Read Full Magazine Here. In this exclusive interview, BUSINESS LIFE delves into the remarkable career journey of Dr. Jordan AlZuBi, a distinguished Insurance Economist with a PhD in Risk Management and Insurance.
With an impressive trajectory that spans across continents, Dr. AlZuBi has left an indelible mark on the field. From serving as an economist at the NAIC to being a visiting scholar at Emory University and later becoming a professor in Taiwan, Dr. AlZuBi has not only contributed significantly to academia and the insurance industry but has also experienced diverse cultures and perspectives. Join us to explore the insights, accomplishments, and invaluable experiences that have shaped Dr. AlZubi’s inspiring career.
BL: Hometown and Academic Path: Coming from Jordan, a country rich in history and culture, could you share how your experiences growing up there have influenced your academic pursuits and contributed to your journey in risk management and insurance?
Dr. Jordan AlZuBi: Hailing from a large and highly educated family, with nine brothers and three sisters, my upbringing was infused with the pursuit of knowledge. Five of my older siblings paved the way, pursuing various disciplines from medicine to engineering at prestigious universities. Amid this backdrop, the significance of a diversified educational portfolio became clear to both my mother and me.
As I deliberated on my academic path, a pivotal moment arose when my eldest brother provided counsel. The concept of Risk Management and Insurance (RMI) surfaced, a burgeoning field in the MENA region, with the landscape evolving to encompass insurance for a myriad of aspects. His words resonated, leading me to embark on a journey into RMI.
What transpired was a transformative decision. Over the course of my studies in Risk Management and Insurance, a nascent field in my region, my passion grew deeper. A decade of dedication culminated in a remarkable milestone – I became the first Jordanian and the second Arab to hold a PhD in Risk Management and Insurance from prestigious universities in the US, and Australia (Emory University, The University of Queensland, and Florida State University). This achievement not only fulfilled a personal ambition but also marked a significant step in the advancement of my field within the Arab world.
BL: Securing a Spot in a Prestigious PhD Program: Admission to prestigious RMI PhD programs is highly competitive. Could you walk us through the steps you took to stand out among applicants and secure a place in such a respected program? What qualities or achievements do you believe played a crucial role in catching the attention of the admissions committee?
Dr. Jordan AlZuBi: Before I left Jordan to study in the US, I was well aware that gaining admission to a PhD program in risk management and insurance was incredibly tough. To give you an idea, there were only five universities across the entire US offering such a program. What’s even more striking is that each university admitted just one PhD candidate each year, amidst a flood of hundreds of applicants.
Getting in required a high GMAT score and a strong TOEFL result, both of which are exams measuring language and academic proficiency. It wasn’t just about test scores, though. A significant amount of network capital was needed, which meant knowing influential people in the field, and three recommendation letters were crucial. At that time, my English skills, network capital, and ability to communicate were quite limited.
So, I created a plan that spanned two years. I started by improving my English through ESL (English as a Second Language) courses. I also began volunteering, working closely with respected professors and insurance economists in the USA, mainly in California. The goal was to earn their trust and garner strong recommendation letters.
About a year into my journey in the US, I successfully cleared both the TOEFL and GMAT exams, scoring notably high on both. My GMAT score was truly exceptional, ranking in the top 1 percentile with a score of 770 out of 800. And then, a few months later, came the wonderful news – I secured admission to the doctoral program in RMI. This accomplishment was made possible through the immense support of three highly regarded economists in our field. What’s more, I was able to secure a full scholarship that covered my tuition fees, provided a stipend, and even offered allowances for attending conferences, all spanning five years.
Reflecting on why I stood out among the applicants, I attribute it to several qualities. Firstly, my strong academic track record, especially my exceptional GMAT score. Secondly, the powerful recommendation letters from reputable figures. Thirdly, I am naturally approachable and sociable, which might have played a role. Lastly, the marked improvement in my network capital and communication skills also likely caught the admissions committee’s attention.
BL: Pioneering the Path for Jordanians and Arabs and Shaping the Program’s Diversity: Your presence as the first Jordanian and second Arab to pursue a PhD in this field at a prestigious level is undoubtedly groundbreaking. In what ways do you believe your background and perspectives have contributed to the enrichment of the program? How has your unique viewpoint influenced discussions and research within your academic community?
Dr. Jordan AlZuBi: Throughout my time as a PhD candidate, I played a pivotal role in enhancing Diversity, Equity, and Inclusion (DEI) in the US Insurance Market within the institutions I was associated with. My unwavering commitment to diversity and inclusiveness stems from both personal and professional convictions as an insurance economist. This dedication is fueled by my experiences as a PhD candidate hailing from an underrepresented group in the Middle East, which I underwent across three esteemed academic institutions: The University of Queensland, Emory University, and Florida State University. The representation of Arab insurance economists holding PhD degrees is notably minimal in the global insurance landscape, and my position as one of only four such experts from the MENA region is a source of great honor. As the second from the region and the first Jordanian, I cherish this distinction.
My interactions with diverse populations encompassing various backgrounds, such as socio-economic, first-generation economists, international economists, and those with learning disabilities, have afforded me a unique perspective. This diversity enriches my contribution to the insurance industry, particularly due to my cultural background originating from an underserved area. My ability to bridge gaps, advocate for diversity, and foster inclusivity has been informed by my varied experiences. My unique viewpoint influenced discussions and research within my fellow insurance economists.
I have begun developing high-quality research that is aimed for publication in top journals. I developed research in the areas of race/discrimination in insurance markets, Islamic insurance and finance. For instance, during my tenure as a PhD candidate, I consider how culture and religion influence asymmetric information in Islamic insurance markets. I find evidence that religious individuals are less likely to file claims and are more likely to file for claims at smaller amounts than non-religious individuals. The results show that asymmetric information and excessive claiming behavior are significantly lower during the Muslim holidays and Mondays (after the weekend), suggesting that the Monday effect is present and that the reduction in asymmetric information is pronounced among Muslims even on Muslim religious holidays and Mondays.
BL: From a PhD in Risk Management and Insurance to a Career in Insurance Economist: Can you take us through the journey of how you transitioned from completing your PhD to establishing yourself as an insurance economist?
Dr. Jordan AlZuBi: My journey through the doctoral programs at Emory University, the University of Queensland, and Florida State University has significantly equipped me to not only think like an economist but also perform as one. These programs have provided me with rigorous training in conducting top-tier academic research in the fields of finance, insurance, and risk management.
Moreover, my professional growth has been enriched by active participation in 35 conferences both domestically and internationally over the past five years. These engagements spanned across the United States, Asia, and Australia, collectively contributing to my evolution into a proficient insurance economist.
A pivotal factor in shaping my trajectory as an insurance economist has been my extensive involvement in the professional insurance community. I have maintained an active membership in several prominent risk management and insurance organizations such as the American Risk and Insurance Association (ARIA), Western Risk and Insurance Association (WRIA), and Southern Risk and Insurance Association (SRIA), among others.
Furthermore, my affiliation with Emory University has presented invaluable opportunities for my career growth as an insurance economist. I had the privilege of collaborating closely with esteemed economists such as Dr. David Howard from Harvard University. Together, we delved into the influence of social networks on policyholders’ healthcare provider choices. Additionally, we investigated the prescribing behavior of physicians, examining factors such as insurance coverage, drug types (branded versus generic), and costs incurred by patients and insurance companies. Another facet of our research explored the impact of workplace peers on financial planning and decisions, revealing that peer interactions significantly alleviate the costs associated with obtaining and processing financial information.
In essence, the convergence of rigorous academic training, participation in conferences, active engagement with professional organizations, and collaborative research initiatives has cohesively shaped my journey into a seasoned insurance economist.
BL: Driving Forces at the NAIC: As an economist at the National Association of Insurance Commissioners (NAIC), you’ve had a significant impact on insurance regulation. Could you share some of the pivotal projects you’ve been involved in and discuss how your expertise has contributed to shaping effective insurance policies?
Dr. Jordan AlZuBi: I’m currently an insurance economist at the National Association of Insurance Commissioners (NAIC). My primary duties involve creating model laws and working on projects that address issues related to race, diversity, equity, inclusion (DEI), and discrimination in insurance markets. I examine the factors that contribute to disparities in access to insurance and the differential treatment of policyholders based on race and other factors. My research work also focuses on identifying best practices for promoting DEI in the insurance industry, including strategies for reducing implicit biases and improving access to insurance products for underrepresented groups. For instance, I examine whether narrow medical networks are systemically pronounced among areas with high ratios of disadvantaged people of color and other racial/ethnic minorities. I further examine the potential for telehealth to ameliorate or exacerbate health disparities among minorities, and disadvantaged people of color to access healthcare insurance/services. The accelerated development and substantial increase in utilization of telehealth resources during the COVID-19 pandemic has sparked considerable interest in telehealth, and along with that interest, questions about the implications of increased telehealth availability for existing socioeconomic and demographic health disparities.
BL: Global Insights Through Academia: Your role as a visiting scholar at Emory University provided you with an opportunity to engage deeply with academia. How has this experience enriched your understanding of risk management and insurance? Have any specific collaborations or research findings stood out during your time at Emory?
Dr. Jordan AlZuBi: Being affiliated with Emory University allowed me the opportunity to establish additional collaborative research with Dr. David Howard. For instance, we document the extent of moral hazard of physicians’ prescription behavior. In which, we examine whether the costs incurred by patients (e.g., coinsurance, copayments, and deductibles) and drug prices influence physicians’ prescription choices. We argue that physicians act as “double agents” in the healthcare insurance markets in which the ultimate goal is to achieve efficiency by acting in the best interests to both players “insurers and policyholders”. However, due to the information asymmetry, and various financing mechanisms available in healthcare insurance markets, there are no enough incentives available for healthcare providers to fully fulfill their jobs as double agent. I argue that the “fee-for service” system may induce healthcare providers to be more biased in fulfilling the interest of policyholders. However, the “HMO system” is likely to produce the opposite effect in which healthcare providers more biased in fulfilling the interest of insurance companies.
BL: Cultural Adaptation Across Continents: You’ve lived and worked on multiple continents, including North America, Oceania, Middle East and Asia. How has your exposure to different cultures influenced your approach to insurance economics and risk management? Have you found any universal principles that apply across diverse markets?
Dr. Jordan AlZuBi: I have developed a diverse cultural background by living and working closely with large group of economists, scholars, and students from various continents. It has influenced my perspective of insurance regulations, and how individuals behave in insurance market. I have examined the effect of individuals’ cultural background, religion, and religiosity on economic behavior. Within the insurance industry, which is the focus of my work as an insurance economist, I have examined how religion, as a proxy for national culture, influences insurance demand across various countries, including some Muslim countries. Insurance economists state that while policyholders are assumed to make rational decisions, they may respond to insurance demand according to their cultural perceptions and religious beliefs. One more explanation, as noted in Park and Lemaire (2012), is that “… some religious people, including Muslims, believe that reliance on insurance to protect one’s life or property results from distrust in God’s protective care”.
I also examine individual’s tolerance to ambiguous situations (e.g., risky decisions) given their cultural background, and religion. For instance, risk-averse individuals tend to have a high Uncertainty avoidance (UAI), which compels them to avoid uncertain events and unnecessary risks. Further, my fellow insurance economists reveal that risk aversion is positively associated with religiosity which suggests that individuals with a high UAI are religious and risk averse. Further, I report that risk averse people are less likely to misuse their insurance, defraud insurance companies, withhold information, and misrepresent themselves. All these negative behaviors are major contributors to serious issues in insurance markets (e.g., adverse selection and asymmetric information).
Finally, as a professor of risk management and insurance, teaching and being in contact with students from various backgrounds (e.g., socio-economic, first-generation students, international students, students with learning disabilities) allows me to develop cultural and ethnic sensitivity where I place the interest of the students and my department above all.
BL: Memorable Milestones: Over the course of your career, you’ve undoubtedly achieved numerous milestones. Could you share a particularly memorable accomplishment or project that you are especially proud of? How did this experience contribute to your growth as an insurance economist?
Dr. Jordan AlZuBi: I take great pride in the numerous milestones I have attained within the trajectory of my professional career. These noteworthy accomplishments encompass my attainment of an outstanding GMAT score of 770 out of 800, as well as the acquisition of scholarships from prestigious institutions, such as the Emory University Scholarship and the University of Queensland Research Scholarship.
However, among these commendable feats, two particular achievements hold a place of exceptional significance. The foremost is my distinction as the first Jordanian and second Arab insurance economist to have successfully conferred a PhD degree in risk management and insurance. This accomplishment stands as a testament to breaking new ground in this realm. Equally deserving of pride is the recognition garnered through the conferment of the “Mark Dorfman Best PhD Paper Award” in January 2020. This esteemed accolade was bestowed upon me in acknowledgment of my diligent endeavors in the sphere of insurance economics, and Islamic insurance, further underlining the extent of my dedication and accomplishments in this specialized domain.
BL: Evolution of the Insurance Landscape: The insurance industry has undergone significant transformations in recent years, from technological advancements to changing consumer behaviors. How do you envision the future of insurance economics and risk management? What skills do you believe will be most valuable for professionals entering this dynamic field?
Dr. Jordan AlZuBi: The future of insurance economics and risk management hinges on several pivotal areas, prominently including Data Analytics and Artificial Intelligence (AI), Cybersecurity and Privacy, and Climate Risk Management. These domains will significantly shape the trajectory of the industry, and insurance professionals entering this dynamic field must be well-versed in these critical aspects. For instance, AI-driven fraud detection, personalized pricing, and equitable practices will reshape the industry. Further, Insurance Technology (InsurTech) has become a global phenomenon and The United States is the biggest destination for InsurTech due to its large base of sophisticated consumers and vast pool of venture capital.
Furthermore, as cyber threats grow, insurance companies need professionals who can develop robust response plans. This involves coordinating with cybersecurity experts, legal teams, and communication specialists to minimize damage and protect customer data in case of a breach. The insurance industry has been taking cyber risks and InsurTech very seriously, especially during the COVID-19 pandemic. The World Economic Forum ranks cyberattacks as the second most concerning risk for doing business globally over the coming decade. The COVID-19 pandemic has increased that threat of cyberattacks by accelerating the spread of digital technologies
Finally, the insurance economists have been taking climate change/ environmental risks very seriously. The finance industry faces potentially significant impacts from the escalating effects of climate due to its exposure to weather-related property risks, investment volatility, and other issues. Further, companies’ carbon-intensive investments are threatened by challenges inherent in the transition to a low-carbon economy. Thus, Climate Risk Management, demanding expertise in creating risk assessment models for climate impacts and driving sustainability initiatives to address environmental challenges. Professionals entering this dynamic field must possess proficiency in these areas to navigate the evolving landscape and drive innovation.
