Joe Herbers, managing principal of Pinnacle Actuarial Resources, has over 35 years of actuarial experience. He has seen major industry changes from asbestos and environmental claims liabilities to the emergence of claims-made policies. He has witnessed the advent of CAT models and the nascence of construction defect claims. For decades, he has seen new problems emerge and the creative solutions that have followed. I sat down with Joe to discuss his perspectives on COVID-19 and how the pandemic may affect younger, current and future actuaries and those others working in today’s insurance industry.

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. 

I will be a senior at Indiana University (IU) next year. I am double majoring in accounting and finance, with minors in economics and mathematics. I will also serve as the vice president of IU’s Actuarial Club next year, and I currently serve on the Kelley School of Business Equity and Inclusion Committee. The COVID-19 pandemic had a substantial impact on my summer plans, as I am sure it did for every single person around the world. What stood out about the entire situation was how quickly everything moved. There was seemingly new information every single day, and the majority of it wasn’t good. Everyone at IU went on spring break, and two days later we were notified that classes for the remainder of the semester would be conducted online. 

In 2020, the Minority High School Scholars Analytics Academy, or MHSSAA, will mark its 25th year. The time is right once again to pause and honor this program and all that it represents to the insurance industry, the actuarial profession and the students it serves. Through the MHSSAA, participating students from around the country learn about how insurance works, the requirements of the actuarial profession and the role of analytical skills in solving real-world business problems.