Dr Doron Samuell, a psychiatrist and economist based in Australia, has been honoured with the Outstanding Public Policy Research award from the American Academy of Actuaries.
This accolade, bestowed at the academy’s gala dinner in Tennessee, acknowledges Samuell’s research in behavioural economics related to the insurance industry. The award includes a US$7,500 prize.
Samuell – along with his team comprising Professor Demetris Christodoulou, Professor Robert Slonim, and Dr Franzi Tausch – conducted a field study with a prominent international life insurer.
The study aimed to enhance customer disclosure by encouraging clients to reflect on their personal values. Its findings showed a significant 40% improvement in the accurate reporting of smoking habits in new insurance applications.
“Insurers have a problem with dishonest customers. The temptation is to avoid tackling the issue and let honest customers subsidise dishonest ones, maintaining profits by increasing premiums,” Samuell said. “This is not only unfair to good customers, but it ends up making the cost of insurance prohibitive to many, with the only ones willing to pay being highly risk-averse or knowing they are going to claim.”
Commenting on Samuell’s research, American Academy of Actuaries director of research Steve Jackson PhD said: “The paper is an excellent example of the value behavioural economics or behavioural finance research can bring to addressing challenges within the insurance industry. The review panel noted the experiment both has immediate, practical implications and could encourage new research and innovation by others.”
Further research by Samuell and Christodoulou identified major issues with customer honesty in both Australia and North America.
The North American study indicated that eliminating financial advisors from the disclosure process could potentially reduce premiums for certain products by up to 20%.
Samuell will present his research at the academy’s annual meeting in October in Washington, DC.
In other news from the actuary sector, Australia’s Actuaries Institute celebrated Nicolette Rubinsztein’s recognition as a Member of the Order of Australia (AM) for her significant contributions to business, finance, and commerce.
The recognition highlights Rubinsztein’s extensive work in superannuation and retirement policy, along with her advocacy for gender equality and climate change initiatives.
As president of the Actuaries Institute in 2019 and a member of the governing council for five years, Rubinsztein prioritised gender diversity within the actuarial profession and worked to improve STEM outcomes for female students. She actively participated in the institute’s Retirement Incomes Working Group and the Public Policy Council Committee.
