Wednesday, February 04, 2009
What happens when the underwriters take control of the company?
You get correlation-based analysis run amok.
Sounds crazy. But there is a lot of consumer credit risk underwriting that is equally irrational - but based on the theory that across a large enough sample, the difference between correlation and causality is irrelevant.
Splash, out
Jason
A row has broken out in Austria after a company tried to recruit workers born under certain star signs.
The Salzburg insurance company posted an advert in major newspapers seeking employees for sales and management that were born under certain constellations, claiming statistics indicated that they were the best workers.
'We are looking for people over 20 for part-time jobs in sales and management with the following star signs: Capricorn, Taurus, Aquarius, Aries and Leo,' read the ad that appeared over the weekend.
Sounds crazy. But there is a lot of consumer credit risk underwriting that is equally irrational - but based on the theory that across a large enough sample, the difference between correlation and causality is irrelevant.
Splash, out
Jason
Labels: business, insurance, stupid
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