |- || '''This section has be..."

New page

===REMOVED FROM SYLLABUS: Lessons from State Insurance Regulation===

{| class='wikitable' style='background-color: lightsalmon; font-size: 24px;'
|-
|| '''This section has been removed from the syllabus starting 2023-Fall'''
|}

Insurance companies fared relatively well during the financial crisis of 2007-08. This shows that the state-based system of insurance regulation with its various checks & balances is a good model. Financial systems, including insurance, are becoming increasingly globalized. Can we take elements of the U.S. state-based system and expand it to the global stage?

:{| class='wikitable'
|-
| '''Question''': identify 4 elements in building an effective global insurance regulatory system [Hint: '''TSAR''']
|}

:: '''Element 1''': '''T'''rust
::* regulators must trust each other
:::    '''U.S.''': accomplished through NAIC accreditation
:::    '''global proposal''': IMF Financial Sector Assessment Program and G20 peer review

:: '''Element 2''': '''S'''hare
::* regulators in different countries must share information
::: ''(this is the greatest challenge because domestic regulators want to protect domestic industries)''

:: '''Element 3''': '''A'''ction
::* other countries must be able to take action against an insurer
::: ''(if dissatisfied with actions by other regulators)''

:: '''Element 4''': '''R'''esolution
::* mechanism of resolution for bankruptcies
::: ''(must be fair to all countries involved)''

This list strikes me as very important. Globalization is a core issue facing all of us. ''Do we need a global '''TSAR''' for insurance regulation?''

← Older revision		Revision as of 14:42, 2 January 2024
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	I couldn't think of a good memory trick for the lists in this section, but luckily <span style="color: green;">'''marquaty'''</span> came up with one. ''(Personally, I don't like starch in my shirt collars, but I'm not a regulator!)'' Sometimes I make up a dumb story that ties everything together. And if I can't do that, I just flat-out memorize it with brute force repetition. ''(It's good to have several different strategies for learning that you can call up when needed.)''		I couldn't think of a good memory trick for the lists in this section, but luckily <span style="color: green;">'''marquaty'''</span> came up with one. ''(Personally, I don't like starch in my shirt collars, but I'm not a regulator!)'' Sometimes I make up a dumb story that ties everything together. And if I can't do that, I just flat-out memorize it with brute force repetition. ''(It's good to have several different strategies for learning that you can call up when needed.)''
−
−	~~''[[Vaughan.Crisis - Removed from Syllabus]]''~~

← Older revision		Revision as of 14:42, 2 January 2024
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	This list strikes me as very important. Globalization is a core issue facing all of us. ''Do we need a global <span style="color: red;">'''TSAR'''</span> for insurance regulation?''		This list strikes me as very important. Globalization is a core issue facing all of us. ''Do we need a global <span style="color: red;">'''TSAR'''</span> for insurance regulation?''
		+
		+	===REMOVED FROM SYLLABUS: Lessons for State Insurance Regulation===
		+
		+	{\| class='wikitable' style='background-color: lightsalmon; font-size: 24px;'
		+	\|-
		+	\|\| '''This section has been removed from the syllabus starting 2023-Fall'''
		+	\|}
		+
		+	Any regulatory system must evolve with the times. Even though the checks & balances of the U.S. state-based insurance regulatory system has functioned well in the past, we should always be striving to increase efficiency and coordination.
		+
		+	:{\| class='wikitable'
		+	\|-
		+	\| '''Question''': identify areas that regulators have <u>targeted for improvements</u> to the U.S. insurance regulatory system
		+	\|}
		+
		+	:* rating agencies: ''review reliance on rating agencies in the RBC system''
		+	:* securities lending: ''new reporting requirements for securities lending''
		+	:* unregulated affiliates: ''impact on insurers''
		+
		+	Aside from these targeted improvements, there is also concern surrounding the system's ability to interact with entities outside the system, like Congress or regulators outside the U.S.
		+
		+	:{\| class='wikitable'
		+	\|-
		+	\| '''Question''': identify the NAIC's <u>5 principles</u> that any national regulatory structure should possess [Hint: <span style="color: red;">'''STarCH'''</span>] because you need structure in your white-collar shirt as a regulator! <span style="color: green;">'' ←shout-out to marquaty!''</span>
		+	\|}
		+
		+	:: <span style="color: red;">'''S'''</span>'''tandards''': ''(2 principles)''
		+	::* uniform where appropriate but local where necessary
		+	::* set & enforce at state level
		+
		+	:: <span style="color: red;">'''T'''</span>'''axes''' & '''fees''':
		+	::* states should still be able to collect taxes & fees
		+
		+	:: → <span style="color: red;">'''ar'''</span> ← not part of the mnemonic - these are "infill" letters so that we could spell the word "starch"
		+
		+	:: <span style="color: red;">'''C'''</span>'''ollaboration''':
		+	::* encourage collaboration with international bodies
		+
		+	:: <span style="color: red;">'''H'''</span>'''olding companies''':
		+	::* state regulators should have equal standing with other regulators regarding holding companies
		+
		+	These principles are designed to encourage <u>uniformity</u> and <u>reciprocity</u>. The first 4 make sense to me but the last one about holding companies seems a bit random. You probably have to get into this topic more deeply for it all to make sense.
		+
		+	I couldn't think of a good memory trick for the lists in this section, but luckily <span style="color: green;">'''marquaty'''</span> came up with one. ''(Personally, I don't like starch in my shirt collars, but I'm not a regulator!)'' Sometimes I make up a dumb story that ties everything together. And if I can't do that, I just flat-out memorize it with brute force repetition. ''(It's good to have several different strategies for learning that you can call up when needed.)''
		+
		+	''[[Vaughan.Crisis - Removed from Syllabus]]''