If we were to give a theme for this issue, it would be “cooperation.”
You can learn about our new cooperative initiative with The Institutes, a move that reflects changing times and keeping up with new developments.
The cooperation among actuaries and others is an underlying theme of our cover story “Pricing Adjustment.”
I recently met an underwriter for a medium-sized insurance company. Her job is to place applicants in the proper risk category when they are not clearly within a defined class. She places the risk in a class that she feels has similar expected medical costs, disability exposure or longevity.
Being aware of our AR cover story, I steered the conversation to the tension between underwriters and actuaries. She admitted there is some tension at her company. At first, we were inclined to blame the conflicts on length of service — the two professions have been around a long time and view risk differently. I wondered if the conflict was more likely among older professionals, but she countered that some of the oldest underwriters and oldest actuaries have the best rapport with their professional counterparts.
Conflicts exist between nearly every professional group — nurses versus doctors, claims versus sales, agents versus underwriters, actuaries versus accountants, and the list goes on.
We came to the conclusion that neither the underwriter nor the actuary have all the information, and that they need to rely on each other to get a complete picture. The successful companies know how to make the different professions cooperate, rather than contest.
Reading the story about the ratemaking seminar in Kuala Lumpur, I realize that cooperation has no borders. Within the USA, the CAS was a gold sponsor of the Gamma Iota Sigma International Conference.
But sometimes a long-standing cooperation will end. As Steve Lowe mentions in his President’s Message, changing conditions can sometimes be a change for the better.
Finally, congratulations to the new Fellows, Associates and CERAs. I’ll bet no one had to tell you to smile for your photo!
