future pathways - actuaries

Fe PathwaysFuture PathwaysFresh perspectives from actuaries of the future

Auckland, 18 March 2013Wellington, 19 March 2013

…A Traumatic Future?

What is Trauma Insurance? 

Serious Medical Events?

Serious Medical Events?

What is the Insured Benefit?

Birthplace of “Dread Disease Insurance”?

1983

Whose Idea Was It?

“You don’t need  insurance because you 

are going to die but  because you are going 

to live.”

“As a medical doctor, I  can repair a man 

physically, but only  insurers can repair a  patient's finances.”Marius Barnard

Using the Benefit Payout? 

Other Uses of the Benefit Payout …

The “Big 4” ?

NZ Trauma Claims

Source: Gen Re Dread Disease Survey 2004‐2008 

What affects Trauma risk rates?

Why Could It All Turn Sour?

NZ market …

NZ market … Breadth of Cover

Conditions covered on a trauma policy: 

–Britain has a list of 23–USA has a list of 7–South Africa Comprehensive covers 23‐30

–South Africa Core covers 3‐4

… NZ covers around 43

NZ market … Depth of Cover

NZ market … Depth of Cover

Ratings Houses:What Do They Do?

Ratings Houses:Who Are They?

Company IRESS Strategy QPR

A 1 1 3

B 4 3 4

C 5 6 1

D 6 4 2

E 2 7 5

F 3 6 6

G 9 2 7

H 7 9 8

I 8 8 9

Ratings Houses:Real Life Example

Ratings Houses:Confused?

Scarynomics

# of Definitions Pricing

Definition Strength

Scarynomics

Definition Strength

A Walk Down Memory Lane…

A Walk Down Memory Lane…

The First Telephone…

…The iPhone 5

The First Computer…

…The MacBook Air

Early Open Heart Surgery…

Keyhole Heart Surgery…

Future Nanobot Heart Surgery?

What Can You Do?

The GFC…

…Avoidable?

Trauma Insurance…

…Don’t Follow The Herd

Trauma Insurance…

…Don’t Play The Game

Trauma Insurance…

…Stop The Creep

Be Heard…

Be Respectful…

Be Brave…