Feb 9, 2022
Jerry Theodorou is the Director
of the Finance, Insurance & Trade Policy Program. Jerry develops
and advances effective free-market public policy solutions to
complex issues where federal and state governments have intervened.
In this episode, he weighs in on what social inflation is, climate
change insurance, and questions the ethical role insurance plays in
the nuanced complexities of our society.
- A little bit about Jerry and his extensive
- What is social inflation and its
- What is human life worth? What are pain and
suffering worth? How do you really put a price on these
- Companies that overpay for something in fear of
the consequences hurt everyone, including the surrounding
- What should you know about litigation
- Jerry weighs his thoughts on how climate change
is impacting the insurance industry.
- People are questioning whether the country
Kuwait will be inhabitable in a few years.
- Risk management is what this industry is all
about, and with big data readily available, it becomes easier to
calculate that risk and charge a fair price for it.
- There’s an argument being made currently that
credit-based insurance scores are discriminatory. The facts are if
you discriminate against others, you are less
- Jerry shares his thoughts on how the industry
will adapt to our changing world in the next five
- The insurance industry has been the one funding
and supporting our infrastructure. Jerry explains what roles the
bonds market plays in all of this.
- What does Jerry wish he’d learned about sooner
in his career?
Keep Getting Better
Jerry on LinkedIn
“People are talking a lot about
inflation these days with 6% over-year inflation, but that’s
economic inflation, which is driven by supply and demand. Social
inflation is rising loss cost for reasons not driven by economic
“Institutional investors are
looking for diversifying asset classes that are uncorrelated to
credit and debt markets, and [litigation funding] is quite
lucrative, but there are some ethical problems.”
“Something is happening. There
are still climate change deniers, but the facts are air
temperatures are rising and sea levels are rising.”