Transcript Underwriting The Rich and Famous

Underwriting The
Rich and Famous
Greg Ferrara and John Brogna
New York Life Underwriting
January, 2012
The Company You Keep®
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Antitrust
New York Life adheres to the letter and spirit of the
antitrust laws. The information in this lecture is
intended to advance the knowledge and improve the
risk assessment skills of the participants. Under no
circumstances shall this lecture be used as a forum
for the pricing of specific products, determining how
they are marketed, or for any other anticompetitive
purpose.
Copyright 2010 New York Life Insurance Company. All rights reserved.
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Agenda
• Types of Rich and Famous
• Pros and Cons
• Studies
• Things to Consider
• Questions
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Types of Rich and Famous
• Athletes
– Pros/High School/College/Retired
• Entertainers/Personalities
– Actors
– Musicians
– Authors
– Models
– Artists
– Dancers
• Humanitarians/Religious Leaders
• “Tops in Their Field”
– Inventors/MDs/JDs/Scientists
• Socialites
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Pros and Cons
• Pros
– Money to afford quality health care
– Personal Trainers
 Excessive or improper exercise can be harmful
– Media attention could be a curb to excesses in general
– Contracts may include “risky behavior” clause
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Cons
– Lifestyle Issues
 Socio-economic
 ETOH/Drug
 Feeling of Invincibility
 Adjustment to fame and fortune
 Retirement
– Travel Risks
– Off Season Activities
– Privatized Medical Care
– Performance Enhancing Drug use
 Stresses and pressures
– Outside/Independent Factors
 Paparazzi
 Terrorist/criminal/stalking target
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1st Mortality Study
• Journal of Science and Medicine in Sport 13 (2010)
410-416
• 2009 studies all male elite athletes – 1920 ~ 1965
• Categorized athletes into 3 distinct groups
– Endurance (aerobic) – long distance runners, cross
country skiers
– Mixed (aerobic & anaerobic) – soccer, ice hockey,
basketball, track & field jumpers, short and middle
distance runners and hurdlers
– Power (mainly anaerobic) – weight lifters, wrestlers,
boxers, track & field sprinters and throwers
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1st Mortality Study continued
• Study Results
– Endurance – findings indicated significant longevity
over the general population (.59)
– Mixed – observed as surviving 4 years longer than the
general population (.68)
– Power – life expectancy is generally worse than the
general population (1.02)
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1st Mortality Study continued
• Study Explanations
– Endurance and Mixed had lower CAD and Smoking
risk than the Power athletes and the general
population
– Improved cardiovascular fitness is associated with a
reduced risk of HTN, DM2 and CAD
– Long term moderate intensity and maintenance type
activities have better longevity than short duration,
major intensity type activities
– Power athletes tend to have higher BMIs, possible
higher usage of anabolic steroids
 Associated with CAD and liver dysfunction
– Italian soccer players were found to have the same
mortality as the national average, with considerably
higher death rate from ALS. Potentially due to the use
of dietary supplements or drugs taken to enhance
performance (1.0)
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2nd Mortality Study
• A Proportional Mortality Study of the Acting
Profession (American Journal of Medicine)
1985;8(1):57-66
• Study conducted due to cancer links to hair dyes and
cosmetics
• Death records from 1950 – 1978 (3,450)
– For Males
 Suicide (1.58)
 Cirrhosis (1.99)
 Cancers – Testes (2.37)
– For Females
 Suicide (2.02)
 Lung Cancer (2.2)
• No cancers found related to hair dyes & cosmetics
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2nd Mortality Study continued
• Study Takeaways
– Stress issues, mental health concerns
– ETOH
– No mention of drugs
– No mention of homicides or MVA deaths
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3rd Mortality Study
• Medical News Today – 7/8/2007 – Eating Disorders
Among Fashion Models Rising
• Study in the UK
– As many as 40% may have some kind of eating
disorder
– Most famous disorder – Anorexia
– Most common disorder – Bulimia
– Models consume water to hide weight loss
• Recommendations
– Have workshops to identify eating disorders
– Backstage environment should be drug and smoke
free
– Cannot participate in a fashion show if BMI is under
18.5
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Miscellaneous Studies
• World Class Athletes sleep on average 8.75 hours
per night vs. average person’s 7.5 hours
• New Zealand rugby players have the same life
expectancy as the general public
– ? Did not maintain high fitness levels after retirement
– ? Nature of the sport may have been a reason
• Danish athletes
– Under age 50 – better mortality
– Age 50 and over – same mortality as the general
population
– Explanation for findings were inconclusive
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27 Club
• Article in Psychology Today published 7/23/2011
– Is there a 27 curse?
 Amy Winehouse
 Kurt Cobain
 Janis Joplin
 Jimi Hendrix
 Jim Morrison
– Admitted drug abuse
– Avocation risks that the general population normally
does not participate in
– At this age, more established as a star
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Risk of Dying & Sporting Activities
• Article by the Bandolier Journal
• Compared the risk of death among sports activities
– BASE Jumping (1 out of 2,317 jumps)
– Swimming (1 out of 56,587)
– Skydiving – US (1 out of 101,083)
– Soccer (1 out of 103,187)
– Running a marathon (1 out of 126,626)
– American Football (1 out of 182,184)
– Ping Pong (1 out of 250,597)!
– Rock Climbing (1 out of 320,000 climbs)
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Things to Consider
• Habits History
– Drugs
– ETOH
• Run ins with the law
• Sense of being Targeted
• Travel – obtain details
– Humanitarian travel
– Country of Origin
– Frequent travel
• Avocations
– Risk seeking behaviors
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Things to Consider - continued
• Mental Health history/comments
• Finances
– Contracts
– Endorsements
– ? Bankruptcies
• Driving Record
• New Projects (Internet)
• Adjusting to Retirement/twilight of career
– Socially and Financially
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Underwriting Tools
• MVRs
• Criminal Records Check
• Internet Review
– Lexus/Nexus, Westlaw
– Google, Zillow
• 3rd Party Financial/Business Information
• Prescription Database
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