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)
1970 -- 100
1975 -- 150
1979 -- 200
1980
-- 250
1982 -- 300
1984 -- 350
1986 --
400
1988 -- 450
1990 -- 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:
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