This is the second hosting of the Cavalcade of Risk at Ozrisk. The first concentrated on the perceptions of risk, so perhaps we should move on to its actuality in this one.

Health Insurance

The recent (very recent) legislative changes in the US health insurance area makes this quite topical – but I have to admit it is not my specialist area. To put it mildly, these changes do not seem to have attracted universal acclaim amongst the health risk community in the US. The posts on it range from the concerned to the condemnatory. The most favourable to a post that was in favour was this one from Louise – but that could hardly be seen as a strong endorsement. Coming from a country that has a reasonable (but by no means perfect) health system I have always found it difficult to understand the US system, but the Australian one is not much easier to understand – but the political arguments are a little less shrill. But only a little.

Perhaps there is another way to do this, but surely it can’t be that simple.

On areas other than the health bill, Jason Shafrin looks at the perennial problem in health insurance – cost effectiveness.

Political Risk

One of my favourite topics is the attempts by the unskilled to impose their idea of the right thing to do by legislative fiat. This one, from Arizona, is a good example of an attempt to increase compliance with speeding laws – which just ends up making a mockery of the idea of compliance.

The big element of political risk is that you just do not know what the politicians are going to do next, but you can hazard a guess it will be big. Attempts to re-shape the mortgage market looks like the next big issue, and Calculated Risk has been looking at changes to Fannie and Freddie.

Nancy Germond also has a look at the hazards arising from changes in the law – and how to insure against it. Personally, I prefer mitigation, but when you can be dragged through the courts over what seem to be small things, perhaps mitigation is no longer enough. Doing the right thing can be impossible to demonstrate at times.

Lists

There were a couple of intriguing lists submitted this week as week. I am not entirely sure they are risk related, but they are worth a look for the list compulsives amongst us.

Insurance

Millie Kay G presents Get The Right Coverage! Insurance Policies You Need and Those To Avoid. Her advice seems good – particularly on pet insurance. That said, several people I know have spent thousands on operations for their pampered pooch, so maybe you should take another look at this.

Consumer Boomer looks at the possibilities of cheap Term Life Life Insurance. Perhaps sometime you do get what you pay for.

Perhaps if you do not like a contract you have just signed, you can get it declared unfair – and ignore it. Australian law can do that at times – but I am sure it is not just here.

Banking

Chris over at the Financial Services Club blog has a number of historical quotes to look at – from FDR to the IMF. It can pay to remember that there very little that is new in rhetoric about banking. If you like your analysis a little less “worksafe”, try this one on systemic risk. Always amusing, just be prepared for your internet filter to kick in.

The operational risk of dealing with the interface between a bank’s systems and its customers (i.e. the tellers or lending officers) is discussed at The Bank Channel. This can be the biggest source of operational risk of all.

It is always interesting doing a blog round up – while not as long as some, I hope you have enjoyed this one. Thanks to Henry and the Blog

Carnival!