A Pinnacle client recently inquired about a paper regarding an approach to estimating the maximum premium appropriate for a captive insurance company. The author sought to determine a ceiling on the premium a company might pay for insurance by treating insurance as a put option and applying a popular financial tool, the Black-Scholes model. 

The recent Equifax breach of 143 million individuals’ personal data was announced September 7, 2017. The hack included social security numbers, birth dates, addresses, driver’s license numbers and might also include credit card numbers. According to Privacy Rights Clearinghouse, “The number of people impacted and the sensitivity of the breached information may make this the most significant data breach ever.”

Machine learning techniques, particularly Artificial Neural Networks (ANNs), have enjoyed an upsurge in popularity and practical applications in a myriad of disciplines.  The explosion in the variety and volume of available data, coupled with cheap data storage and fast computing power, have placed ANNs front and center in data scientists’ tool boxes. 

When I recently scheduled an OB-GYN appointment, the first available opening was nearly two months out. Many women already wait months to see a physician for routine care. The critical nature of the aging OB-GYN workforce is clear, and this crisis will force some substantial changes for both patients and insurers.

How does an organization protect itself from reputational risk? Purchasing cyber liability coverage, adding safeguards to its IT systems, ensuring its employees behave in a professional manner both inside and outside the company walls and paying close attention to social media platforms come to mind. But are all of these even enough? Most organizations understand they must plan ahead and be prepared to get out in front of an adverse event to reassure their audiences that business will go on as usual.