Journalists love a good scandal or crisis; it gives us something fun to write about. Yet, no matter ...
Journalists love a good scandal or crisis; it gives us something fun to write about. Yet, no matter how much is written on their origins after the event, it is rare that they signal themselves coming over the horizon at an early stage - I give you endowment sales for example. The present economic woes (page 20) are an exception, they were flagging their presence for a year or so before they hit. Bear Stearn's hedge funds going bust in the spring of 2007 was a major heads-up long before the general public became aware of any problems.
Well, I see another on the way, and I'm not alone. Richard Walsh has highlighted a decidedly odd trade in "stranger-orientated life insurance" or Stoli for short (page 11). The very idea of buying whole of life policies from people calculated to die soon has all the hallmarks of a classic scandal, a situation given an extra stir by the wrinkle of lending the poor individuals the money to buy the things in the first place. While the vast majority of intermediaries in this market are likely to be doing a good job of benefiting all sides, double-digit investment returns are likely to tempt those that may not do such a good job. Old people, death and complex financial shenanigans - I suspect a classic.
This year's Forum
Over here at COVER we are beginning to get excited for the next COVER Forum on 8 October. We want this event to be relevant to those who attend and have come up with the rather excellent idea of asking you, the readers, what you would like to hear being discussed. There is a link to a short survey questionnaire on the COVER website for you to help mould this event - we really would like to know what you think.
