Insurers for musicians?

Grumpy_chap

Sandtree said:

Grumpy_chap said:

Sandtree said:

Its really not for mass market consumer general insurance (and the vSME end of business insurance)... the risk premium that makes up the majority of the consideration is very simply based on statistical analysis... our claims exposure (total claims paid out considering frequency and amount) for 40 year olds is twice that of 20 year olds when all else is equal? You charge them double.

I may be reading that incorrectly - you seem to be saying that total paid out for 40 yo is higher than 20 yo, yet young drivers are the ones that get the loaded premium.  The two don't tally.

Not reading it wrong, I just can't multi-task so its the inverse

Grumpy_chap said:
I certainly hope that the actuaries dealing with anything I ever have are looking far beyond 2040...

Unlikely that the actuaries for a car insurer are looking beyond 2040 other than the capital modellers because its short tail risk. Even with capital it'll be light because its short tail risk it is virtually all highly liquid/short duration stuff unlike life & pensions that have real estate and long term funds in the mix.

For annuities the absolutely its beyond 2040, all I have seen work on a 150 year horizon but then this is required for pricing and not just capital.

Thank you on the age thing

Regarding actuarial assessments, my comment was a response to yours so only in the context of "long term insurance like Annuities etc " so I was only commenting my hope that my life expectancy has to be assessed beyond 2040.  It is my reasonable expectation to be here well-past that point.

Sandtree

Grumpy_chap said:

Sandtree said:

Grumpy_chap said:

Sandtree said:

Its really not for mass market consumer general insurance (and the vSME end of business insurance)... the risk premium that makes up the majority of the consideration is very simply based on statistical analysis... our claims exposure (total claims paid out considering frequency and amount) for 40 year olds is twice that of 20 year olds when all else is equal? You charge them double.

I may be reading that incorrectly - you seem to be saying that total paid out for 40 yo is higher than 20 yo, yet young drivers are the ones that get the loaded premium.  The two don't tally.

Not reading it wrong, I just can't multi-task so its the inverse

Grumpy_chap said:
I certainly hope that the actuaries dealing with anything I ever have are looking far beyond 2040...

Unlikely that the actuaries for a car insurer are looking beyond 2040 other than the capital modellers because its short tail risk. Even with capital it'll be light because its short tail risk it is virtually all highly liquid/short duration stuff unlike life & pensions that have real estate and long term funds in the mix.

For annuities the absolutely its beyond 2040, all I have seen work on a 150 year horizon but then this is required for pricing and not just capital.

Thank you on the age thing

Regarding actuarial assessments, my comment was a response to yours so only in the context of "long term insurance like Annuities etc " so I was only commenting my hope that my life expectancy has to be assessed beyond 2040.  It is my reasonable expectation to be here well-past that point.

Yes, they will assume they will be paying a percentage of your annuity/pension until your 150th birthday at which point everyone dies... the 2040 wasn't intended to be a line at which they stop but that just something distal enough that its well beyond GI but close enough that they do actually consider what the improvements will be to a reasonable level... if you look out to 2122 its a fairly arbitrary year on year improvement in longevity rather than a discussion on if there will be a vaccine for cancer or an alien invasion etc that year or not

I have to admit I've only ever seen the outputs, a graph with the anticipated year on year improvements with various different scenarios which at the time, pre-covid, did have things like "end to austerity", medical breakthrough, epidemic, recession  and what they predicted each would do to the speed of change and then their proposed line through them all... lots of detail and difference in next 10-20 years but all go fairly stead state later.

ontheroad1970

Ebe_Scrooge said:

DB1904 said:

Ebe_Scrooge said:

Is your son a full-time musician, or does he do something else as well?  I'm just wondering whether you could "legally" tinker with the job title, as described in this article: https://www.moneysavingexpert.com/insurance/car-insurance-job-picker/

It may be a non-starter, but just wondered whether it may be worth looking into?

As an aside, I'm surprised that a musician is classed as a high-risk insurance prospect.  The potential claim for damaged instruments/equipment would be small compared to the tens of thousands that can come out of personal injury claims (unless he's carrying a Stradivarius around!).  I wonder if it's to do with the perceived lifestyle?  Though even then, a violinist with the Royal Philharmonic would, I image, be a different prospect to an archetypal heavy rocker high on drink and drugs lol (tongue in cheek there - I know it's based on cold hard statistics, not perception.  Although "musician" covers a wide range of activities).  Not that it matters, it just got me curious.

Young driver, driving evenings and late nights. I'm not. 

That's kind of my point.  The term "musician" could equally apply to the aforementioned 55-year-old, church-going, pillar-of-society, principal violinist in the RPO.  The "young" bit, fair enough, that's taken into consideration as a separate risk in it's own right.  "Mainly driving late at night" - a very fair point.

I know insurance risk-profiling is a very complicated and apparently esoteric process.  Sandtree also makes some very good points.  As I say, just curious 

Most of the compare sites differentiate between music styles.  You can select opera singer for example...