Should we be afraid? Source: Mega-Tsunami Fright Scenario
Anything that is innovative in insurance will likely be met with one or more of the following objections: “You won’t be able to rate it correctly” If the rate is right, “no one will pay that” OR “you can’t compete with ‘ABC Co’ “ “Where is the market research showing the demand for this?” OR “Nobody … More Objections To Innovations In Insurance
In order for a risk to be insurable, I believe, it must have these qualities: The risk must occur randomly. In other words, you can’t possibly predict the timing of the loss. Estimates of the frequency and severity of events and losses must be estimable. Confidence of those losses estimates should increase as the number … More Is Flood Risk Insurable?
Innovator’s curse and why large companies can’t be disruptive, for the most part. Not Unreasonable Steve Blank quoting a friend of his: “Most of the time our attempts at innovation result in “innovation theater” – lots of motion (memos from our CEO, posters in the cafeteria, corporate incubators) but no real change. We were once a scrappy, agile … More Where Innovation Goes to Die
I just complete the audio book of Richard Feynman’s “Surely Your Joking Mr. Feynman“. Besides being one of the funniest books I have ever heard, it is hard to not be impressed with the man. His last chapter really struck me because as a former scientist-wanna-be, he hit upon something that really bothers me: our … More Fooling Yourself – Cargo Cult Science
Here is my latest article ( http://goo.gl/hpW8op ), published at the Insurance Thought Leadership blog. I’d like to thank my co-author, Ivan Maddox.
The same thing happens with CAT models (remember “near-term rates?) Not Unreasonable From John Taylor’s post on the fed’s model error: The solid black line plots changes in the estimated sacrifice ratio of unemployment to changes in inflation implied by the model over 64 vintages. Could easily be an actuary’s pricing model. That’s overfitting, folks. Responding … More Your Grandfather’s Model (Is Your Model too)
I could forgive not placing the hole far enough away, but not paying your premium?? http://goo.gl/O7OSx8
Here is a link to an article ( http://goo.gl/KEHLT5 ) about a women in Huntington Beach, CA who was forced into buying flood insurance. The important takeaway is that there are other options besides NFIP and if you shop around you are likely to get a better deal.
Newsday editorial staff really embarrasses itself with how little it understands about insurance. #makingstuffup … More Newsday Needs an Insurance 101. Let Me Help Them.