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Autonomous vehicles: is the traditional automobile insurance old-fashioned?

Autonomous vehicles: is the traditional automobile insurance old-fashioned?

Today, insurance campanies are facing new challenges further to the emergence of new technologies and the digital disruption within the insurance business : the arrival of the autonomous vehicles. In recent years, insurance companies have based their business model on three competitive advantages: Risk assessment, the knowledge of historical causal event data for loss probability through carrier portfolios. Risk pooling, the unwillingness or inability of single entities to cover their total individual risk. Risk timing, the ability to even out risks over time through risk assessment and risk pooling with time-delayed data analysis and according premium adjustments. In fact, insurance companies are now doing extensive research on individual drivers in order to price policies, as there is no comparable information exists for  autonomous vehicles. The insurance industry must redesign its current pricing structure to cover the decisions made by a machine instead of a human. The safety track record of a fleet will likely play a major role in the calculation.

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How financial creativity becomes a burden: FATCA 871m and the hurdles to be taken.

How financial creativity becomes a burden: FATCA 871m and the hurdles to be taken.

The US Internal Revenue Service (IRS) declared further postponement on the shift in delta on the FATCA 871m withholding on non-delta-one transactions until 1st of January 2021. The current delta-one scope is still valid but the target 80% foreseen for EoY 2019 needs further examination.
IRC Section 871m was initiated to counter the creative minds of the financial actors who were able to build financial constructions, facilitating fiscal arbitrage to avoid taxes imposed by FATCA withholding as defined in chapter 3 and 4.
The purpose of the article is to elaborate on the subject not only from a law perspective but also from a product and process/operational perspective. It will also describe the challenges a financial institution or investor should consider to install a clear control framework to be in line with the regulatory requirements. 

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SIN STOCKS: AN INVESTOR’S GUILTY PLEASURE?

SIN STOCKS: AN INVESTOR’S GUILTY PLEASURE?

Investors have one goal in common and that is maximizing their return for a particular level of risk. In their search for maximizing return some investors feel drawn to so-called sin stocks. A sin stock commonly refers to a publicly traded company that is either involved in or associated with an activity that is considered unethical or immoral like alcohol, tobacco, gambling, sex-related industries, weapons manufacturers and more recently marihuana. Different caveats with this definition are discussed in the article.

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