Real-Life Communication
An actuary spends a lot of time translating numbers into information
that an insurance company can use for a variety of things, including setting
premiums and even creating new insurance products.
However, actuaries
still need communication skills. Actuary Louise Anderson says students interested
in becoming actuaries shouldn't neglect courses in literature and the humanities.
"It's too easy to become one-sided," she says.
You are an actuary with
an insurance company. Your boss has just stopped by your office to talk about
the future of health insurance.
"Is there going to be a growing market
for private health plans?"
You pull out two charts you've been looking
at and start to talk in terms of actuarial concepts like GAAP, IBNR and SWAG.
The
boss gives you a blank look. You realize you've got to convey your message
in a way everyone can understand.
Here are your two charts. Review
List 1, and write a paragraph explaining what is happening to health-care
costs.
List 1
Price indices for health care
(dollars
per person)
2000 -- 100
2005 -- 150
2009
-- 200
2010 -- 250
2012 -- 300
2014 --
350
2016 -- 400
2018 -- 450
2020 -- 500
Here is your second chart. Explain which two age groups will probably
be the biggest insurance customers and why.
List 2
Population
by age group
0-4 -- 3.6 percent
5-9 -- 3.7 percent
10-14
-- 3.8 percent
15-24 -- 7 percent
25-34 -- 8.9 percent
35-44
-- 8 percent
45-54-- 5.3 percent
55-64 -- 4.3 percent
65-74
-- 3.4 percent
75+ -- 2.1 percent
For more information and news on the insurance business, read up
on all the insurance news you can handle:
Yahoo! Finance
Business News
Internet:http://biz.yahoo.com/news/insurance.html