Professionalism Session: Document Retention
The risks of not maintaining accurate records, being able to access them when needed and storing and disposing of them properly are simply too great to ignore. As the actuarial information spreads across organizations, it becomes very important to manage and control business records. Due to some recent high profile court cases, record retention is getting increasing visibility from senior corporate leaders and needs to be given significant attention. The growing number of laws and regulations that specifically reference the management of business records makes it imperative for every actuary to know and understand records retention issues. During this session, the speaker will discuss the importance of a records management program and review professional responsibility as it relates to both client and internal work products. Topics will include identifying business records, handling of paper and electronic records with special emphasis on e-mail records, legal and business retention requirements and record disposition.
Source:
2011 Regional Affiliate - CAMAR
Type:
affiliate
Panelists:
Aquil Ahmed
Keywords:
Professionalism, Document Retention
Calculating Reserve Risk Over a 1-year Time Horizon
Pillar 1 of Solvency II requires an insurance company to calculate the solvency capital requirement (SCR), and the capital required to ensure that the company will be able to meet its obligations over a one-year time horizon with a probability of at least 99.5%. The framework for valuing reserve liabilities required by the SCR (99.5%-percentile of liabilities' value over one year) is very different from the current actuarial framework for valuing reserve liabilities (best estimate of ultimate value over lifetime of liability), and deterministic methods used within the current actuarial framework fall short when calculating the SCR. In this session, we will discuss the two valuation frameworks (current U.S. and Solvency II) and introduce two alternatives to "bridge the gap" when calculating the SCR: one using a modified bootstrap model and another using variability measures based on an analysis of the industry.
Source:
2011 Regional Affiliate - CAMAR
Type:
affiliate
Panelists:
Mark Shapland, Blake Berman
Keywords:
Reserve Risk
Medical Professional Liability Insurance Costs at a Crossroad
Many factors suggest that medical professional liability (MPL) insurance costs are likely to rise in the near future. In addition to general inflationary pressure, these factors include successful challenges to MPL tort reform at the state level, recent trends in MPL insurance costs, and increased utilization resulting from aging baby boomers and healthcare reform. Other aspects of the new healthcare reform law are also likely to impact MPL insurance costs. We plan to discuss the impact of these potential changes on healthcare providers, liability insurers and medical professionals.
Source:
2011 Regional Affiliate - CAGNY
Type:
affiliate
Panelists:
John Gibson, Dorothy Woodrum
Keywords:
Medical Professional Liability, costs
Property Exposure Curves
Exposure rating is one of the key tools used by the reinsurance actuary. Actuaries have been using a variety of exposure curves from Lloyd's scales, reinsurers' curves to ISO products and catastrophe models. We will give an overview of the exposure rating process and explain some of the pros and cons for a variety of curves and approaches. In addition, we will discuss a process for answering the important question, "How do I know if I've selected an appropriate curve?"
Source:
2011 Regional Affiliate - CAGNY
Type:
affiliate
Panelists:
Kevin Hilferty
Keywords:
Property Exposure Curves
A Regulator's Viewpoint on Solvency Modernization
An insurance regulator familiar with NAIC and international regulatory activities will discuss current issues in regulation. The topics to be discussed will be Group Capital Requirements, Supervisory Colleges, Systemic Risk, and Group Corporate Governance.
Source:
2011 Regional Affiliate - CAGNY
Type:
affiliate
Panelists:
Dave DelBiondo
Keywords:
Solvency Modernization
Considerations and Practical Approaches to Measure the Impact of Inflation on Loss Reserves
Recent trends in commodity prices as well as monetary policies set into motion to counter the impact of the credit crisis indicate a period of significant inflation in the US economy in the near future. We will explore the impact of these inflationary pressures on property/casualty reserves. We will start with a broad overview of the impact of inflation by line of business and then get into specific methods and data that are needed to measure the impact. Our goal is to discuss and suggest practical methods based on approaches used within our own company.
Source:
2011 Regional Affiliate - CAGNY
Type:
affiliate
Panelists:
Chandu Patel, Chaim Gottesfeld
What's New with Catastrophe Models?
We will discuss the current state of hurricane models. We will begin by explaining why RMS sought to make changes, and what those changes are. They range from scientific and computing advances to simply more claims data based on recent storm events. Finally, we will discuss some market implications and provide some insight into not only what the rating agencies and DOIs are thinking but also how catastrophe models have been received at recent Florida commission meetings.
Source:
2011 Regional Affiliate - CAGNY
Type:
affiliate
Panelists:
Michael Kistler
Keywords:
Catastrophe Models
Enterprise Risk Management
Insurers often change their approach to risk taking and risk pricing multiple times during the insurance cycle. This session will describe an organized way to look at the propensity of individuals and groups to change their risk attitudes and risk strategies that has been used in another discipline for over 25 years. Actuaries who understand these dynamics can be better prepared to bring the risk analysis to management that they are most likely to want to use at each point in the cycle. In addition, an idealized strategy, Rational Adaptability, will be discussed.
Source:
2011 Regional Affiliate - CAGNY
Type:
affiliate
Panelists:
David Ingram, Alice Underwood
Keywords:
Enterprise Risk Management
Finding Interactions
Source:
2011 Regional Affiliate - MAF
Type:
affiliate
Moderators:
John Lewandowski
A Review of Selected Reforms and Court Rulings in Workers Compensation
Source:
2011 Regional Affiliate - MAF
Type:
affiliate
Moderators:
John Lewandowski
Keywords:
Workers Compensation
Predictive Modeling of Multi-Peril Homeowners Insurance
Source:
2011 Regional Affiliate - MAF
Type:
affiliate
Moderators:
Chris Gross
Keywords:
Predictive Modeling, Multi-Peril Homeowners Insurance
The Munich Chain Ladder Method
Source:
2011 Regional Affiliate - MAF
Type:
affiliate
Moderators:
Dave Clark
Keywords:
Munich Chain Ladder Method
Inflation Risk and the Property/Casualty Industry
The inflationary environment in the U.S. has been relatively benign since the early 1980s. However, many see leading indicators in the economy that raise the specter of increased risk of inflation in the future. This session will discuss the economic background and potential risks. A look back to the inflationary periods of the 1970s and early 1980s will be reviewed, and the implications regarding risk to current property/casualty insurance balance sheets and income statements. Actuarial approaches to deal with inflation risk will be discussed, as well as overall hedges companies can consider if the risk of inflation is a serious threat.
Source:
2011 Seminar on Reinsurance
Type:
concurrent
Moderators:
Yen-Chieh Tseng
Panelists:
Thomas Lee, Daniel North
Florida Property Market: 2011 Update
A panel of Florida property market experts will provide a status update on the 2011 market conditions, including:
Observations on reinsurance price and capacity changes
Escalating sinkhole losses
Impact of model changes on lines purchased and rates
Citizens' update
FHCF: Utilization and changes
Impact of shifting credit quality on the reinsurance market
OIR/Regulatory changes
Source:
2011 Seminar on Reinsurance
Type:
concurrent
Moderators:
Yen-Chieh Tseng
Panelists:
Richard Fidei, Kevin Stokes
Solving the Puzzle: Reconciliation of Exposure and Experience Rating
A simple yet powerful method will be presented that takes the approach that each account is a puzzle to be solved. That is, with perfect modeling and data, the results under the experience and exposure methods will be identical. During this session a practitioner's approach will be taken and the presentation will be a continuation of the "Introduction to Experience and Exposure Rating" case study that introduces the rating methods.
Source:
2011 Seminar on Reinsurance
Type:
concurrent
Moderators:
Gareth Kennedy
Panelists:
Stephen Philbrick, Michael Angelina
National Flood Insurance Plan
The National Flood Insurance Program (NFIP) was enacted by Congress in 1968 to assess, insure, and manage the nation's flood risk. The NFIP insures more than 5.5 million homes and businesses against floods, the most common of U.S. natural disasters. Currently Congress is discussing the future of the NFIP as it has been deeply in debt since the costly hurricanes of 2004 and 2005.
Source:
2011 Seminar on Reinsurance
Type:
concurrent
Moderators:
Gareth Kennedy
Panelists:
Andy Neal
Medical Malpractice and Healthcare Reform Impact
In 2010, the Healthcare Reform Act was signed into law. This session will focus on the trends emerging from the law and the impact it is having on the medical malpractice marketplace. Panelists will discuss potential unintended consequences that may affect other lines of business. The session will cover the inflationary and demographic trends that are emerging towards employed physician status and the like.
Source:
2011 Seminar on Reinsurance
Type:
concurrent
Moderators:
Xiang Ji
Panelists:
John Mize, Howard Friedman
Introduction to Exposure and Experience Rating
This session will start with a simplified case study including a description of the data required to perform standard exposure and experience rating methodologies. The session will also include a game simulation to illustrate what transpires in the real world.
Source:
2011 Seminar on Reinsurance
Type:
concurrent
Moderators:
Xiang Ji
Panelists:
John Buchanan, Maria Morrill
ERM: Rating/Regulatory and Professional Issues
In the U.S., enterprise risk management and economic capital modeling are growing in relevance at rating agencies, regulatory offices, and professional standards boards. This session will give an update on A.M. Best's new questionnaire on risk management and measurement and S&P's new ERM Level III criteria regarding evaluating economic capital models. Also, we will discuss the NAIC proposal on "Own Risk and Solvency Assessment" (ORSA).
Lastly, we will discuss recent work at the Actuarial Standards Board on creating professional standards in the area of ERM.
Source:
2011 Seminar on Reinsurance
Type:
concurrent
Moderators:
Xiang Ji
Panelists:
Kevin Madigan
Accounting for Insurance Contracts - Change is Coming and it will Affect You
The International Accounting Standards Board (IASB), the body responsible for setting International Financial Reporting Standards, is nearing the end of a joint project with Financial Accounting Standards Board (FASB) to develop a new approach to accounting for insurance contracts.
The IASB proposal, which will be finalized in the second half of 2011, would dramatically change financial statements of insurance and reinsurance companies, particularly, P&C. Regardless of the nature of the contract, the proposed standard calls for discounting of probability-weighted cash flows, an explicit risk adjustment, and no day one gains. The current FASB proposal differs to the IASB in the treatment of the margin and recognition of acquisition costs.
The proposed changes are so significant that, if implemented, they would lead to significant operational changes within insurance and reinsurance companies. A panel of experts will discuss the proposed changes in accounting rules, the status of the IASB/FASB joint project, and will share their views on the potential impact of the changes on our industry.
Source:
2011 Seminar on Reinsurance
Type:
concurrent
Moderators:
Xiang Ji
Panelists:
Jerry St. Paer, Gareth Kennedy
Effective Communication for Actuaries
Can technically oriented folks like actuaries be great communicators? Of course!
Increasingly, communications skills are not just a "nice to have" for actuaries-they're a job requirement. If others don't understand your analysis, or how to apply it, that analysis won't be used effectively. Join us in this session to learn how to communicate for greater impact. Using "before and after" examples, we'll illustrate concrete, practical ways to help your message reach your audience.
Source:
2011 Seminar on Reinsurance
Type:
concurrent
Moderators:
Xiang Ji
Panelists:
Jason Rosin
The Pitfalls of Curve Fitting for Large Losses and the Impact on Reinsurance Pricing
This session will look at the advantages and disadvantages of fitting a loss distribution above different thresholds using industry benchmarks versus company data. The panelists present a case study using U.K. motor business where they explore the differences between model uncertainty and parameter uncertainty.
Are individual companies using their own data to fit loss distributions being fooled by randomness? What are the principal elements that an actuary should take into consideration when assembling loss distributions using limited data and how close is the result to reality?
The panelists explore how the fitted curve behaves for various excess layers, examining frequency and severity as well as correlation between them. They will cover how to make best use of benchmark curves and analyze the sensitivity of results in the context of an excess pricing exercise. Finally, they will review how the results can be used to extrapolate to layers where no data is available.
The session will conclude with a discussion of other potential uses for benchmark curves and whether a company should use the industry benchmark curve or a curve fitted to their own loss experience.
Source:
2011 Seminar on Reinsurance
Type:
concurrent
Moderators:
Xiang Ji
Panelists:
Amit Parmar, Michael Cane
Firm Value and the Benefit of Reinsurance
This session will focus on firm value and how it may be improved through the use of reinsurance and other risk management strategies. From a modern financial theory perspective, it can be difficult to justify the value of reinsurance. This talk will present some empirical and theoretical observations that bear on "risk valuation" in general and the value of reinsurance in particular. Also, a framework for measuring firm value will be presented along with implications on economic capital modeling and reinsurance optimization.
Source:
2011 Seminar on Reinsurance
Type:
concurrent
Moderators:
Mary Kannon
Panelists:
John Major, William Panning
Crop Insurance
Farmers purchase insurance to cover their agricultural crops against the reduction in yield or revenue because of specified perils. Expertise is typically required to underwrite and price a crop reinsurance program because of the wide range in agricultural crop exposures. This session will provide an overview of crop insurance, including outlining the impact of recent changes to the government assistance programs, and will discuss how crop fund allocation methods are made and reinsurance programs are developed. Additional topics may include the affect of recent and historical meteorological events, projected
Source:
2011 Seminar on Reinsurance
Type:
concurrent
Moderators:
Mary Kannon
Panelists:
Wade Shuler, Beth Collins
Workers Compensation Catastrophes
Along with the tragic human impact of this year's severe catastrophes around the world, managing catastrophe risk continues to hold many challenges for insurers and reinsurers. This session will focus on the catastrophes caused by terrorism and earthquakes for the workers compensation line of business. Panelists will discuss the catastrophe models as well as applying the modeled results in underwriting, pricing, and surplus allocation.
Source:
2011 Seminar on Reinsurance
Type:
concurrent
Moderators:
Mary Kannon
Panelists:
John Elbl, Maria Paul