June 25: Actuarial roundup

  • Trading in box office futures died in the finance reform bill struck early Friday morning. Recall I was having fun with the idea here.
  • I’m a little late to chime in, but as Post Online summarizes, Florida is making it easier for foreign reinsurers to underwrite U.S. business, and that’s part of a nationwide trend. Foreign reinsurer had to post collateral equal to their liabilities to write U.S. business. Now Florida takes the reinsurer’s financial strength rating into account. This helps Florida – its hurricane exposure means it needs every reinsurer it can get. It also helps the foreign reinsurer, obviously. U.S. reinsurers take another one on the chin.
  • State-based cat (re)insurers don’t charge actuarially sound rates, General Accountability Office finds. (Florida, we’re looking at you.) III summarizes the study. Actual study is here.
  • Obama warns health insurers not to jack up rates ahead of Obamacare’s rollout.
  • Warren Buffett didn’t win a $30 million bet against France in the World Cup, despite the reporting here. It sounds more like he put up a $30 million limit that would pay if the French hadn’t melted down like butter at Three Mile Island. Nate Silver had France’s a priori probability of winning World Cup at 1.92%. Off that basis, Warren probably charged between 2 or 3% of the limit, or between $600,000 and $1 million.
  • 34 seconds: Speaking of World Cup, famed announcer Andres Cantor calls Landon Donovan’s goooooooooolllllll. (h/t esteemed Neil Young biographer Dan Durchholz)
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