Bank deposit insurance has nearly arrived in China

china insurance industry

The country is close to launching the coverage that could open up free competition by banks for customers. China is drawing ever closer to the launch of a bank deposit insurance system that has long been anticipated but that has yet to have been accomplished, and that could completely overhaul that country’s financial sector. This change could hike the risk level in the banking sector and could make it possible for immense future opportunities. By introducing a system of bank deposit insurance, it could mean that there may one day…

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EU insurance regulations may be put on hold

Insurance industry News

Insurance regulations may be delayed for up to two years European insurance companies could get a break from the looming insurance regulations that are coming from the European Union. These regulations, which will cause serious changes in the European insurance industry and could push some smaller companies out of business, are currently scheduled to take effect in January, 2014. The insurance regulations put strict capital requirements on insurance companies and have been the source of controversy for some time. Now, a top European insurance regulator is working to have the…

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European Commission plan rejected by Germany

European Commission

European Commission finds opposition to banking plan German lawmakers have rejected a proposal coming from the European Commission concerning the ongoing financial crisis enveloping Europe. The European Commission has been working to solve the issues caused by the financial crisis, but has made little headway. With the help of the insurance industry, however, some problems have been resolved. Some of the world’s largest insurance companies have agreed to provide coverage and issue bonds that will help countries recover from the financial crisis. Not all of the European Commission’s proposals have…

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Libor scandal could have long-standing consequences

EU Insurance Plan

Insurers face heavily financial losses as the result of the Libor scandal Many of the world’s largest insurance and financial institutions may be liable for hundreds of millions of dollars over the next several years due to the ongoing Libor scandal. Libor refers to the London Interbank Offered Rate, which is an average interest rate estimated by the leading banks of the United Kingdom. Libor has been a somewhat controversial issue for several years, but has become even more so in light of the current scandal. The scandal was ignited…

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Majority of the public believes the 2009 auto industry bailout helped the economy, despite opposition

New poll shows public opinion on bailout tactics for industry. A new poll performed by Harris Interactive, has determined that the vast majority of the American public would not support any additional insurance, construction, banking, or auto industry bailouts, and that while only a small percentage of people think that the insurance and banking bailouts of 2008 helped the economy, the vast majority feel that the auto industry bailout of 2009 (especially of Chrysler and GM) did provide an economic boost. The poll also indicated that a large number of…

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LPL Financial research identifies new opportunity for retail financial companies

The largest independent broker-dealer in the United States, LPL Financial LLC, which is an LPL Investment Holdings Inc. wholly owned subsidiary, has recently revealed a number of the main findings it has discovered through a co-sponsored study which looked into the role played by insurance and investment services customers among retail financial organizations. The study was entitled “The Value of an Investment and Insurance Customer to a Bank”. It was performed by Christine Kehrer, Kenneth Kehrer, and Peter Bielan, with the co-sponsorship of LPL Financial. Among the primary findings that…

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Too big to fail insurance corporations should be governered by different rules than the banking industry

The term “too big to fail” rose to prominence in the wake of 2008’s economic recession. Much like the effects of the recession, the phrase has lingered and has come to define certain aspects of the business world. Too big to fail is a categorization often attributed to massive corporations that have complex and expansive global business operations and deep ties with financial institutions. If these businesses were to fail, there may be disastrous implications for the global economy that go well beyond the problems born during the 2008 recession.…

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