We Interrupt This Blog for an Earthquake

/ SupremeCmdr / Leave a comment

When someone mentions “earthquake” I tend to think immediately of San Francisco or Japan, perhaps the horrific quake that just jolted China. But Oklahoma?

On June 6, a minimum of four small earthquakes were recorded and confirmed in the Oklahoma City area by the Oklahoma Geological Survey. The largest quake occurred around 1:15 a.m. and measured 2.5 on the Richter scale. The epicenter was near the Interstate 44-Interstate 40 junction. This location is about 20 miles from my house.

This information is for all of you out there who believe there is nothing in the state of Oklahoma except for tornadoes. We have earthquakes too. Just another reason why we love this place.

Flat Wind Damage

Addendum – I forgot to mention on the day of the earthquakes we had sustained flat winds between 35 and 45 MPH with gusts exceeding 50 MPH.  Note how the winds split this tree nearly in half.  This happened two blocks from the world headquarters of UW Solutions LLC.

Five Minutes of Fame (literally)

/ SupremeCmdr / Leave a comment

A year ago I was in Phoenix to participate in one of the sessions at the spring SOA meeting. I was given five minutes to make a point. While five minutes is not a lot of time, it was more than enough time to make a point, especially if no one else is debating you. To celebrate my five minutes of fame I have reprinted my brief, yet scintillating talk. The point I was trying to make was underwriting needed to become an insurance company’s strategic intellectual asset. Of course, re-reading what I wrote/spoke a year ago, I never mentioned my point in exactly that fashion. Not that it mattered. After all, I was talking to a bunch of actuaries.

Society of Actuaries Life 2007 Spring Meeting

May 10th Session 43

Speed Underwriting: At Least 10 New Ideas in 90 Minutes

Strategic Outsourcing

Strategic outsourcing represents a significant shift in the way businesses operate to stay competitive in the global economy. Outsourcing strategies have evolved from short-term tactical cost savings to higher-level strategic initiatives that drive revenues and profits. Cost reduction is tactical, not strategic. As insurance companies focus on core competencies and migrate away from fixed cost to flexible variable cost models, outsourcing becomes more and more attractive. Outsourcing must be pursued on a partnership basis. The buyer should get excellent service at a reasonable cost and the provider should make a profit or service quality will suffer.[1]

Strategic outsourcing begins with careful planning. Explore your strategic options for the current reality: a supply and demand imbalance in underwriting talent that will persist for many years to come. Downsizing and demographics have combined to create the current reality. What are your company’s strategic plans to attract, acquire, and retain talent? What does your company’s long-term underwriting training program look like? Does your company have a strategy to capture its underwriting knowledge before that knowledge walks out the door?

This reality is not a short-term threat. Unfortunately, our minds do not perceive longer-term threats because the human mind is not equipped to comprehend the modern world we have created.[2] Decades of downsizing and the aging of the Boomers are simply two drivers of strategic outsourcing.

Skills and knowledge can be taught. Talent must be acquired.[3] And talent needs to be matched with the work to be done. The scarcity of talent demands different approaches.

Combined intelligently, your company’s core competencies plus extensive outsourcing strategies can improve returns on capital, mitigate risk, provide greater flexibility, and make you more responsive to the needs of your customers.

Disclaimer: Strategic Outsourcing Program LLC Edmond, Oklahoma is not me. I was doing a Google search with the term “strategic outsourcing” and I found this company based in the same town I live in.

[1] The American Management Association (AMACOM) published a guide in 1999 titled Strategic Outsourcing: A Structured approach to Outsourcing Decisions and Initiatives by Maurice Greaver.

[2] New World New Mind, Robert Ornstein and Paul Ehrlich. This is a great book published by Simon & Schuster in 1989 and will provide a fundamental understanding of our cognitive shortcomings.

[3] First, Break All the Rules, Marcus Buckingham and Curt Coffman. Another fine book from Simon & Schuster that explains why conventional thinking in business is not always correct.

Medical Information – Enough is Enough or Is It?

/ SupremeCmdr / Leave a comment

My thoughts have crystalized on the amount of medical information you need to know to compently underwrite life mortality risk. Consider what follows to be totally unscientific and strong personal opinion based on experience. I developed this opinion from reading way too many APS’s in my lifetime and some recent observations from #1, the pre-Med student. After shadowing some doctors and observing a few colonoscopies, an EGD and knee arthroscopy up close and personal, #1 made this comment:

“Wow, specialists need to know a lot more than a family medicine doctor.”

Classic Duh, what do you think? But his comment got me thinking about what we do for fun and money. I have always thought I would make a good GP/Family Medicine type of doctor. Aside from the real world reasons why I didn’t pick that path, I understood intuitively why I have felt that way. I am the ultimate generalist. I like to do something intensely for a few years and then do something else. This drives my wife crazy. It’s not a real good strategy either for building up a nice pension. I also don’t recommend this strategy for career development. But hey, it’s what I am.

I’m drifting here. My thoughts have crystallized. We are underwriters. We don’t need nor will ever use the knowledge a specialist in medicine requires. All we need to be are halfway decent family medicine practitioners with an emphasis on preventative care. We need to understand what diseases and what behaviors will kill you. So how do you become a quasi-family practice person without the medical school training? I have to think about this some more. As always, comments and input are appreciated.

Remote Underwriting – Half-Baked Thoughts

/ SupremeCmdr / Leave a comment

Several years ago I led a project team that designed and implemented a paperless work flow system for new business and underwriting at a company I once worked for.  I saw the future and remote underwriting definitely was going to be a significant contributor to the ability of companies to attract and retain talent.  Envision a cadre of experienced underwriters working from their homes in a human network that rewards individual members of the group for finding work not only for themselves but for others within the network as well.  Kind of a modern day intellectual collective.

At the upcoming AHOU meeting there will be a networking breakfast session on the topic of remote underwriting.  Due to a number of reasons involving comittments you really don’t want to know about, I will not be in Miami for the meeting.  But since I’m not going, I’ll toss in my two cents for whatever its worth.

“The discussion will cover all of the unique issues associated with remote underwriting, inlcuding technological concerns, training, scheduling, phone coverage, processes, management, and any other concerns brought to the discussion by attendees.”

Here we go:

  • Technology.  The technology to enable remote access to company systems has been around for many years and remote underwriting is a reality for many.  If you don’t have the technology, you better get it.  But more importantly you need to build a solid business case.  With the supply and demand equation favoring the underwriter and not the employer, each year that passes without the commitment to the technology puts a company in a more difficult position to attract talent.
  • Training.  This is a big one.  FLMI, FALU, CLU, yada, yada, yada.  Companies need to first figure out what the gaps are and what needs ought to be addressed through training.  Then create, buy, outsource, something, anything, to address your training needs.  How do you train a dispersed band of underwriters without breaking the budget?  See point number one.  Technology.  Try a webinar.  Check out http://www.gotomeeting.com.
  • Scheduling.  This is not an issue limited to remote staff.  You will have scheduling issues whether your underwriters are all under the same roof or if you have them all over the globe.
  • Phone coverage.  See scheduling above.
  • Processes.  Look for best practices.  Find out what has worked and what hasn’t for companies using remotes.  This isn’t and never will be a one size fits all answer.
  • Management.  Communicate clearly and often.  How do you make remotes feel part of the team?  What are the retention issues?  Can mentoring and coaching (not the same as training) get done?  Can remote mentoring be done at all?

Well, I think I’ve raised more questions than answers.  If someone attends this session let me know how it goes.

Lifelong Learning

/ SupremeCmdr / Leave a comment

I was thinking the other day about reading a book a week and the value of lifelong learning.  Never make the mistake that learning stops when school stops.  Be a lifelong learner.  Understand that stuff changes all the time and there is always more to learn on your path to success.    Try the following strategy:

Teach yourself what they don’t teach you in school.  Sounds simple doesn’t it?  Well, it’s not really that simple.  Lifelong learning is not simple because school may not teach you a lot of useful information for your chosen line of work.  If you’re a recent entry to the world of work, you probably figured that out already.  The problem is not just what doesn’t get taught.  It’s deciding what to teach yourself to become the best you can be on your chosen path.

There are a lot of people who go through their lives trying to figure out why they’re here and what they’re here to do.  I personally know some boomers who are still trying to figure what they want to be when they grow up.  Imagine yourself at 60 trying to figure out what you want to be when you grow up!  Don’t let this happen to you.  Take one simple action.  Make a decision.

The decision you make may not be the “right” decision but at least you have made a decision.  Indecisiveness will doom even the most well intentioned.  Make up your mind.  What you settle upon may not be the grand purpose for your existence but at least it’s a start.  And if whatever you choose turns out to be not what you expected or wanted, then try something else.  As people age we limit ourselves to what is possible.  Try something you’ve never done before.  Maybe, just maybe, you’ll surprise yourself and begin the journey that is yours alone.

It helps to have an uncommon curiosity about everything to be a good underwriter. Arguably this is true across many different professions.  You have to want to learn before you truly learn.  I spent some time this past week adding more links to my sidebar.  I wanted a kind of underwriting friendly mini-portal.  Click through and continue your lifelong learning.  If you have any suggestions for a good website, email me or comment and I’ll add a link.

Medical Information – How Much is Enough?

/ SupremeCmdr / Leave a comment

So how much medical information does an underwriter need to know to become a competent underwriter?  I don’t have an answer to this question but it’s been something I’ve thought about since attending a seminar and tour of the OSU medical school facilities in Tulsa, OK.  I was impressed by the facilities and quite frankly could live in the library.  I’ll be returning to this question over time as my thoughts crystallize.  Right now, my answer is:

  • More than the average human, and
  • A lot less than what doctors need to know.

So what exactly as underwriters do we need to know and how much is enough?

But If You Don’t Mind Tornadoes…

/ SupremeCmdr / Leave a comment

Despite the tornadoes, ice storms, and occasional floods Edmond Oklahoma was listed as one of the best cities in the country to live and do business. I’ve provided a link to the full article under Lifestyle.

When I left my life as a corporate executive I knew if I found another job with similar pay and benefits it would mean moving and starting all over again. There are not a lot of insurance companies in the greater Oklahoma City area. Or I could stay put and figure out a way to make a living.

With the remote underwriting trend my decision was almost a no-brainer. Talent is scarce and the companies that have employed the technology to push their underwriting files out to be evaluated now have the distinct advantage. But the ultimate advantages go to the underwriter.

It’s all about lifestyle.

We Interrupt This Blog for a Tornado

/ SupremeCmdr / Leave a comment

F1 Damage

In the early morning hours of March 30, some severe weather blew through the city I live and work in.  The tornado missed our house by about three miles. We managed to sleep through the sirens and didn’t realize there were tornadoes on the ground until our son called at 3:00 AM to find out if we were OK.

Risk is everywhere. Time to buy a weather alert radio.

This is what an F1 can do to your house.

Discipline

/ SupremeCmdr / Leave a comment

“Nothing of importance is ever achieved without discipline. I feel myself sometimes not wholly in sympathy with some modern educational theorists, because I think that they underestimate the part that discipline plays. But the discipline you have in your life should be one determined by your own desires and your own needs, not put upon you by society or authority.”

Bertrand Russell

I have often said that nothing is achievable without discipline.  I got this message from my father repeatedly.  I really got the message one day  at a clan gathering.  It was the summer before I got married and the family got together in Marlboro, MA.  We got a couple of rooms at a local hotel and had a great time exploring Boston.

One of the dinner stops was a fine local restaurant in Marlboro.  As the family settled in the waiting area, we got drinks and waited for our table.  I shared a small table for two with my Dad.  He was drinking a vodka martini and I had a glass of red wine.  As the conversation progressed, I asked a simple question:

“What is the key to success?”

Dad sort of stared off into space like he did often and suddenly, with a fury that surprised me banged his fist onto the tiny table.  I had to grab my wine glass to stop it from falling over.  Customers fifteen feet away stopped their conversation to see what was wrong.  I was stunned and couldn’t say a word.

“Discipline.”

That’s all he said in response to my question.  And he went back to his vodka as if nothing had happened.

As I reflect upon what success is and how success is achieved, it becomes abundantly clear that discipline is paramount.

Your life is to be what you want it to be if you have the discipline to do whatever is necessary to achieve your desired outcome.  Be less concerned about what it is you feel you should be doing and more concerned about becoming more of who you are.  I am oftentimes asked what my wife and I have done in raising our children, both of whom are doing well in their chosen pursuits.  My answer has always been simple.  I did whatever I could to help them become more of who they already are.  We continue to help them be more of who they already are.  Surprisingly simple, eh?  Check out the following quote:

“All people are called to be someone and to do things – it is part and parcel of human existence. Discovering and becoming who we are supposed to be, and what we are meant to do in the world is a life-long process of growth and change. This process involves certain commitments and these become revealed to us along the way. Informal educators can play a special part in encouraging these processes. Their role is to work so that people may shape and follow their calling.”

Reproduced from the encyclopedia of informal education [www.infed.org]

So where were we?  Ah yes, how to read a book a week…

Your Calling

/ SupremeCmdr / 2 Comments

There’s a piece of scrap paper I’ve been carrying around with the following thoughts on it:Try many things. Find what you love and do that. Then figure out how to make a living doing it. Work is transformed when we change our attitudes towards work.

I didn’t write these words ( and my deepest apologies to the original author whom I would credit if I could remember who it was ) but I want to preserve these thoughts and the ideas because they are powerful ideas. As time goes by, this simple approach towards work has been changing my attitudes about success. Lately, I’ve been listening a lot to the music of JJ Cale, an OKC native who seems to embody this simple yet powerful idea in his life and work. One of his songs which was rerecorded on his recent collaboration with Eric Clapton consists of one chord. One chord! And to top it all, the guys were winners of the Grammy Award for Best Contemporary Blues Album “The Road to Escondido”.

One chord. Simple is good. Do what you do. Be good at what you do.

The author Thomas Moore has written:

“Power that comes from unexpected places. It comes from living close to the heart, not at odds with it. The soul appears in the gaps and holes of experience. We have all experienced moments when we’ve lost a job or endured an illness only to find unexpected inner strength. Be good at what you’re good at. Many of us spend time and energy trying to be something we are not. In considering who we are not we may find the surprising revelation of who we are.”

Several years ago I began to recognize what seemed to be a growing imbalance between underwriting supply and demand. I decided then to refocus on my underwriting skill set. I figured there would always be work and so far, I’ve been right.

Michael Novak is an esteemed theologian, author and former US ambassador who has written over 25 books. In one of his books titled Business as a Calling. Novak writes about the four characteristics of a calling. First, each calling is unique to each individual. Second, a calling has certain preconditions that involve more than just desires. A calling requires that the individual have talent. For the calling to be right for a particular person it must match and use his abilities. Third, a true calling reveals itself through enjoyment and a sense of renewed energies that engaging in the calling brings. Fourth, callings are not easy to discover. Many false paths are taken before the truth path is recognized.

It has taken a long time to be me.