In the insurance industry, an actuary is a technical specialist whose job is to analyse the likelihood that policy holders make claims against their insurance policies. Actuaries use mathematics, economics, computer science, finance, probability and statistics, and even business skills in their work.
If actuaries themselves don’t buy whole life and investment-linked policies, what does it say about these policies?
Christopher Tan, CEO of Providend, wrote in the Sunday Times today:
“I asked an actuary (someone who designs insurance products) who had left an insurance company what he buys for himself. Like many former actuaries I have spoken to, he said he would never buy an investment-linked plan or a whole life plan as it is just too expensive and doesn’t make sense. He has protected his family with term plans. So, if the chef doesn’t eat his own cooking, why should we?” (boldface mine)
If an actuary doesn’t buy his own insurance products, would you?