CAS Publishes New Monograph on Reserving
A new volume in the CAS monograph series, The Actuary and Enterprise Risk Management: Integrating Reserve Variability by Mark R. Shapland, and Jeffrey A. Courchene, proposes moving beyond reserve variability quantification to allow for full integration of key reserve risk metrics into the larger enterprise risk management framework.
The monograph steps through a case study to illustrate the process of integrating the output from periodic reserve and reserve variability analysis into the enterprise risk management processes. Consequences of this approach include the production of valuable performance indicators and a strengthening of the lines of communication between the actuarial function and the wider organization.
Expanding the regular reserving process to include regular variability analysis and the associated dialogue with management allows actuaries to increase their contributions to enterprise risk management beyond the traditional actuarial scope. This process is not limited to reserving, and can be directly extended into pricing and reinsurance optimization.
Mark R. Shapland,FCAS, FSA, MAAA, has a B.S. degree in integrated studies (actuarial science) from the University of Nebraska–Lincoln. He is a fellow of the Casualty Actuarial Society, a fellow of the Society of Actuaries, and a member of the American Academy of Actuaries. He was the leader of Section 3 of the Reserve Variability Working Party, the chair of the CAS Committee on Reserves, co-chair of the Tail Factor Working Party, and co-chair of the Loss Simulation Model Working Party. He was a member of the CAS Board of Directors from 2016 to 2019, chaired the CAS Audit Committee in 2018–19, and served on numerous other CAS committees. He is also a co-developer and co-presenter of the CAS Reserve Variability Limited Attendance Seminar and the European Actuarial Academy’s Stochastic Modelling Seminar and has spoken frequently on this subject both within the CAS and internationally. He can be contacted at mrshapland@netzero.com.
Jeffrey A. Courchene, FCAS, MAAA, is a principal and consulting actuary in Milliman’s London office, where he is responsible for various reserving, Solvency II, and enterprise risk management projects for a variety of clients. He has a B.S. degree in mathematics from the University of Denver. He is a fellow of the Casualty Actuarial Society, an affiliate member of the Institute and Faculty of Actuaries (IFoA), and a member of the American Academy of Actuaries. He has chaired the CAS International Member Services Committee and the CAS European Regional Committee and served on numerous other CAS committees and IFoA working parties. He served on the CAS Executive Council as vice president, international, from 2013 until 2016 and as CAS liaison to the IFoA General Insurance Board from 2013 until 2017. He is also a co-developer and co-presenter of the European Actuarial Academy’s Stochastic Modelling Seminar and has spoken frequently on this subject both within the CAS and internationally. He can be contacted at jeff.courchene@milliman.com.
CAS monographs are authoritative, peer-reviewed, in-depth works focusing on important topics within property and casualty actuarial practice. The CAS Monograph Series initiative fulfills the goal of creating an important addition to the existing body of CAS literature, with each monograph enabling the comprehensive treatment of a single subject. The Monograph Editorial Board (MEB) manages the monograph publication process in close coordination with the CAS editorial staff. Submission guidelines can be found on the CAS web site or by contacting Donna Royston at droyston@casact.org.
This monograph is currently available to all CAS members as a free download at https://www.casact.org/publications-research/publications/flagship-publications/cas-monographs/monograph-no-12.
