Improving Communication in the Insurance Industry
Zachary Brown, Principal, Milliman
In 1752, Benjamin Franklin founded the first American insurance company, The Philadelphia Contributionship for the Insurance of Houses from Loss by Fire.2 The company initially held no reserves. It had no data to assess the risk of fire. Its underwriting relied solely on two carpenters who walked around Philadelphia looking at buildings. Compared to modern day practices, the company’s methods were incredibly crude. Since Franklin’s time, insurance has evolved to become a global, trillion-dollar industry that uses sophisticated techniques to help people and organizations manage risk. Insurance companies employ mathematicians, actuaries, programmers, and data-scientists to build complex technical models and design cutting-edge software. It is increasingly common to find educational and professional development programs geared towards insurance. Students today can major in insurance, earn a series of professional designations on related topics, and attend industry conferences to learn about best practices. The level of technical expertise and domain-specific knowledge in the industry has never been higher.