Underwriting and Actuarial: Making Better Dog Food Together You - - PowerPoint PPT Presentation

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Oct 19, 2023 182 likes •334 views

Underwriting and Actuarial: Making Better Dog Food Together You can make the best dog food in the world; but if the dogs wont eat it, it isnt any good. Traditional Dog Food Loki : A Very Happy Dog He likes his dog food and eats it up.

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Underwriting and Actuarial: Making Better Dog Food Together

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You can make the best dog food in the world; but if the dogs won’t eat it, it isn’t any good.

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Traditional Dog Food

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Loki : A Very Happy Dog

He likes his dog food and eats it up.

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Traditional Underwriting

 Class Plans  Rating Plans  Underwriting Guidelines  Schedule Credits/Debit Plans  Underwriting Judgment

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New and Improved Dog Food

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Loki: Not so happy

He does not like his new and improved dog food so much.

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New and Improved Dog Food

You can have the most predictive model in the world; but if the dogs won’t eat it, it isn’t any good?

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Who are the dogs?

 People who regulate insurance  People who underwrite insurance  People who sell insurance  People who buy insurance

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This is important

How can you best integrate the model into your underwriting

processes?

Simple is always better.
Models must be integrated into systems at the point of sale.

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My View of Models

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They need good data.
They improve risk selection.
They improve our ability to price.
They are probably wrong.
They do not replace underwriting

judgment.

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What does finding a submarine and underwriting judgment have in common?

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How to make better dog food?

The best dog food is made through a close collaboration between Underwriting (Art) and Actuarial ( Science). And always it has to made with dogs in mind.