scholarly journals The Impact of the Twin Peaks Model on The Insurance Industry

2016 ◽  
Vol 19 ◽  
Author(s):  
Daleen Millard
Keyword(s):  
Financial Services ◽  
Financial Regulation ◽  
Insurance Industry ◽  
Market Conduct ◽  
International Trends ◽  
Twin Peaks ◽  
Systemic Risks ◽  
Regulatory Approach ◽  
The One ◽  
The Impact

Financial regulation in South Africa changes constantly. In the quest to find the ideal regulatory framework for optimal consumer protection, rules change all the time and international trends have an important influence on lawmakers nationally. The Financial Sector Regulation Bill, also known as the "Twin Peaks" Bill, is the latest invention from the table of the legislature, and some expect this Bill to have far-reaching consequences for the financial services industry. The question is, of course, whether the current dispensation will change so quickly and so dramatically that it will literally be the end of the world as we know it or whether there will be a gradual shift in emphasis away from the so-called silo regulatory approach to an approach that distinguishes between prudential regulation on the one hand and market conduct regulation on the other. A further question is whether insurance as a financial service will change dramatically in the light of the expected twin peak dispensation. The purpose of this paper is to discuss the implications of the FSR Bill for the insurance industry. Instead of analysing the Bill feature for feature, the method that will be used in this enquiry is to identify trends and issues from 2014 and to discuss whether the Twin Peaks model, once implemented, can successfully eradicate similar problems in future. The impact of Twin Peaks will of course have to be tested, but at this point in time it may be very useful to take an educated guess by using recent cases as examples. Recent cases before the courts, the Enforcement Committee and the FAIS Ombud will be discussed not only as examples of the most prevalent issues of the past year or so, but also as examples of how consumer issues and systemic risks are currently being dealt with and how this may change with the implementation of the FSR Bill.

scholarly journals Blockchain technology and its impact on financial and shipping services

2018 ◽  
Vol 2 (1) ◽  
pp. 51-63 ◽  
Author(s):  
Viktor Diordiiev
Keyword(s):  
Financial Services ◽  
Global Economy ◽  
Insurance Industry ◽  
Public Institutions ◽  
Consensus Algorithms ◽  
Blockchain Technology ◽  
Huge Impact ◽  
Services Industry ◽  
The One ◽  
Traditional Industry

Introduction. Blockchain technology is becoming one of the main drivers of innovation in the global economy. Its adoption will have a huge impact on how businesses and governments operate and on the way people organize their everyday lives. Financial services industry is the one experiencing the biggest impact of the blockchain disruption so far, while financial institutions are among the first adopters of the technology. At the same time, being a relatively traditional industry, shipping has not yet seen many use cases with blockchain, but the technology is able to change this industry dramatically. Aim and tasks. As the industries of finance and shipping have huge potential in the blockchain space and often interact, determining how the blockchain technology adoption can influence the industries of finance and shipping in the future was the main purpose of this article. Research results. To fulfill this purpose, it was important to describe the origins of the blockchain technology, its main characteristics, functioning principles and consensus algorithms. Supported by the recent hype, cryptocurrencies are the biggest use case for blockchain so far, therefore, the article analyzes the largest of them, including Bitcoin, Ethereum and some others, as well as the cryptocurrency market as a whole. The level of worldwide adoption of blockchain and the overall market size are defined further in the article. Various applications in finance are also mentioned, paying particular attention to the insurance industry. Based on this information, the key areas in which blockchain can disrupt finance and insurance are identified. As the number of blockchain companies increases rapidly, the two main fundraising channels for such companies, venture capital and initial coin offering, are analyzed and compared. The ways in which blockchain may impact the shipping services industry are identified further. Conclusion. Afterwards, the article describes a number of blockchain consortia formed by public institutions and private entities to research and test possible applications of the technology across various industries and countries. While the potential of blockchain is still largely undiscovered, all the gathered information and performed research help to make a conclusion that the blockchain technology will have a big impact on many different industries, including financial and shipping services. The coming years will definitely see an exponentially growing interest in blockchain in academic and business fields, as the technology becomes more and more mainstream.

scholarly journals THE IMPACT OF THE INDUSTRIAL REVOLUTION 4.0 ON THE INSURANCE INDUSTRY AND WHETHER OF THE ASSETS AND INVESTMENTS PLAY A ROLE TO INVESTMENT YIELD?

2020 ◽  
Vol 8 (2) ◽  
pp. 345-351
Author(s):  
Iskandar Muda ◽  
Hafizah ◽  
Bunga Aditi ◽  
Hermansyur ◽  
Erlina
Keyword(s):  
Financial Services ◽  
Financial Stability ◽  
Industrial Revolution ◽  
Insurance Industry ◽  
Least Square Method ◽  
Partial Least Square ◽  
Least Square ◽  
Insurance Companies ◽  
Insurance Company ◽  
The Impact

Purpose of the study: This research aims to know the influence of the Industrial Revolution 4.0 era on the insurance industry on the side of assets and Investment insurance companies to Investment Yield Sharia Insurance in Indonesia. Methodology: This type of research is explanatory research. This type of research data is secondary data sourced from the Financial Services Authority (OJK) Republic of Indonesia period in 2016-2107. The tool of analysis in this research is the Partial Least Square method using Smart PLS statistics. Main Findings: The results are an influence of Assets and Investment on Investment Yield on insurance companies in the Industrial Revolution 4.0 era. In the era of the industrial revolution, 4.0 potential insurance improve economic growth through several aspects, namely promote financial stability. Facilitate trade and commercial activities. mobilize domestic savings. Offering a variety of risk management on capital. Increase more efficient allocation of capital and reduce the risk of loss and can increase Investment Yield for shareholders and stakeholders. Applications of this study: This research is the observation only on Sharia Insurance Company sample while other issuers are not observed in this study and this research implies that sharia insurance issuers are growing and contributing to their shareholders and shareholder. Novelty/Originality of this study: The first time observing the Sharia Insurance industry industrial Revolution 4.0 era and previous research to observe in Sharia banking.

London

2018 ◽  
Author(s):  
Richard Roberts
Keyword(s):  
New York ◽  
Financial Services ◽  
Financial Regulation ◽  
Global Financial Crisis ◽  
Services Sector ◽  
The Us ◽  
The Global Financial Crisis ◽  
The Uk ◽  
The Impact ◽  
The Eu

At the onset of the Global Financial Crisis in 2007 London was one of the two foremost global financial centres, along with New York. London experienced a 12 per cent fall in wholesale financial services jobs in 2008–9, but a recovery got underway in 2010 and London’s wholesale financial services sector staged a wavering advance. But now there were new challenges, in particular the avalanche of financial regulation coming from the UK, the EU, the US and the G20. Fintech engendered new uncertainties. The impact of Brexit was uncertain, but mostly expected to be negative, at least in the short-term. Furthermore, there was growing competition from Asian and other financial centres. Nevertheless, London remained pre-eminent as one of the two largest global concentrations of wholesale financial services activity and at the top of the Global Financial Centres Index.

Twin Peaks 2.0: Avoiding Influence Over an Australian Financial Regulator Assessment Authority

2021 ◽  
pp. 0067205X2110398
Author(s):  
Andrew Schmulow ◽  
Paul Mazzola ◽  
Daniel de Zilva
Keyword(s):  
Financial System ◽  
Royal Commission ◽  
Regulatory Regime ◽  
Regulatory Capture ◽  
Financial Industry ◽  
Market Conduct ◽  
Twin Peaks ◽  
Current Design ◽  
The One ◽  
Sources Of Influence

Globally, financial system regulators are susceptible to deliberate and inadvertent influence by the industry that they oversee and, hence, are also susceptible to acting to benefit the industry rather than the public interest – a phenomenon known as ‘regulatory capture’. Australia, arguably, has an optimal model of financial system regulation (a ‘Twin Peaks’ model) comprising separate regulators for prudential soundness on the one hand, and market conduct and consumer protection on the other. However, the current design of the Twin Peaks model has not been sufficient to prevent and address prolonged and systemic misconduct that culminated in a public Royal Commission of Inquiry into misconduct in the industry. Subsequent to the Royal Commission and other inquiries, the Department of Treasury has proposed legislation to establish an Assessment Authority to assess the effectiveness of the Twin Peaks regulators. The proposal includes enquiries by an Assessment Authority into the regulators’ independence, so as to identify instances of, and thereby mitigate, their capture. As with all financial system regulators, the Assessment Authority itself may be susceptible to regulatory capture, either by the Twin Peaks regulators, or by the financial industry. Thus, this paper poses the question: how can the new Assessment Authority be optimally constituted by legislation, and operated, to effectively oversee the effectiveness of the regulators, but itself remain insulated from the influence of the regulators and industry? We analyse the primary sources of influence over financial system regulators that the Assessment Authority will likely face and recommend ways in which a robust design of the Assessment Authority can mitigate those sources of influence. In doing so, we adopt an inter-disciplinary approach, drawing upon not only regulatory theory but also for the first time in relation to this question, organisational psychology. Our findings address gaps in the proposed legislation currently before Federal Parliament and propose methods by which those gaps may be filled, in order to ensure that this important reform to Australia’s financial regulatory regime has the greatest chance of success.

McMeel and Virgo On Financial Advice and Financial Products

2014 ◽  
Keyword(s):  
Financial Services ◽  
Consumer Credit ◽  
Regulatory Environment ◽  
Fair Trading ◽  
Financial Advice ◽  
Financial Products ◽  
Twin Peaks ◽  
Book Covers ◽  
The Impact

This book covers the legal and regulatory environment in which claims concerning sales of and advice on financial products for individuals and businesses are brought and defended. This edition has been updated to include an explanation of the impact of the twin peaks regulation under the Financial Services Act 2012. It also analyses the role of the Financial Conduct Authority and considers its activities to date. The book covers both statutory claims and traditional professional negligence claims based on contract and tort against financial advisers, brokers, other intermediaries, and product providers. Also included is a new chapter on consumer credit, considering the transfer of responsibility for the consumer credit regime from the Office of Fair Trading to the Financial Conduct Authority.

scholarly journals Study protocol: the Australian genetics and life insurance moratorium—monitoring the effectiveness and response (A-GLIMMER) project

2021 ◽  
Vol 22 (1) ◽  
Author(s):  
Jane Tiller ◽  
Aideen McInerney-Leo ◽  
Andrea Belcher ◽  
Tiffany Boughtwood ◽  
Penny Gleeson ◽  
...  
Keyword(s):  
Life Insurance ◽  
Financial Services ◽  
Genetic Test ◽  
Insurance Industry ◽  
Genetic Research ◽  
Evaluation Framework ◽  
Test Results ◽  
Financial Industry ◽  
Genetic Test Results ◽  
The Impact

Abstract Background The use of genetic test results in risk-rated insurance is a significant concern internationally, with many countries banning or restricting the use of genetic test results in underwriting. In Australia, life insurers’ use of genetic test results is legal and self-regulated by the insurance industry (Financial Services Council (FSC)). In 2018, an Australian Parliamentary Inquiry recommended that insurers’ use of genetic test results in underwriting should be prohibited. In 2019, the FSC introduced an industry self-regulated moratorium on the use of genetic test results. In the absence of government oversight, it is critical that the impact, effectiveness and appropriateness of the moratorium is monitored. Here we describe the protocol of our government-funded research project, which will serve that critical function between 2020 and 2023. Methods A realist evaluation framework was developed for the project, using a context-mechanism-outcome (CMO) approach, to systematically assess the impact of the moratorium for a range of stakeholders. Outcomes which need to be achieved for the moratorium to accomplish its intended aims were identified, and specific data collection measures methods were developed to gather the evidence from relevant stakeholder groups (consumers, health professionals, financial industry and genetic research community) to determine if aims are achieved. Results from each arm of the study will be analysed and published in peer-reviewed journals as they become available. Discussion The A-GLIMMER project will provide essential monitoring of the impact and effectiveness of the self-regulated insurance moratorium. On completion of the study (3 years) a Stakeholder Report will be compiled. The Stakeholder Report will synthesise the evidence gathered in each arm of the study and use the CMO framework to evaluate the extent to which each of the outcomes have been achieved, and make evidence-based recommendations to the Australian federal government, life insurance industry and other stakeholders.

scholarly journals IMPACT OF INFORMATION TECHNOLOGY AND DIGITALIZATION ON BANKING STRATEGY PRE-COVID-19, CHALLENGES IN THE COVID ERA AND POST-COVID STAKES

2021 ◽  
Vol 6 (2) ◽  
pp. 60-73
Author(s):  
Syrine Ben Romdhane
Keyword(s):  
Information Technology ◽  
Financial Services ◽  
Banking Sector ◽  
Banking Industry ◽  
Jel Classification ◽  
Digital Transformation ◽  
Strategic Plans ◽  
Banking Strategy ◽  
The One ◽  
The Impact

The spread of information technology and the digitalization of financial services raise a range of theoretical questions as the structures of the banking industry undergo change. This change has intensified with the impact of the COVID-19 pandemic which is already being observed. The purpose of this study is therefore threefold: (1) to analyze the impact of IT and the digitalization of financial services on the strategy and functioning of the pre-COVID-19 banking sector; (2) to study the challenges banks are facing in the COVID era in managing the crisis, and (3) to highlight post-COVID stakes.  This study shows, on the one hand, that the crisis confirms the need for banks to combine physical proximity and digital offer, and on the other hand, that digitalization could be the solution for banks to consistently mitigate risks. Through this digital transformation and their ability to re-invent themselves, the banks would guard against potential similar crises. By adopting a more digitized and open behavior, they would be immune to such crises because they would have appropriate strategic plans, as they would be better equipped to counter the threats and better prepared to transform them into opportunities. JEL Classification Codes: B26, B41, G21, G32, O32.

Regulating virtual currencies – the challenges of applying fiat currency laws to digital technology services

2018 ◽  
Vol 25 (2) ◽  
pp. 562-575 ◽  
Author(s):  
Mohammed Ahmad Naheem
Keyword(s):  
Risk Assessment ◽  
New York ◽  
Financial Services ◽  
Banking Sector ◽  
Financial Regulation ◽  
New York State ◽  
Critical Discussion ◽  
Virtual Currency ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to consider the recent (Dec`15) introduction of the Bitlicensing rules in New York and consider from a banking perspective how this will impact on their own risk assessment processes. The paper also outlines the challenges of applying financial regulation to companies that have an area of expertise and business that is more aligned to software development, rather than financial service provision. Design/methodology/approach This paper is a viewpoint paper, which offers a critical discussion on the FATF guidelines on virtual currencies. The paper compares developments that are currently occurring within the virtual currency sector in particularly the new Bitlicensing process in New York State and discusses the implications to the banking sector on risk assessment processes for virtual currency transactions. Findings This paper will benefit the banking and regulation industries as well as economic and banking academics and anyone with an interest in virtual and digital currency technology. Originality/value This paper is unique in that it examines the issue of virtual currency regulation from a banking perspective. It explains the virtual currency technology as a means to be enhancing banking risk assessment, for clients seeking to incorporate virtual currency transactions into their business. This paper impacts on the banking and regulatory sectors because it critically examines the current practice of over regulation and the impact that this has on alternative financial systems, such as digital and virtual currencies. The paper offers a theoretical framework as well as citing current practical reports of how regulation has already started to affect the financial services landscape. The impact of getting this wrong can lead to increased criminal activity, and this paper highlights how susceptible the financial sector is to this.

scholarly journals The magnitude of the investment yield of sharia insurance in Indonesia

Accounting ◽  
2021 ◽  
pp. 497-506 ◽  
Author(s):  
Mutia Ismail
Keyword(s):  
Monetary Policy ◽  
Financial Services ◽  
Insurance Industry ◽  
Secondary Data ◽  
Partial Least Square ◽  
Least Square ◽  
Capital Inflows ◽  
Social Implication ◽  
Takaful Insurance ◽  
The Impact

The aim of this paper was to investigate the effect of the gross domestic product (GDP) and population on the investment yield of sharia insurance in Indonesia. This research used a causal research design with Indonesian sharia insurance as the focus. The secondary data were sourced from the Financial Services Authority (OJK) of Indonesia in 2016–2017. The analysis was performed with Smart Partial Least Square (PLS) software and indicated that the GDP did not influence the investment yield; however, the population did influence the investment yield of sharia insurance in Indonesia. The implications of this study are expected to recommend to the Indonesia Financial Services Authority regarding the impact of the GDP and population on the investment yield in Indonesia. In addition, the implication provides support for the Indonesian monetary policy authorities to anticipate the monetary policy by the Fed, regarding dovish and hawkish sentiments, to encourage capital inflows to emerging countries due to the impact on the development of Sharia/Takaful insurance in Indonesia. A social implication is that the sharia insurance industry in Indonesia can develop if the public can enjoy convenience in applying for premiums and ease in receiving sharia insurance claims. The majority of Indonesia's population of Moslems requires an openness in the process. This study takes a sample of different sharia industry characteristics to compare sharia and conventional types of industry.

Sign in / Sign up

Export Citation Format

Share Document