I know how jealous you all will be, but yesterday I had the pleasure of attending the Fall seminar of the Midwestern Actuarial Forum. I thought I would highlight one part of the meeting, which was a presentation by representatives from Deloitte Consulting, entitled: Changing with Climate Change: An Insurance Industry Study. This link shows that agenda item, in case you don’t believe me.
The presenters of this study were three actuaries. They are credentialed actuaries. I am sure that they are fine people and do quality work for their firm, and this is not an attempt or effort to in any way undermine their work as actuaries. I am also an actuary. I know well that I am not a climatologist, that my view of the subject is subject to ever more scrutiny than that of a climatologist, and that no matter what I do or present, there will always be a skepticism (some healthy, some simply dismissive without consideration of the presentation itself) that I cannot possibly know the full story behind temperatures and data and models because I am not a climatologist. OK, I understand that. But, in fairness, if I am so easily dismissed, then the same standard should be held up to other actuaries who start talking about climate change.
Since I can understand and appreciate that criticism, I chose instead to not go there. Instead, I was very interested in what they would actually present, and in what context.
It would be an understatement to say I was extremely disappointed with this presentation, and I honestly was embarrassed that it was presented by actuaries to actuaries. Again, I think this is NOT necessarily an actuarial issue, and so it does not speak to their abilities to evaluate reserves, price products, value companies and pensions, or do whatever else they may do in their firm. I wish there was a copy of the presentation online that I could link to so I could demonstrate my concerns. Should there be a link to the power point that goes up I will direct you to that. Read the rest of this entry »