In part 1 I discussed the implications of basing premiums on initial balance or declining balance for profitability and the threat of substitute policies. In this post I want to discuss substitute policies again, talk about cover for self-employed persons and definitions of waiting periods. What is a substitute policy Substitute policies are one of…
Systemic risk is risk to the “system” in some way. In the financial services world, it is often defined in one of two ways: The risk of contagion, where failure of an entity leads to distress or failures of others [micro prudential] The risk of an event that can trigger serious consequences for the real economy.…
In his book, Loss Coverage: Why Insurance Works Better with Some Adverse Selection, Guy Thomas propose an interesting point that adverse selection may not be as harmful as many actuaries believe. They actually go further and suggest that, at least from a policy perspective, adverse selection may be a good thing. This is particularly relevant…
Ah models, my old friends. You’re always wrong, but sometimes helpful. Often dangerous too. A recent article in The Actuary magazine addressed whether “de-risking in members’ best interests?“Â I say “recent” even though it’s from August because I am a little behind on my The Actuary reading. In the article, the authors demonstrate that by…
Credit Life regulations have been live for long enough now that insurers are starting to feel the impact and the shake-up of amongst industry players is starting to emerge. There have been plenty of debate around the regulations, in part because of the dramatic financial and operational impact they will have, and partly because of…
Bancassurance, says the oracle or finance definitions online (aka Investopedia) is : …is an arrangement in which a bank and an insurance company form a partnership so that the insurance company can sell its products to the bank’s client base. This partnership arrangement can be profitable for both companies. Banks can earn additional revenue by selling…
If you haven’t heard about CRISPR and CAS9, you won’t understand why I say it seems likely that my children will be the last in my line that are “pure natural” descendants. My grandchildren will almost certainly be genetically altered in some direct way due to the explosion of genetic manipulation possibilities just beginning to…
