And of course, I'm from the insurance sector, where sometimes the regulators get all political and want to forbid us from pricing risk accurately.... and then the insurers say "Well, then we'd go insolvent", and then withdraw from the market.
Yeah, highly regulated markets can get really weird. Someone was asking me recently about areas where I could advise on price, and I started out with the list of negatives: nothing medical, nothing related to insurance, etc.
yeah, insurance is specialized. (Then there are more esoteric areas of finance.... if you think insurance is weird....)
Often life/annuity products get financial guarantees wrapped in explicitly, so that has led to all sorts of shenanigans (like destroying a centuries-old British assurance company). For P&C companies, you sometimes get new execs which bring in pricing paradigms from non-insurance/finance areas, and it leads to real trouble (such as "take competitors' prices and undercut by 5%")
And of course, I'm from the insurance sector, where sometimes the regulators get all political and want to forbid us from pricing risk accurately.... and then the insurers say "Well, then we'd go insolvent", and then withdraw from the market.
And then....
As we see now...
Yeah, highly regulated markets can get really weird. Someone was asking me recently about areas where I could advise on price, and I started out with the list of negatives: nothing medical, nothing related to insurance, etc.
yeah, insurance is specialized. (Then there are more esoteric areas of finance.... if you think insurance is weird....)
Often life/annuity products get financial guarantees wrapped in explicitly, so that has led to all sorts of shenanigans (like destroying a centuries-old British assurance company). For P&C companies, you sometimes get new execs which bring in pricing paradigms from non-insurance/finance areas, and it leads to real trouble (such as "take competitors' prices and undercut by 5%")