Few industries will be impacted by the compounding effects of climate change as severely as the insurance industry. Extreme climate-related disasters have increasingly dominated the media. Some recent climate data has indicated that expansive wildfires, hurricanes, extreme flooding and prolonged droughts are negatively affecting more and more people. By taking timely action, the insurance industry can help lead change to combat the growing regularity of catastrophic events.

At least two things came to fruition from the 1960s science fiction TV shows many of us watched as children. First, as the title of this blog suggests, it is now acceptable to split an infinitive (that is, insert an adverb between the word “to” and the verb). Second, although we still don’t have flying cars, it is possible to conduct meetings and converse with people miles away while looking at a screen. This came in quite handy as we planned our 2021 Pinnacle University program.

We were very pleased to be chosen to participate in the Pinnacle U program for 2020. We decided to investigate the ever-evolving role of simulation in insurance, with a focus on the practicality and implementation of the Monte Carlo Simulation (MCS). Our presentation followed a funnel approach starting with the general procedure for any type of simulation. We then narrowed in on theoretical and practical methods and uses of simulations for the insurance industry. Finally, we focused specifically on MCS and a few applications of that particular simulation technique.

One of the interesting trends during the COVID-19 quarantine was the dramatic increase in pet adoptions. Furry, four-legged family members require financial investment in their daily care. Typically, the costs of food, toys and grooming are well understood by first-time pet owners. Owners may be less aware, however, of veterinary expenses and liability claims that can costs thousands of dollars. They should understand these often unforeseen and potentially costly pet expenses to understand how risk can be mitigated through pet insurance. 

Pinnacle University (Pinnacle U) is a complex program to pull off. Designing, planning and executing an event like Pinnacle U, usually requires a lot of flexibility in the process. This year, however, required a higher level of flexibility than we might have ever expected. Pinnacle U is an immersive, in-person symposium at which students, professionals, panelists and participants meet and spend the day discovering and debating important actuarial issues of the day.