Now they’re being faced with claims figures that are undermining that narrative. And the offices of these companies are now the scenes of heated battles between nitwits who watch CNN regularly and actuaries who know how to analyze data.
One of your most interesting posts,certainly the best I have seen.
BECAUSE nothing in big corporations, especially those who stock is publicly traded, takes precedence over the bottom line.
In short, they will lose their ass if they don’t adjust their rates and in this state, they will need to spell out the specific reason for a need to raise rates.
OH!! I know! Its global warming! The heat is killing them!
One astute actuary recently told me that his best employees are the ones who say “I don’t know” more often than anyone else when discussing things that seem to throw actuarial tables out of kilter.
Some of us have seen this reaction to a data based unexpected change before. It appears as a big nail that sticks up in trend line that has been established over a long period of time. You see it and then rush to find out what it is; true or a data entry error. When you find out it is true it becomes critical to find out what it is to prevent further loss. Or, in rare occasions, find out how to repeat the unexpected gain.
You don’t have to be publicly traded for precedence of the bottom line to take first place. In my small company I seldom had financial surprises because I mostly understood all the levers to profit and monitored closely. I have also experienced the year-end review shocks which is why I compiled all year to accomplish the year-end review.
As posted to Vt. Lt., the changes of the last two years are significant and more profound than I expected. They are long lasting and many will become a new normal. The changes took place contemporary with the change in guard from Boomer to subsequent generations much skipping the X gang I think. There is no history to the new gang and not much experience. The slate is cleaned much like burning the library at Alexandria.
Normal is mostly based on experience, not history. New people, new experiences and a new normal just naturally falls into place. Interesting times continue and for us old guys now out of the game and what we behold will be curiouser and curiouser.