Managing General Underwriters
Managing General Underwriters (MGU’s) are in the business of managing the assumption of risk to make a profit.
An MGU may work inside an insurance organization or be independent. However, an MGU will generally spread the risk they manage across several organizations who have the financial capacity to assume risk. Some MGU’s employ actuaries, perhaps as their CEO. However, all MGU’s use actuarial principles and techniques.
I have worked with MGU’s in the small-group medical business, the large employer stop-loss business, the group long-term disability business, the individual disability business, and several other areas. Each time the MGU has been on the cutting edge of the market and the engagements have been fun and challenging.
One actuary for a large re-insurer introduced me to the most important concept for managing insurance risk:
“Make money = GOOD. Lose money = BAD.”
I find this to be one of the most important concepts to remember everyday.