Risk, Re-/Insurance and Future Thinking
From the monthly archives:
Between 2004 and 2007, fraudulent applications for financial products rose by 25% (to 77,000). In 2007 one in five of those was successful. The Credit Industry Fraud Avoidance System (Cifas), which conducted the study, pointed to two drivers for this. First, inexpensive, high-quality printing technology has made it easier for people to fake supporting documents, [...]
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Following revelations of Mr Spitzer’s own alleged “irregular dealings” there is no little sense of satisfaction on Wall Street at his probable demise: One might call it Shakespearian if there were a shred of nobleness in the story of Eliot Spitzer’s fall. There is none. Governor Spitzer, who made his career by specializing in not just [...]
In his 2008 letter to shareholders, Warren Buffett has a charming little story about the problems of IBNR and the known unknowns (ahem): We also include a large reserve for losses that occurred before yearend but that we have yet to hear about. Sometimes, the insured itself does not know that [...]
