Workshop NN Group: Be a CFO

This workshop requires a laptop! If you have one, please bring it.

For the students with a quantitative background NN made a fun game! The student will be the CFO of a large insurance company and have to make all the decisions. What do you need? Quantitative insight, learning ability and.. a bit of luck!
An insurer is a company where many policy decisions are made based on quantitative analyses: which investments do we purchase, how much capital do we hold and what is the reinsurance policy. An insurer has investments and obligations that must be valued: what value do you attach to a lifetime benefit to a person? What is the value of a mortgage loan? In addition, there are legal requirements for the equity that an insurer must hold: this required capital is based on the risks that an insurer has. These calculations are also complex. Investments, capital and reinsurance choices must all be analysed for the impact on the required capital and the revenues and costs.
The game involves giving players a brief explanation of how an insurer’s finances work. Then they start working in small teams with a computer program. The students can make choices based on a balance. After they make their proposal, we see what happens in a year; which is uncertain. The students then get to see the situation of the insurer at the end of the year and hopefully the insurer doesn’t go bankrupt! After three rounds we are able to determine the winner! The participants learn at a rapid pace about how an insurer works and what choices they can make. They discover that they have to make decisions in a complex environment whose outcome is uncertain, but they can influence the degree of uncertainty.

Date: 15 May 2019 13:30
Location: HG00.071

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