A historical collection of our writing.
In the previous post in my mini-series on insurance fundamentals I provided a numerical example that has a 1 in 100 probability of a loss of $50. I explained how the fair rate to insure this would be 50 cents, because that’s the amount at which the expected financial loss equals the premium […] Read more (opens Continuations in a new tab)
AlphaGo has won its series in the game Go against grandmaster Lee Sedol 4-1. I wrote an initial post about AlphaGo after its first victory against a lesser ranked player. Humans have very big brains compared to the neural networks used by the program which shows that humans are unlikely to be able […] Read more (opens Continuations in a new tab)
In the two previous posts on insurance fundamentals, I introduced a fundamental inequality relating payouts to premiums and the concept of risk aversion. Today we will look at this through a bit of a numerical example. We will look at a risk that has a 1 in 100 chance of occurring and when it does […] Read more (opens Continuations in a new tab)
Video is everywhere these days and for good reason. Even a short video clip contains a lot more information than a still image. But playing back videos in a way that works across browsers and devices has been tricky. Just using the HTML5 video tag means you have no control over the controls on the […] Read more (opens Continuations in a new tab)
In my first post on insurance principles I introduced the inequality that has to hold for the industry as a whole and also for any one insurance company to stay solvent (yes you can collect interest on premiums, so consider this appropriately adjusted for timing of cash flows already). But what […] Read more (opens Continuations in a new tab)
Yesterday with the NYU Stern class that I am co-teaching with Arun Sunderarajan we focused on the fundamentals of different businesses. The class is about product market fit but looking for that doesn’t mean you can ignore the economics of the market in which you operate. If you want an example of […] Read more (opens Continuations in a new tab)
