M7 Ethics

Question 1

What are some common variables that are related to life expectancy:

Answer 1

Occupation, education, income, gender, race.

Question 2

Ethics can be defined as…

Answer 2

“what is good or right for human beings”

Question 3

Proactive vs reactive ethics

Answer 3

Proactive = doing good
Reactive = do no harm

Question 4

Everyday ethics process (3)

Answer 4

1. Idenfify situation/decisions
2. Judgement, what should I do?
3. Action

Question 5

What risk factors are allowed to use to discriminate for Insurance and Super?

Answer 5

Age, sex, marital status, disability. (With conditions)

Question 6

New oppurtinuty in health insurance

Answer 6

Wearables for data capture

Question 7

New opp in car insuance

Answer 7

Telematics sensors in cars.

Question 8

Advantages of more data:

Answer 8

More accurate risk assessment. Better underwriting and pricing.

Question 9

Issues with more data:

Answer 9

• Insurance unavailable for some.
• Less pooling of risk
• data protection/privacy

Question 10

Issue with more data wrt modelling.

Answer 10

As models become more complex, transparency is reduced. Then its harder for actuaries to determine if its fair.

Question 11

Central questions for actuaries

Answer 11

see notes, several important ones.

Question 12

Utilitarianism in laymans terms

Answer 12

What is best or what leads to the best outcome for most

Question 13

Issues with utilitarianism

Answer 13

How do we define “best” and “most” ?

Question 14

Deontology definition laymans terms

Answer 14

Something is right or wrong, irrespective of the consequences.

Question 15

Ethical reasoning framework

Answer 15

See notes.