No Renewal Due to Adverse Selection

Insurance companies like AIG spend a lot of money on catastrophic modeling systems, weather-related databases, and actuaries to have more and better information to place calculated bets on future outcomes.

Insurance is regulated at the state level. There are 50 different insurance ecosystems in the U.S.

In this article from The Atlantic, the faculty chair of the homeland-security program at Harvard’s Kennedy School of Government used a lot of words that weren’t “adverse selection.”

The folks who believe that math, statistics, and history are woke will read none of them.

Effective data governance, stewardship, and quality of data sources is how underwriters and actuaries compete in a model of information arbitrage.

Like any financial service, the business model is literally “value [of capital] at risk.”

Who are actuaries gonna believe, the lies of climate change deniers (i.e. hand-wavers) saying there’s nothing we can do, or their models relying on carefully sourced, curated, and tuned models?

I guess you’ll find out at the time of policy renewal.