Jump to: navigation, search


18 bytes added, 13:56, 13 November 2008
}}</ref> Investors generally use listed [[derivatives]] contracts like [[futures]] and [[options]] instead of insurance to manage risk.
THe The near-collapse in of AIG in the U.S. on October 2008 has inflicted short-term pain on the entire insurance industry by erodeding consumer confidence even though AIG's derivatives-trading practices apparently did not catch on with other providers, according to [[TowerGroup]].<ref>{{cite web|url=|name=TowerGroup: Life Insurance Industry Must Shift Product Mix, Adjust Distribution and Focus on Cost Containment During Economic Crisis|org=Business Wire|date=November 13, 2008}}</ref>The analysts predicty that life insurance companies in particular will re-focus their products and distribution on the consumer and cut costs to remain competitive. Life insurers are particularly vulnerable to broad-based, longer-term market downturns because they invest most of their premiums in the [[capital marktsmarkets]].  ==Protection?==
The recent changes to the federal government's Troubled Assets Relief Program ([[TARP]]) - now known as the [[Capital Purchase Program]] (CPP) - that particularly benefited AIG has now drawn interest from life insurance companies that want their share of the program to replace the expensive process of selling [[equity]] to raise [[capital]].<ref>{{cite web|url=|name=TARP May Breathe New Life into Insurers|org=Sandler O'Neill & Partners|date=November 13, 2008