Description: The author briefly describes a hypothetical example of several unconscious biases in the workplace, drawing upon the behavioral economics work of Kahneman and Tversky. He presents data to refute the snap judgments that are all too common in human interaction.

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.