Not exact matches
Companies across the board will get rid
of their bad mortgages, and also their bad car loans, furniture time payments, credit - card loans, student loans — all the debts that any competent
actuary could have
told them never could have been paid in the first place.
With a passion in her eyes, Worthen will
tell you that there are different types
of actuaries, but they all pretty much do the same thing: measure risk for businesses and forecast futures using mathematics.
At my fellowship admissions course for the Society
of Actuaries, I remember arguing with a consultant over these ideas, where she
told me that longer - term incentives were unrealistic.
When I was 20 + years younger the new chief
actuary of a subsidiary I was in came and
told me his tale
of woe.
Mortgage insurers do not disclose the details
of this test, although we are
told in their financial statements that their
actuary has opined on the subject.
A few weeks later, he informed me that an
actuary from Goldman Sachs (yes), would be dropping by to
tell about one
of their new derivative contracts that would enable us to write floating rate GICs profitably.
I
told the head
of that division that he was fortunate to have business - minded
actuaries.
One
of the presentations was by Stanley Diller, a managing director
of Bear Stearns, who insulted all
of the
actuaries at the conference by
telling them the the insurance industry was dead wrong for talking about yields and spreads.
From
actuary tables representing decades
of demographic observations, insurance companies can
tell with a high degree
of accuracy what the probable remaining lifespan is for a man or woman a given age and lifestyle.
Time and future
actuaries will
tell you how much
of an impact you can have, although it's likely to be a large one.