Globalization is only for Developed Countries Essay Example for Free

Globalization is only for Developed Countries Essay In the 1990s, the term globalization gained the popularity. At that time, globalization had become phenomena with an aura of an elemental force, almost similar to that of time and gravity. In simple words Globalization means that the same products will be available in all the countries of the world. It also means economic integration and a world united by the web. This glorious ideal made us think that if globalization would stay on with all its perks with falling trade barriers, leaving countries batter off economically and that it will reduce the widening gap between the rich and the poor. It was believed that the removal of the barriers to trade and foreign investment would result in a dynamic change in the way a company anywhere in the world would do business. It was hoped that the integration would prove beneficial to all. In the 1990s the iron curtain disappeared and trade barriers started falling, the gifts of several rounds of WTO, the Western and Japanese entrepreneurs started looking far beyond there borders for highly beneficial deals, cheap labor new markets and a very big lot of new customers. Nobel Laureate, Stiglitz (2002) rightly interpreted the situations of developing countries in his illustrative work Globalization and Its Discontents. He says; â€Å"Small developing countries are like small boats. Rapid capital market liberalization, in the manner pushed by the IMF, amounted to setting them off on a voyage on a rough sea, before the holes in their hulls have been repaired, before the captain has received training, before life vests have been put on board. Even in the best of circumstances, there was a high likelihood that they would be overturned when they were hit broadside by a big wave (p. 17). † With the end of World War II globalization started taking shape in a big way. In 1975, there were still only 7000 MNCs compared to more than 60000 today. A maddening race for going global began from opening up a two-man sales office to chalking out a countrywide network. Companies had to be big and they had to be universal. By the 1990s no one was alien to the charms of the phenomenon called globalization. The intellects of the world-entrepreneurs, economists, celebrities and politicians traveled around the world to tell us how small the world was getting. We were told to think globally and act locally. However, soon the reality dawned. The developed nations have discarded the moth-eaten policy and adopted an open-shutter strategy in coping with the developing nations. In the past they donned an apologetic camouflage and devised subtle and under-the-counter means to bring the developing countries round to their point of view, they at least acknowledged their sensitivities and treated them as members, no matter how low-grade, of the homo sapiens species. But now they have thrown all pretence to the winds and, without mincing words, dictated their terms to the developing world. Even Kipling had the decency to spell out the Western concern for the ‘uncivilized’ people of the third world by treating them as ‘the white man’s burden’. He was deeply committed to their improvement and had probably hatched some fantastic schemes to pull them out of their ‘savage’ state. But the present day reformers make no bones about it. They shamelessly believe that the condition of the third world countries is simply irretrievable and no amount of logic and persuasion can help them out of their ugly predicament. Therefore they now rely on dictation as a prescription for their conversation and have imposed their brand of progress and prosperity spineless people of the third world. And they are least bothered about their preferences and priorities.

Chemical Transport During Surface Irrigation :: Agriculture Farming Papers

Chemical Transport During Surface Irrigation Surface irrigation, the most prominent method used for irrigating agricultural crops, is the flowing of water across the field surface. As the water flows, it infiltrates into the soil. The amount of water applied to the field is regulated by the length of time that the water is allowed to flow. Surface irrigation can be subdivided into following four types based the amount of water flow control; wild flooding, graded boarders, level boarders and furrow irrigation. Wild flooding uses a series of field ditches running parallel or perpendicular to the fields' contour. Water is introduced into the field either be overflowing the ditches or by siphon. Once the water enters the field, the water is allowed to flow uncontrolled under the force of gravity. The water then infiltrates the soil as it moves across the field. The graded boarder method is similar to wild flooding except that the field is divided into a series of smaller narrower fields varying from 10 to 20 meters wide and 100 to 400 meters long. Each of these smaller fields is surrounded by a low ridge that keeps the water from spreading to much laterally. This method gives some control over the flow of water. Level boarder irrigation is similar to the graded boarder method except that the field is leveled within the low ridges surrounding it. Water can be introduced into the field at a faster rate so the field is covered much quicker. The water is then allowed to infiltrate into the soil. Furrow irrigation chanalizes the water into narrow furrows running the length of the field perpendicular to the contour of the field. This submerges only about one fifth of the soil surface. As the water flows down the furrow it infiltrates into the soil below and to the sides of the furrow. All four of these methods result in excess water being applied to the field to ensure that the far ends of the field are adequately watered. This means that there will be water running off the field on the downhill side of the field. A ditch is run along the side of the field to collect this water and remove it from the field. This excess water is of concern from a water quality standpoint. Almost all crops grown in the united states are done so under intense fertilization and pest control programs that result in large amounts of fertilizers and pesticides being applied to the soil and crop itself.

Psy 535

Multicultural research methodologies are one of the newest research fields to be implemented in recent decades. Traditional research methodology has been established for centuries, and has a very orthodox view of things like norms, measurement instruments, sampling, and observation. Multicultural researchers quickly found out that applying these same factors to their own research was inappropriate; the field of multicultural research demanded a different perspective if any sort of useful and accurate findings were ever going to be issued. Two areas where there is great difference between multicultural research and traditional research are measurement instruments and norms. In these two areas it is easy to demonstrate how traditional research has a much easier time being performed with the standard and well established concepts involving measurement instruments and norms. However, when a multicultural researcher attempts to answer a question or reinforce a hypothesis he or she will quickly find out that they must perform their research in a way that is very different from those in the traditional field. Measurement instruments are an excellent place to begin looking at the way multicultural and traditional research methodologies contrast. As the world becomes increasingly globalized and corporations begin to operate in many different countries encompassing different and diverse cultures, there is a clear need for accurate multicultural research on a myriad of topics. Even simple surveys like product satisfaction are more difficult for a multicultural researcher. Various countries and populaces simply have different viewpoints and this can cause entire research designs to have to be suited to specific nations, or even specific populations within those nations. For example, traditional researchers have found that it can be extremely difficult to get individuals in Latin America to participate in one of traditional researchers move time honored measurement devices; the focus group. (Morrow, 231) In contrast, many American citizens are quite receptive to the idea of participating in a focus group, a well-established fact known to most multicultural as well as traditional researchers. Those who are educated in multicultural research methods understand that Latin Americans have a very different point of view when it comes to how they value their time. For the average Latin American the idea of participating in a focus group is a waste of time that could be better spent doing almost anything else. The list of research measurement instruments that must be altered depending on the culture being sampled is almost endless. Mail surveys, another common tactic employed by traditional researchers to gauge opinion on a host of different topics have been found to be very inefficient with Americans and many Westerners in general. (Morrow, 256) Multicultural researchers have found that, through careful studies, other cultures are much more receptive to mail surveys. The Japanese, for instance, are much more likely to complete and return a survey mailed to them in comparison to the average American household who would likely discard the survey as â€Å"junk mail†. Morrow, 257) This is not to suggest that either culture is wrong for their treatment of this particular research instrument; rather, it simply highlights that people thousands of miles apart have vastly different cultural experiences that will shape their views on the importance of everything, including whether or not a mail survey is worth their time. An informed multicultural researcher would be wise to employ the mail survey when he or she is doing their work in Japan, just like a researcher working in the United States would achieve much better results by utilizing focus groups. Traditional researchers might very well plod ahead and send out thousands of mail surveys to Americans, knowing that they will receive a small percentage back. However, if these researchers were to pay closer attention to the cultural aspect of the research, they would be able to conduct their inquiries in a more efficient way, both in terms of money spent and answers received. A second area that holds great potential as a way to compare and contrast multicultural and traditional research methodologies is norms. Traditional researchers usually work with a well-established set of norms that rarely fluctuates. Gottfried, 117) Multicultural researchers operate in a much different environment. For those looking to perform a study or experiment that focuses on the impact of culture, they must pay very close attention to the individuals who they are surveying and how the norms for those people can be very different from the norms of others sampled. An example of this would be a multicultur al researcher attempting to study the public’s view of single-payer healthcare, as many liberals have suggested is a good idea for implementation in the United States. A researcher could ask a series of targeted questions to a group of Americans, but without considering their cultural leanings, the research would be inherently flawed. A fourth generation American of European descent will have rather â€Å"mainstream† views of the topic, which will contrast greatly with a first generation Canadian immigrant. (Gottfried, 112) The cultural norms for each of these groups will be very different, which will end up in them answering the question differently or, even if they answer the same, for different reasons. A traditional researcher would not pay very much attention to this issue, and would likely state that an American is an American, and that with a large enough sample size they would arrive at the correct diagnosis of the public’s point of view regarding the topic. Those who are involved with multicultural research know that by passing over the deep cultural divides that exist between most American citizens, the research would be virtually worthless. In conclusion, multicultural research and traditional research have much in common, but differ on some very important points. Two of these points are the relevance of norms and measurement instruments. Multicultural researchers will work much harder to get a better understanding of their respondent’s culture before asking questions and conducting other research. This ensures that the reasons behind their answers are known, which equal a more comprehensive research design. Measurement tools and their impact differ between the two research methods as well. Multicultural researchers pay close attention to the culture they are sampling, and employ research instruments that are the most likely to garner results. Traditional researchers are much more likely to use a blunt research tool, and use it over and over again until they achieve the necessary amount of responses. Both research methodologies have their place, and both will continue to benefit from the others perspective. Works Cited Morrow, Susan L. (2001) â€Å"Qualitative research methods for multicultural counseling: Handbook of multicultural counseling† Thousand Oaks, CA, US: Sage Publications Gottfried, Paul Edward. (2002) â€Å"Multiculturalism and the Politics of Guilt: Toward a Secular Theocracy,† University of Missouri

global insurance industry - Free Essay Example

Sample details Pages: 12 Words: 3476 Downloads: 3 Date added: 2017/06/26 Category Economics Essay Type Research paper Did you like this example? 1. Industry analysis This section provides a summary firstly, of the insurance industry including its long history and secondly, what is insurance and why do we need it. Thirdly, a description of the insurance industry globally including its size by value, the competitive landscape, challenges the industry faces, the regulatory environment, and the role technology plays and finally, a summary of the insurance industry in New Zealand. 3.1 What is insurance? 3.1.1 An abbreviated history Literature and indeed history dates the concept of insurance as far back as the early to middle Bronze Age, 3rd millennium BC. Chinese merchants would spread their cargo across a number of ships to limit the loss due to any single ship capsizing. Then about 2250 B.C., Hammurabi the King of Babylon, developed a system called the Code of Hammurabi, where a merchant received a loan to fund his shipment; he would also pay the lender a further amount in exchange for the lenders promise to cancel the loan if his shipment was stolen (C F Trenerry, 1926; King, 2004; Wikipedia, 2009). Sometime around 600 A.D. the Greeks and Romans introduced the concept of health and life insurance. This was through the establishment of benevolent societies whose purpose was to care for families and funeral expenses of its members on death. In 1688 Edward Lloyd opened a coffee house with the express purpose of providing a reliable source of shipping news. This became later named Lloyds of London, the pla ce where underwriters wrote insurance policies thereby starting the modern concept that we now understand of insuring risk. Don’t waste time! Our writers will create an original "global insurance industry" essay for you Create order 3.1.2 Definition of insurance Insurance is a form of protection against financial loss which arises from unexpected events. Insurance companies collect premiums to provide for this protection. By paying a sum of money it safeguards you financially from regrettable events. (Getmeinsure, 2008; Investopedia ULC., 2008; My Insurance Guide, 2008; State, 2009) In New Zealand, the Insurance Council website states that Insurance hedges against the unknown and random events (ICNZ, 2009a). Depending on the company and the type of insurance required, insurance is defined as a contract between insurers (Insurance Reinsurance companies) who undertake in exchange for premiums, to pay the insured (Insurance companies and their customers) a fixed amount of money if certain events happen (Investment Savings Insurance Association, 2009; Investopedia ULC., 2008). The type of insurance cover required to help protect varies from company to company but may include: Boat Car Caravan and trailer Commercial Health Home Life Motorcycle Reinsurance Travel This case study refers to reinsurance as the way in which insurance companies protect or insure themselves with other larger insurance companies against the risk of loss caused by major catastrophes such as hurricanes, earthquakes, class action lawsuits, collisions (significant in size such as between ships or trains), extensive diseases or sickness and death caused by pandemics.(Investment Savings Insurance Association, 2009; Swiss Re, 2004) 3.2 The insurance industry, globally 3.2.1 Sector size To measure the enormity of the insurance sector, in 2004, globally insurance premiums totalled in excess of USD$3,300 billion for both life and non-life insurance (Figure 7: Global multi-line insurance market value). With annual growth rates ranging between 2 and 10% (Stanley St Labs., 2009). Multi-line insurers, those with diversified interests in life, health, property medical insurance, in 2008 accounted for premiums of USD$3,888.6 billion making insurance one of the largest financial sectors (Figure 8: Global multi-line insurance market). The major insurance markets are in the US, Europe, Japan, and South Korea with a growing number of emerging markets that include India, China, and Latin America. As a result, the four major markets, comprising 7% of the worlds population, accounted for almost two-thirds of premiums for 2004, while remaining or emerging markets, 85% of the worlds population, accounted for only 10% of all premiums (Figure 9: Global multi-line insurance marke t) (Insurance Information Institute, 2008). 3.2.2 Competitive landscape Most industrialised countries recognise that markets operate best under competitive conditions. When markets are left to their own destiny, failure may occur due to personal interest and personal advantage, as much as diverse market conditions. In the United States the Sherman Act of 1890 was enacted to enhance antitrust laws. This has been amended over the last 120 year but still maintains the principles it was founded on. Most countries are now reproducing the United States law and developing similar antitrust legislation to prevent monopolistic practices, though attitudes differ in East Asia where it is well known that Hong Kong and Singapore support monopolies (Nissan, 2003; Round, 2002). The number of products and services on offer has never been better for consumers whether they are mum and dad protecting what they have built up during their lifetime to shareholders wanting to preserve their investments. Each has its own risk but isnt that what insurance is about; managing risk. The insurance information is consumed not only by the consumers wanting to understand their risk but includes industry advisors, strategists, business owners, governance boards and shareholders, who all have a need for information or facts to support decisions they take. Since the end of 2007 the world economy has suffered from a recession; recession being a fall in Gross Domestic Product (GDP) for at least two consecutive quarters (Amadeo, 2009; BBC News, 2008). It has been debated that either in the United States where higher mortgage rates coupled with declining house prices caught out homeowners (Amadeo, 2009; Stanley St Labs., 2009) or global triple digit oil prices are to blame (Hamilton, 2009; Rubin Buchanan, 2008; Schneider, 2008). Higher mortgage rates coupled with declining house prices forced banks to reassess their risks and stopped lending to each other. This in turn led to significant government bailouts, bankruptcies or government nationalisation o f Bear Stearns, AIG, Fannie Mae, Freddie Mac, IndyMac Bank, and Washington Mutual. As a result employment in the US was declining faster than in the recession of 2001 (Amadeo, 2009). On the other side, ongoing crisis in the financial markets are masking what is taking place in the oil industry. Oil stocks have risen uncontrollably, in some case over 500% since 1973, which caused the recession in the 1980s (Rubin Buchanan, 2008; Schneider, 2008). Figure 10: US long leading index below is a cyclical indicator of US business cycles. The indicator is used to anticipate and monitor economic consistently. It is made up of by measuring a combination of employment, manufacturing, services, construction, trade balance, imports, exports, and future inflation (Banerji Hiris, 2001). Whichever is the cause of the current recession, the world has been suffering two significant problems since 2007; global recession and a global credit crisis. Given these circumstances, insurance tren ds are on the increase due in part to greater take-up of high-speed communication between companies and individuals. Consumers of products are now able to purchase insurance and financial products not only through traditional means but online and over the phone from almost anywhere in the world. Increasing affluence, especially in developing countries, and a rising understanding of the need to protect wealth and human capital has led to significant growth in the insurance industry. (Stanley St Labs., 2009) 3.2.3 Challenges for the insurance industry The insurance industry has faced and continues to faces numerous challenges (Deloitte, 2008, 2009). The share variety of challenges makes it difficult to include all challenges in this case study. The following sections highlight key challenges facing the insurance industry where technology particularly IdM has an impact. Malware/phishing/identity thief Organised crime is using sophisticated malware attacks to write malicious code on systems to watch and record users personal information (Huntington, 2006; Seltsikas, 2005). Crime syndicates using elaborate toolkits conduct phishing attacks (identity thief) and keyboard logging attacks using both hardware and software devices at the same time. Huntington recommends nine levels of defence that form a layered identity strategy to mitigate risk of attack. Appendix 6: Challenges in insurance. IdM will be the key to legitimate data access providing, at every point, strong underlying infrastructure (Bosworth, et al., 2005; Seltsikas, 2005). Money laundering The Societys Audit Manager indicated that possibly the next big conspiracy in the insurance industry was money laundering. This he bases on the terrorism threat to economies such as New Zealand where it may seem easier in a small country to get away moving money between accounts. The practice of IdM, in particular identity verification, is one technique used to monitor exactly who is accessing an account and could tell if those on watch lists for suspicious financial activities have assess to your systems. Reports using watch lists provide organisations such as Interpol with information to help monitor the activities of known terrorist. Preceding and next generations As new generations enter the work force they bring with it new challenges that are undoubtedly different from previous generations (Nana, 2009). There is also a change in the control of power shifting from employer to employee. As an example, The Chubb Corporation offered staff flexible work schedules. The outcome was 18% increase in the number of casualty claims, 4% increase in payments processed within 24 hours, 40% decrease in overtime hours. In a number of cases IdM concepts were responsible Chubbs increases. Flexible working arrangements meant that staff were able to work from home, hot desk at a branch or in the Head Office, and link to authorised systems. Chubbs IdM system provisioned/de-provisioned staff, provided role-based access to systems, and provided self management for minor IT issues such as password resets and system lockouts. Privacy security Famous psychologist Abraham Maslow termed the phrase next to survival comes safety and security' (Vishakeb, 2008). In 2008 the Lloyds bank introduced follow me technology which provides the ability for employees to print from any technical device with enhanced security. This was due to Lloyds Corporation ID pass which released print jobs once their identity was verified (Lloyds, 2008). Sarbanes-Oxley Act A United States federal law enacted on July 30 2002 as a reaction to a number of major corporate and accounting scandals As companies exhibit tighter control over their practices, IdM elements play a key role in providing companies with greater auditing capabilities through ensuring security policies are built into the IdM solution, reduce risk through automation, strengthen system access by way of identity verification, and the provisioning and de-provisioning of users accounts. This last point ensures each identity is provisioned the right access, to the right system, at the right time. Working within regulatory and compliance frameworks Insurance for long periods has been self-regulating but negative events over the last 25-30 years, such as fraud, money laundering, and poor standards and ethics, have evoked governments to regulate the industry to the point that the industry must now work within stringent regulatory and compliance frameworks. Auditors often cannot take into account all aspects to the business, unless significant issues are prevalent, and rely on the company to be honest and disclose areas of potential risk. IdM plays a significant role in providing Auditors additional reporting tools to examine transaction logging in applications and systems. 3.2.4 Regulatory environment There are good reasons that insurance has, historically, been subject to regulation. The most obvious one is that a consumer pays money today for a promise that may not be deliverable for years. That promise must be secured from many threats, including insolvency and dishonesty. (Hunter, 2003) Each country has their own range of regulations, standards and guidelines for insurance companies. International regulations are becoming more commonplace as insurance companies open international subsidiaries to leverage their competitive products and services. Two recent additions to regulatory compliance within the European Union (EU) over the last 5 years have been Solvency II, an updated regulatory requirement for insurance companies operating in the EU, is designed to facilitate developing a single-market for insurance across Europe. From a United States standpoint, changes to accounting practices through International Financial Reporting Standards (IFRS) are designed to develo p international standards for financial reporting (IFRS, 2008a, 2008b). These two standards have caused insurance companies to question the validity and assumption that the new standards undermine business profitability. 3.2.5 The role of technology One of the greatest technological impacts and challenges to the insurance industry over the past 15 years has been the adoption of the Internet, and in particular e-commerce. Market forces dictate that every insurance business should an online presence. In the Internets infancy customers accepted that brochureware websites gave all the necessary information without the ability to purchase products or services. That has significantly challenged insurance companies in recent years to the point that if they cannot provide what now are the basics, online forms, calculators, detailed and comparative information, then customers turn to the next company that can support their need for information (Aarabi Bromideh, 2006; Yao, 2004). Technologies and innovative approaches to business are moving at such a pace that companies are finding it difficult to keep up with legal implications. For example, nanotechnology and the risks posed by it remains unpredictable (Lloyds, 2008). Its not j ust the use of information that insurance companies find difficult to maintain, but the risks placed on the information technology infrastructure remains key in most companys minds. With the amount of data, companies are moving to leasing or building their own large-scale datacentres and warehouses to support their capacity concerns for storage. For most insurance companies the industry is very much reliant on manual processes. Automation and expert systems play a significant role for larger companies where premiums can cover the cost of developing these complex systems by relying on statistical accuracy, particularly in the field of underwriting. For small to medium sized companies (SME) automation is less attractive as the returns in most cases do not cover the costs (Kelly, 2002; Whitney, 2001). The role of technology is not only consumed by companies but in itself can lead to large claims as Lloyds state in their 2008 report for 2007. there was a series of single event losses that were significant in size and frequency. Man-made and technological catastrophes caused around US$7bn in insured losses last year, some 46% higher than the annual average of US$4.8bn. Nineteen events across 11 countries resulted in insured losses ranging from US$80m to nearly US$2bn each. (Lloyds, 2008) Weve identified a small number of technologies that play a role and have an impact in the insurance industry. This by no means rules out other technologies as each plays their role in defining and providing a competitive edge for insurance companies. In saying that, employees will not replace technology anytime soon for two reasons. The majority of the market still want some level of human interaction where purchasing a product or service, and secondly, most commercial products, at this time, are too complex to be sold without an advisor or broker (Kelly, 2002). 3.3 The insurance industry, locally In New Zealand, MED (Ministry of Economic Development, 2009a) depicts the industry as being a small market by world standards dominated by international subsidiaries for life and general, with mainly local companies for health insurance with Southern Cross, the largest of these, holding 70% of the market. As at October 2007 there were 42 life insurance companies offering policies in New Zealand and 134 registered Non Life Insurance Companies, Brokers and Captives with total gross premiums of nearly $4 billion to October 2007. These companies are regulated under New Zealand laws and depending on the types of insurances sold comply with a number of acts: Life Insurance Act 1908 Insurance Companies Deposits Act 1953 Insurance (Ratings Inspections) Act 1994 Superannuation Schemes Act 1989 Accident Insurance Act 1998 Financial Reporting Act 1993 Insurance Companies Deposits Act 1953 Friendly Societies and Credit Unions Act 1982 Securities Act 1978 Since 2008, disaster and general insurers offering policies in New Zealand have been required to be rated by one of the following three agencies; AM Best, Standard Poors and Fitch Ratings. This rating is designed to provide a measure of a companys ability to meet its claims payment obligations to customers. 3.3.1 Competitive landscape New Zealand insurance and finance industry, in which the Society operates, are currently experiencing a recession of such enormity not felt since the Great Depression of 1938. Some of the more experienced and long-standing organisations with large customer-bases are finding it difficult to weather the recession if it last much longer as they experience a drop-off in premiums and a surge in claims. As a result reinsures are charging more to cover the affects. New Zealand companies role in the insurance industry globally is less significant than with larger nations, but it still plays a major role to support the local market. In the Tower Market Review (2008, p. 1) to the end of Dec 2008 stated that: 2008 will go down in history as one of the most dramatic years the markets have ever experienced. By the end of the year, turmoil in the credit and equity markets was feeding through to the real economy, with authorities worldwide trying to avert a prolonged recession. 3.3.2 Challenges New Zealand faces many of the same challenges as other countries do due to the fact that all major insurance companies operating here are international subsidiaries. The challenges for smaller companies is maintaining their customer base as most smaller companies target specific niche markets such as the Society and medical professionals. 3.3.3 Regulatory environment Insurance companies are not immune to facing regulations that protect but the cost to comply ends up costing the consumer. New Zealand is one of the less regulated counties in the world when it comes to insurance and finance. This is due in part to the New Zealand Insurance Council and its self-regulatory framework (Table 6: Insurance Councils self-regulatory framework) and self-developed guidelines (ICNZ, 2009b). This seems to work in New Zealand as our cultural differences, compared to most other countries, relies on companies being fair and providing that helping hand due to our small population size and geographic location. With the work ICNZ undertakes, bear in mind the government acts identified previously. IFRS (International Financial Reporting Standards) will become a requirement for all New Zealand reporting entities, including insurance companies, with financial years commencing on or after 1 January 2007 (KPMG, 2009). Joanna Perry, KPMG Partner and Chairman of the Financial Reporting Standards Board states that: The transition of New Zealand business to International Financial Reporting Standards is without doubt one of the most significant accounting events in our countrys history. The impact of IFRS on New Zealand insurance companies means customers should see transparency in companies reporting results, providing greater levels of confidence. For insurance companies this means increased complexity with greater care to be taken when providing advice and being transparent to customers. 3.3.4 The role of technology As described in 3.2.5, the role of technology, New Zealand is not immune from those observations. There impact is felt in New Zealand probably more so given our physical remoteness in the world relative to international markets. New Zealand is strongly dependent on its communication technology links such as the Southern Cross Cable for access to compete with the rest of the world without significant time delay or restrictions that other modes of communication possess. New Zealand is more likely to be able to compete successfully in global markets by developing strengths in the weightless economy the weightless economy includes adding more knowledge-based value (Skilling, 2009) As the Internet has developed and expanded globally, New Zealand has attempted to make the most of it by incorporating new business models accorded by the Internet into mainstream business (Skilling, 2007; Skilling Boven, 2007). This has allowed for greater competition and influence from intern ational insurance companies, which once may have ignored New Zealand due to its remoteness, to deal directly with rather than through 3rd party brokers and advisors. The governments broadband investment proposal, in which ultra-fast broadband is to be rolled-out to 75% of New Zealanders over the next six years, has been accepted as an extremely positive move (Ministry of Economic Development, 2009b; The New Zealand Institute, 2009). This affords New Zealand insurance companies the ability to compete, be more innovative, and provide technology solutions to customers yet to be discovered. In parts of Asia, Europe and the United States, broadband connectivity is so fast that the time for customers to get the right information to make informed decisions has shortened allowing those insurance companies with innovative solutions to attract the customer before lesser insurance companies. 3.4 Summary Technology plays an extremely important role within the insurance industry. The examples contained within this chapter contain a narrow view into what others are doing at this time. The ability for New Zealand insurance companies to compete in these markets requires them to adapt solutions, business models, technology and to innovate to the point where it still may not make that big a difference to policy holders. What will make the difference is being able to offer targeted products and services to consumers. New Zealand has the potential to select the best products and services based on experiences from other insurance companies; it can rely to a larger extent on the diversification of global companies to leverage and find the best for its consumers. This requires knowing the its environment which markets offer the best rage of solutions (rates, product and technical expertise), regulatory opportunities to ensure New Zealand companies do not suffer from monolithic pract ices or legal infringements, industry and financial trends that provide realistic views in forecasting for harder times, and the myriad of other challenges that the industry faces.