Message from Graduate Hong Seok-min
My name is Hong Seok-min who has enrolled the Department of Statistics and Actuarial Science in 1993. I am currently working in the product rate part of the Auto Insurance Planning Team of LIG Insurance Co., Ltd. Specifically, I am in charge of designing, improving, and adjusting insurance premiums for auto insurance products. In other words, I am responsible for determining the composition and price of auto insurance products sold by the company.
Basically, insurance products are made by using statistics because the price and risk are determined according to the probability of an accident and the distribution of the amount of damage when it occurs. In particular, regression analysis and reliability analysis are widely used to determine future insurance premiums and to predict various trends such as loss ratio and discount premiums. Recently, multivariate analysis such as GLM has become a topic of interest for each insurance company in order to calculate an appropriate premium in consideration of the alternating effect of various variables that influence insurance premium decisions.
Various insurance companies are currently attempting to apply these various statistical and mathematical techniques. I hope that you will study statistics and actuarial more actively.
After graduating, I feel that statistics and actuarial are really indispensable studies for my work. Of the six employees who do the same job as me in my company, three employees have been graduated from the Department of Statistics and two employees have been graduated from the Department of Mathematics. Similarly, other insurance companies have a significant number of graduates from statistics and mathematics departments. You can be proud that you are studying statistics or actuarial science.
If you want to be in charge of product rates for an insurance company, it is very helpful to be able to handle computations in addition to statistics and actuarial science. Insurance companies have large amounts of data that cannot be calculated manually. In many cases, it is too much to handle with Excel. In the case of larger insurance companies, the annual number of policyholders for auto insurance is well over 1 million, and the amount of premiums and insurance money exceeds 1 trillion won. You need to develop your computational skills enough to make these massive amounts of data into the form you want to analyze. Once the data is ready, you can produce results using statistical and actuarial methodologies.
Lastly, product development requires unexpectedly diverse experiences. For example, in the case of travel insurance, various experiences are required for product development, just as it is necessary to understand the needs of travelers to organize appropriate insurance. Experience the wonderful things you can only do when you are young. I believe that such experiences will make you a great person.
If you have any detailed information or other inquiries, please contact me at my e-mail (firstname.lastname@example.org) and I will answer you wholeheartedly.