The Gramm-Leach-Bliley Act (GLBA)

The insurance industry’s performance is highly correlated with the state of the economy and specifically GDP growth. From the data outlined in this report, it is evident that the insurance industry flourishes alongside the economy where factors such as output, unemployment, and other variables are growing as well. Since the 2008 crisis, the Canadian economy has recovered quite well. One of the key concerns going forward is the current exchange rate of the Canadian dollar. Going forward, as the economy goes into a boom it will be crucial for the insurance industry to reach its potential.

Insurance companies will be monitored by a new governmental committee to prevent price gauging. If an insurance company was found to price gauge they would be heavily fined.

The subject of insurance and how heavily the government can mandate it or not mandate it is a constant struggle in politics. There is always the question of “what kind of relationship should the government have with its people and what role should it play with businesses?” Currently, a popular subject is the Affordable Care Act (Obamacare) and it is challenging the boundaries by requiring people to have health insurance and requiring businesses to offer health insurance to everyone and anyone. Mandating insurance is a hot button subject in other areas too that we will discuss like auto insurance, workers’ compensation insurance, and professional malpractice insurance.

The purpose of the coursework is to undertake a critical analysis and an assessment of the level of competition in the insurance industry of the country of our choice. In my case, I have decided to explore the health insurance industry of the United States. One of our aims is to

Is this a violation of the Gramm-Leach-Bliley Act of 1999? Is Payday a financial institution and therefore subject to Gramm-Leach?

The Price-Anderson Act of 1957, cover risk cases of individuals from the general population for individual harm and property harm created by an atomic mischance including a business atomic power plant. The enactment energized private interest in business atomic power by putting a top, or roof, on the aggregate sum of risk each atomic power plant licensee confronted in case of a mishap. After some time, the "point of confinement of obligation" for an atomic mischance has expanded the insurance pool to more than $12 billion.

First of all, every economic sector that was subject to economic regulation before 1975, has undergone significant changes in the nature and extent of regulation. These changes had profound effects on the structure of industries, price levels, costs and productivity. The industries in which changes occurred in economic regulations are the carriers, heavy transport, public transport, railways, telecommunications, production and transportation of natural gas, cable television, banking and financial services , electricity and property insurance and liability. These industries vary in structure, behavior, nature of regulation, and distribution of responsibilities between federal and state regulatory authorities. There are also wide variations in the major reasons, causes, and consequences of regulatory changes in these industries.

He also believes that bringing in private insurers would allow them to chose the customers they believe are the best and leave the government with the severe repetitive loss properties. In a sense the government would act like the state-run insurance pools for especially risky drivers, it would take the high-risk properties that private insurers do not want. People also worry that if the insurers set the prices instead of the government prices may soar and people will be driven out of their

The Kellogg-Briand Act was to end all wars agreement. It was signed on August 27, 1928. It was one of several efforts to stifle another World War. In hindsight, it did not work due to the rise of militarism in the 1930s. In the US, private citizens along with US officials made many efforts to guarantee that the US would never be drawn into another war. Disarmament was the biggest effort. Other efforts led by Nicholas Murray Butler and James T. Shotwell were in effort to outlaw war itself. Industrialist Andrew Carnegie established the Carnegie Endowment for International Peace in 1910 that promoted internationalism, Butler and Shotwell were members of Carnegie’s faction. Shotwell and Butler assisted and influenced French Minister of Foreign

Government regulations for insurance was implemented in the 18th century. Where as to the reason we have insurance regulation is to protect American Consumers. This means that the public can be protected by insurance in many ways.

The Gramm-Leach-Bliley Act requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data ("Gramm-Leach Bliley Act (GLBA)"). It is a United States federal law that requires financial institutions to explain how they share and protect their customers’ private information. To be GLBA compliant, financial institutions must communicate to their customers how they share the customers’ sensitive data, inform customers of their right to opt-out if they prefer that their personal data not be shared with third parties, and apply specific protections to customers’

The modern claims capability which works on a monumental scale has been built on decades of rising and competing demands. Nationwide, the current claims are capable enough to support and finance the largest economy of the United States. Therefore, this protects the millions of Americans from catastrophic loss due to medical expenses, supports disease management, safeguards against medical fraud and abuse, plays a crucial role in tracking national healthcare trends, and warning against bioterrorism and health pandemics. In order to finance and handle this program, employers tried to seek the help from the multiline insurance companies to estimate the financial risks involved and analyze the process claims. To reflect the enhancing complexity in the field of healthcare, financing and billing practices by the provider have brought many changes (Kongstvedt, 2012).

The inherently antagonistic relationship between insurance companies and consumers is the “core problem” with insurance, but there is more. Imagine a retail organization that could somehow force every single person within the selling area to buy their product. With insurance, on the other hand, certain kinds of insurance are mandatory. It is against the law to own and operate a car without insurance. If the mortgage is greater than a certain percentage of the value of the house, so is Private Mortgage Insurance. Aside from the fundamental unfairness of mandatory insurance, when purchase becomes mandatory rather than voluntary, costs are likely to become inflated. Furthermore, when something is covered by mandated insurance, the costs of repair and replacement become inflated. People charge more because it is covered by insurance. How many people who have suffered fender bender auto accidents haven’t noticed overpriced estimates from body shops when the work is covered by insurance? In other words, most purchase decisions are based upon perceived value – the trade-off between the quality of the most desirable benefits and the price paid for those

Insurance companies provide another alternative to this problem but they too are hindered by governmental regulations intended to “help” people. Once again governmental agencies have infringed on the private enterprise ability to resolve a problem. Left to their own devices insurance

In today’s world insurance plays a critical part in almost everything we do in society. So isn’t a surprise that insurance plays a huge part in a countries economy. In simple terms insurance allows people to participate in the economy by letting them produce goods and services without the fear of an event or action that would leave them destitute or unable to keep doing business. On a less known level insurance also affects the economy of starts and local economies. In addition to this one way, the insurance industry supports the economy is by being an employer. In the United States this industry employers more than 2.5 million jobs varying in position and function. (Insurance Information Institute) Furthermore, the insurance companies support the economy with their investments. By collecting funds and acting as intermediaries for providing insurance protection these companies have $5.1 trillion in assets which could be broken up into $1.5 trillion for property/casualty and $3.6 trillion for the life sector. (Insurance Information Institute) As for the gross domestic product, the insurance industry’s has contributed $421 billion in 2013. (Insurance Information Institute)