-
Understanding Catastrophe Models
Originally posted on InsNerds.com: Today we have part two of our our series on Catastrophe Models by catastrophe modeler Nick Lamparelli. You can read part one here. “You stop sending me information, and start getting me some.” Gordon Gekko In this, the second part of our series on CAT models, we will go into the guts…
-
Mega-Tsunami Fright Scenario
Should we be afraid? Source: Mega-Tsunami Fright Scenario
-
Objections To Innovations In Insurance
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…
-
Is Flood Risk Insurable?
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…
-
Where Innovation Goes to Die
Originally posted on 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 and feared organization with a “can-do” attitude. Now most people here…
-
Fooling Yourself – Cargo Cult Science
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…
-
Home Insurers Ignore Flood Risk At Their Peril
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.
-
Your Grandfather’s Model (Is Your Model too)
Originally posted on 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 to specific (recent) data points without…
-
Underwriters Sue Over Greenbrier Classic’s Hole-in-One Jackpot in W.Va.
I could forgive not placing the hole far enough away, but not paying your premium?? http://goo.gl/O7OSx8
-
There Are Flood Insurance Options Outside of NFIP
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.
Nicholas Lamparelli 