Comments on: Dinallo hands an opportunity to Geithner http://blogs.reuters.com/felix-salmon/2009/05/29/dinallo-hands-an-opportunity-to-geithner/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Richard http://blogs.reuters.com/felix-salmon/2009/05/29/dinallo-hands-an-opportunity-to-geithner/comment-page-1/#comment-2174 Sun, 31 May 2009 02:32:48 +0000 http://blogs.reuters.com/felix-salmon/2009/05/29/dinallo-hands-an-opportunity-to-geithner/#comment-2174 While I don’t disagree that consumer regulation of variable annuities should be enhanced, I worry that the one entity which has solid risk management–insurance–may be under a Federal umbrella.

Only a third of the actuarial exams are dedicated to the math–the rest are public policy, history and law. When an actuary becomes a fellow, he knows that the only difference between a Ponzi scheme and an insurance reserve is the actuary. Further, the threat of 50 insurance commissioners–not all of them powerful, I grant you, and generally there is a standard form which most follow, as well as one or two trend-setting states like California and Texas and New York. Still, the threat of actuarial review for each product from multiple states sets a discipline in the insurance risk management world that has no equivalent in the financial engineering world. And until those standards become realized, we should maintain an example of good risk management somewhere in the financial services world. After all, aside from AIG, the insurance industry has been a pretty good example of risk management.

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