Direct effects Decrease of the population income; reducing the purchasing power Increase of the surrenders and lapses Reducing sales Competition with substitute products Reputational risk Decrease consumer confidence Increasing the hedging price Lower interest for investing in financial sector, mainly for the individual investors Increase demand for RI Positive effects: Companies focused more on clients – communication and quality of services Focus on increasing the efficiency of the internal processes Focus on core-business, divesting or decreasing the non core-business More demand for the protection products and guarantee products New approach on supervision 9
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