Insurance companies are working hard to renew their business models. A huge part of that is a modernised approach to actuarial practice, but why and how? I asked my colleague, actuary Diego Rivas. The insurance business looks like a smooth, calm river from the outside. Is that image misleading? DR:
Could smart cities and social media be the perfect match? Politics is a divisive issue and not simply from a philosophical standpoint. Different sections of society have very different engagement levels. We could postulate many reasons for this, but the real question is, how can government re-energise citizen engagement in
Most of us occasionally stand back and marvel at the meteoric rise of businesses succeeding in the algorithm economy. Not only are they steeped in data decisioning, but it’s also in their DNA. True, they are fortunate to be born of big data and in the advanced analytics era. But
One of the main reasons for the last financial crisis was that some of the analytical models used to estimate risk were incorrectly built and used. Resulting regulations on the US market including the Dodd-Frank Act and the Comprehensive Capital Analysis and Review (CCAR) therefore require the use of an
Model risk management is an important issue for companies in a number of sectors. All models – to predict demand, for example, or to support business decision making pose some risk. But both model complexity and regulatory requirements are increasing around the world, and model risk management is, therefore, becoming considerably
A few years ago, PwC announced that procurement fraud was the second-most commonly reported economic crime worldwide. It’s a broad term, covering everything from bid rigging and supplier collusion to duplicate invoicing and expenses fraud. In a nutshell, though, it’s what happens when your employees or supplier network fiddle the
As I have mentioned before, I am a gamer. I am also a hobbyist game developer and an employee. So it probably won’t come as a surprise that I am also interested in gamification. This is the use of game-like techniques in nongame contexts, especially but not exclusively business, with the
In the first part of this series, I argued that dealing with artificial intelligence (AI) and ethics is not a purely philosophical or sociopolitical issue. One thing is clear: The ethics debates will continue this year, and they will be more about the realistic possibilities and risks of AI. Companies
As machine learning and artificial intelligence (AI) capabilities develop in leaps and bounds, we are seeing the fulfilment of concepts and ideas that only a few years ago seemed like pure science fiction. Every day seems to bring a new story of how AI will help humans do what we
Application fraud now accounts for 20 percent of all fraud losses in banking. So why is it still flying under the radar for many financial institutions? One reason is that many banks and lenders still write off application fraud losses as “bad debt” rather than fraud. In other words, they
