Description: Long-term guarantees place unanticipated burdens on companies because of the degree to which the environment can change. These risks are compounded when combined with estimation of policyholder behavior, especially when solid experience data is not available. When risks are properly reflected, long-term guarantees do not always provide value to the customer in excess of the manufacturing cost. The product development actuary is challenged to compare customer value to company cost and use that measurement to identify novel ways to design products to better serve customers.

Description: Opportunities frequently come in the guise of change within a company or the industry and the person who is willing and able to adapt to the changing environment can benefit from these opportunities. Whether the change is voluntary or involuntary, there will always be challenges faced and benefits reaped; and the more you prepare yourself for the possibility of change the quicker you’ll be able to adapt.