The curious case of the Occidental and Regal : the evolution of solvency and disclosure standards in the Australian life insurance industry

In 1990, the Australian life insurance industry was rocked by a scandal that threatened to destabilize consumer confidence in the ability of insurance providers to meet policyholder liabilities. The incident highlighted the nature of the agency problems that arise when conditions of asymmetric information exist. It revealed systemic weaknesses in accounting, solvency and disclosure standards as they applied to life insurers. This article uses an evolutionary concept of agency to analyse government and industry responses to this event. It is argued that initial adaptive responses stabilized the industry and averted a more serious crisis. Longer term innovative responses led to the introduction of a new and more rigorous approach to reporting and solvency standards, which has improved information flows and agency outcomes.

Re-thinking Middle Eastern democracy : lessons from ancient Mesopotamia

The issue of Middle Eastern democracy has long inspired lively academic debate and research from across the ideological and political spectrum. Despite their differences, much of this work measures the successes and failures of Middle Eastern democracy against the Western model, with its antecedents in the political machinations found in Athens during the 5th century B.C. However, there is growing evidence to suggest that the history of democracy began on the other side of the Occidental/Oriental line and can be traced as far back as the early Mesopotamian myths of Enuma Elish, through to the grand empires of the Babylonians, Assyrians, Egyptians and Phoenicians. In the interest of fostering a liberal, democratic and egalitarian Middle East, this paper concludes by suggesting that one strategy for re-thinking the Middle East’s democratisation is to engage the powerful discourses of the Middle East’s ancient, and democratic, past.