The First Insurance Policy Dates Back to Ancient Babylon Insurance has existed since 1750 BCE when merchants in Babylon paid lenders an additional sum to guarantee they wouldn’t have to repay their loans if their shipments were lost or stolen. Lloyd’s of London Began in a Coffee Shop What is now one of the largest...
Introduction The insurance industry operates on the principle of risk management, and one significant category of risk stems from unforeseen natural events—commonly termed as “Acts of God.” These include catastrophic natural phenomena such as earthquakes, hurricanes, floods, and volcanic eruptions, which are beyond human control and typically unpredictable in nature. In insurance contracts, “Act of...
Smog, a hazardous mix of smoke and fog, has become an increasingly pervasive issue in many South Asian regions, particularly during winter. This environmental phenomenon, driven by urbanization, industrial emissions, and vehicular pollution, poses significant health and property risks. For the insurance industry, these risks translate into a rising number of claims and a call...
Millennials and Generation Z (Gen Z) are often perceived to have a negative or indifferent attitude towards insurance. However, this perception doesn’t fully align with reality. Both generations are more interested in insurance than commonly assumed, but their behaviors, preferences, and misconceptions reveal differences worth exploring. Let’s uncover these myths and the truths behind them....
Climate change is no longer a distant threat but a present-day reality reshaping industries and economies globally. The insurance sector stands at the forefront of managing the fallout from these changes as extreme weather events and environmental hazards escalate in frequency and severity. For actuarial analysts, integrating Environmental, Social, and Governance (ESG) principles into their...
The actuarial profession is undergoing a significant transformation, driven by rapid technological advancements, global economic shifts, and an increasing focus on sustainable practices. These changes are reshaping the landscape of risk management and insurance, presenting both challenges and exciting opportunities for actuaries worldwide, including those in Pakistan. Embracing Technological Advancements The explosion of data has...
Frank Redington, one of the most legendary figures in actuarial history, is often celebrated not just for his technical brilliance but for his profound insight into what it means to be a truly impactful professional. In 1968, he famously remarked: “An actuary who is only an actuary is not an actuary.” This statement has become...
How to Manage Time, Energy, and Attention for Optimal Productivity When anyone first starts trying to improve their productivity, the one recurring piece of advice everyone gets is to manage your time. However, this rarely yields the desired result. This is because time is only one aspect of productivity. True productivity comes from balancing Time,...
In the ever-evolving world of actuarial science, striking the perfect balance between accuracy and explainability has long been a challenge. Traditional models like Generalized Linear Models (GLMs) are appreciated for their interpretability, while advanced algorithms like Gradient Boosting Machines (GBMs) are sought after for their predictive prowess. But do actuaries need to choose one over...
In the complex world of insurance, consumer behavior plays a critical role in shaping purchasing decisions. The decision-making process involves navigating emotional factors, cognitive biases, and uncertainties that can influence how individuals assess their insurance needs. For instance, a parent might choose life insurance driven by love for their family, while fear of financial instability...