Could you expand on the 3rd item on this list (considers Economic Impact on Canada).
Is this saying that insurance regulation is a way to consider and control for the broader economic impact of the insurance industry on Canada. If there was no insurance regulation insurers would make self interested decisions regardless of flow down impacts on the broader Canadian economy?
That's right - Insurance is basically the lubricant that allows risk to be taken. Without insurance, it will be difficult for businesses to run as they would be unable to shoulder a lot of the risk that comes with running a business which makes it important to regulate the solvency of insurers to ensure that financial fallback is available for the economy
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Need some additional context here (exam question)
I was refering to BattleCard 20.
Thank you
You could argue for it based on the fact that the incorporation of an insurer will be in the best interests of the financial system in Canada
Could you expand on the 3rd item on this list (considers Economic Impact on Canada).
Is this saying that insurance regulation is a way to consider and control for the broader economic impact of the insurance industry on Canada. If there was no insurance regulation insurers would make self interested decisions regardless of flow down impacts on the broader Canadian economy?
That's right - Insurance is basically the lubricant that allows risk to be taken. Without insurance, it will be difficult for businesses to run as they would be unable to shoulder a lot of the risk that comes with running a business which makes it important to regulate the solvency of insurers to ensure that financial fallback is available for the economy