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STAY TUNED! If you are anticipating additional search filters by attribute and level to align with the CAS Capability Model, it is coming later this Summer. As the CAS begins to code recorded sessions by specific attributes and levels (starting with the 2023 Annual Meeting), these will be tagged in the CAS database of presentations going forward and should be searchable.
But you may use the Capability Model now to help you identify topics. For example, if you want to move up one level under the content area “Functional Expertise,” you may search topics in the particular functional area to expand your knowledge.
Recorded content is searchable by Capability Model attribute and level in the CAS Online Library.
10K and MD& A Disclosures- What the SEC Wants to See and Why
Over the past several years, the Securities and Exchange Commission (SEC) has sent comment letters to property and casualty insurance companies regarding their loss reserve disclosures in their 10K and MD&A. These letters typically ask for more detail and disclosure surrounding the process the company uses to set reserves, the key assumptions or judgments in the process, and the variability of the unpaid liabilities. While many companies have responded with more detailed disclosures, the transparency and eff ectiveness of disclosures in our industry still varies to a wide degree, and many companies continue to receive these comment letters.
Our panel is comprised of actuaries and other professionals who have significant experience with the SEC as it relates to loss reserve disclosures. The panel will discuss the guidance issued by the SEC that is specific to property and casualty insurance reserves, and their experiences with the SEC in making disclosures more effective and transparent, as well as highlight examples of companies that have exceptional disclosures.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Joshua Fishman
Panelists:
Michael Angelina, Ken Dubbs
Solvency Modernization Initiative: The Times They Are a Changing!
The Solvency Modernization Initiative (SMI) is a review of the U.S. insurance solvency regulation framework to seek areas of improvement. The SMI includes study of other financial supervisory initiatives and solvency proposals in place or under development in other jurisdictions, and their potential use in U.S. insurance regulation. The initiative focuses on five key areas: capital requirements (RBC or risk-based capital), international accounting, insurance valuation (principlesbased reserving), reinsurance, and group solvency. Come learn about the work plan of the SMI, which includes changes to accounting and reporting, creation of a new reinsurance regulatory framework, possible changes to group supervisory methods, and changes to the RBC model.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Joshua Fishman
Panelists:
Ronald Dahlquist, William Sergeant
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 diff erent 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:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Joshua Fishman
Panelists:
Mark Shapland, Mark McCluskey
The Very Very Basic Guide to Reserve Variability and Ranges
Th is session will explain basic concepts associated with reserve variability and reserve ranges. It will start by describing the guidance that the Actuarial Standards of Practice are providing to practicing actuaries regarding the measurement of reserve uncertainty. Current market and regulatory trends that focus on the measurement of reserve uncertainty will also be described. In the second part of the session, basic stochastic terminology will be explained in lay terms. Th e audience should leave the session with a better understanding of the various types of risks measured in stochastic analysis and a basic understanding of the underlying ideas behind the most popular stochastic models and methods.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Panelists:
Emmanuel Bardis, Martha Winslow
Risk Transfer Testing - Accounting Guidance and Case Studies
Accounting standards require that a reinsurance contract must transfer a significant amount of insurance risk. This session will first discuss the accounting guidance available today including several methods that can be used to test for risk transfer. The second part of the session will consist of case studies in which the group will apply risk transfer testing methods to several specific types of reinsurance contracts.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Joshua Fishman
Panelists:
Bonnie Parker
Personal Auto and Past Court Rulings: Florida an Example
Court decisions impact the process around adjusting auto claims in many jurisdictions. How the claim organizations and actuaries evaluate the impacts of these decisions in establishing reserves must be considered.
Florida's court decisions in the last ten years raise many questions in the handling of claims and thus need to be considered when setting reserves. Failure to comply with these rulings may lead to settlements that are in excess of the policy limits due to supposed bad faith actions against the insurance companies.
How are we reserving for the expected amounts in excess of limits and how are we tracking these costs? Companies cannot use these amounts in their pricing or in the excess profits fi lings.
An attorney will discuss the key court decisions and the panel will discuss claims organizations' activities to accommodate the rulings as well as how companies take this into consideration when establishing reserves.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Joshua Fishman
Panelists:
Robert Flayman, John Graziano
Practical Solutions to Reserving Problems
Technical and practical considerations for solving common loss reserving problems will be the focus of this session. Panelists will cover issues including: evaluating the appropriateness of various reserving methods, adapting data to unique situations, and extrapolating beyond available development history. Real-world examples will be used to demonstrate these aspects of reserving.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Joshua Fishman
Panelists:
Susan Forray, Thomas Toce, Scott Kaminski
Medicare Tsunami in Medical Claim Reserves
Section 111 of the Medicare, Medicaid, and SCHIP Extension Act of 2007 (MMSEA), a federal law that became eff ective January 1, 2009, aff ects insurers and self-insurers of all types of claims involving medical expenses. Th is session will explore the impact of this law on workers compensation, auto, and general liability claims.
MMSEA will also affect other lines of business, such as medical malpractice, beginning January 1, 2011. Casualty actuaries must be keenly aware of its impact and specifi c features of the Act, as it aff ects claim development and loss reserve levels. A claims manager will discuss the impact that MMSEA has had since its introduction, and an actuary will discuss actuarial adjustments in response to its enactment. In addition, other risk factors aff ecting workers compensation will be discussed.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Kim Holmes
Panelists:
Greg Sisson
Difficult Situations in Statements of Actuarial Opinion
Under ASOP 36 and the NAIC Annual Statement Instructions, there are five types of Opinions: Reasonable, Deficient, Redundant, Qualified, and No Opinion. In this interactive session, we will discuss a number of situations where the Opinion of the Appointed Actuary may be other than Reasonable, or where there may be a Significant Risk of Material Adverse Deviation, or where there might be other factors that affect the Actuary's Opinion. We also invite participants to bring with them difficult situations that they would like to discuss.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Kim Holmes
Panelists:
Lisa Slotznick
Fitting a GLM to Incomplete Development Triangles
In the context of fitting a GLM to a development triangle, how incomplete can the triangle be for us to still get reasonable results? The paper presents algorithms for giving answers to this question based on an area of mathematics known as graph theory. A companion spreadsheet with Visual Basic implementations of the algorithms discussed is available from the author on request.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
paper
Moderators:
Kim Holmes
Panelists:
Thomas Hartl
Keywords:
GLM
Using Your Professionalism GPS to Navigate the Actuarial World
The importance of actuarial work to the financial stability of a company may lead to varying ethical challenges for the actuary. However, every actuary has a "professionalism" GPS containing the Code of Conduct and Actuarial Standards of Practice specifi cally designed to navigate you through any business situation. Following a brief discussion of the importance of professionalism, panelists will facilitate the review of several hypothetical case studies that pose ethical dilemmas in a variety of situations. Each case study will include a review of relevant Code precepts and ASOPs that will help frame an ethical solution. Audience participation is highly encouraged to produce more thoughtful solutions to the cases. Note that under the current Qualifi cation Standards, three of the 30 CE hours need to be on professionalism topics. This session would provide attendees with 1.8 CE hours related to professionalism.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Kim Holmes
Panelists:
Martin Menard, Chad Wischmeyer
Solvency II - Update and Current Events
The European Union will soon be adopting Solvency II, a new and robust set of regulatory requirements that will shape the management and reporting of the insurance industry in Europe and beyond. Extensive requirements are being developed that will require companies to determine via economic models their capital requirements, to develop more robust procedures and controls surrounding their operations and fi nancial reporting, and to provide more extensive and transparent disclosures to both regulators and the public.
Th is section will include an overview of Solvency II, including a description of the "three pillars" of regulatory requirements, the expected timelines that are currently in place, and the concept of "equivalence" of regulatory regimes in other countries. In addition, this section will describe in more depth the goal and requirements for determining fi nancial statements under a Solvency II bases, including the use of the standard formula versus internal economic capital modeling to determine capital requirements.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Kim Holmes
Panelists:
Thomas Guidon, David Payne
Instructional Approach to Mack and Bootstrap Models
In two back-to-back sessions, we will walk through the mechanics of these two models, discuss the pros and cons of using each, and review case studies using real data. While we will review the theory, the sessions are designed to provide a hands-on focus on using the models. For example, the panel will discuss how you can use diagnostic tools to test model assumptions and make adjustments to obtain a better fi t, such as making heteroscedasticity adjustments, excluding outliers, and the like. How do you bridge the gap between your point estimate and the mean of the distribution? When are the models biased? What other real-life obstacles do you run into when using these methods? Th e goal is to help you develop the confi dence and desire to go back and begin using these models in your enterprise risk management process in addition to your reserve analyses.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Kim Holmes
Panelists:
Paul Brehm
Intermediate Track III - Case Study
Developed as a workshop, this session covers the concepts discussed in the preceding intermediate sessions. Audience members are encouraged to analyze and discuss the cases, and propose techniques to apply for estimating the loss reserves. Various techniques will be discussed and a calculator will be helpful. Laptop computers are not necessary, but participants are invited to bring them. Excel spreadsheets will be available to let participants test multiple scenarios. Th e spreadsheet will be available on the CAS Web Site following the seminar.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Panelists:
Jeremy Pecora, Marc Pearl, Sharon Carroll, James Lynch
On Small Samples and the Use of Robust Estimators in Loss Reserving
The paper tries to explain the rationale of using Average-Excluding-High-and-Low and other robust estimators in loss reserving.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
paper
Moderators:
Kim Holmes
Panelists:
Hou-wen Jeng
Keywords:
Loss Reserving
Commercial Lines - A Potpourri of Reserving Issues
This interesting and informative session is designed to cover a variety of reserving topics for commercial lines of business that are not necessarily part of the actuary's every day "bag of tricks." First, we will focus in on approaches to reserving for "nontraditional exposures" such as construction defect. Next, we will show how to use the Cape Cod and the Backward Recursive methods. Th ese two very useful projection techniques are ones that you may have heard of, but never knew how (or when) to use. Finally, we will discuss ways of reflecting the impact of the insurance cycle in reserving and techniques used to allocate IBNR to subgroups.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Kim Holmes
Panelists:
Kim Piersol, Thomas Ryan
Loss Reserving for Loan Default Insurance
Sound loss reserving is particularly important for loan default insurance, since these insured risks tend to be more correlated than more traditional property-casualty coverages. The tendency for stronger correlation stems from the dependency of the insured's loan performance to macroeconomic factors. The three insurance lines will be mortgage guaranty, financial guaranty and auto loan default. The speakers will provide background on the coverages and risks and expand into considerations and approaches for loss reserving.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Kim Holmes
Panelists:
Kyle Mrotek, Brian Mullen, Jason Berkey
Reserving for Extended Reporting Endorsement Coverage, Including the Death, Disability and Retirement Policy Provision
Differing points of view regarding the source of the liability for the death, disability and retirement (DDR) reserve held by writers of physicians professional liability coverage will be presented. A streamlined methodology for development of an indicated DDR reserve will be compared to the lengthier methodology currently in use. In addition, methodologies for development of indicated unpaid loss associated with issued extended reporting endorsements (i.e., "tail policies") will be discussed.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
paper
Panelists:
Susan Forray
Keywords:
Reserving for Extended Reporting Endorsement Coverage
Estimation of Adjusting and Other Expense Reserves Utilizing Historical Report and Payment (Including Partial Payment) Patterns
The estimation of adjusting and other expenses ("AOE") reserves can be constrained by the availability of historical claim AOE payment data along with the lack of uniformity of data and lack of consensus of what AOE represents. Adjusting and other expenses ("AOE") are incurred when claims are first reported and opened, throughout the life of the claims when partial payments and revisions are made, and finally when claims are closed and final payments are issued by the insurer. Our paper will attempt to describe a variation of the count-based methodology whereby we utilized the limited data presented to us by an insurer to estimate AOE reserves.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
paper
Panelists:
Marc Pear, Peter Tomopoulos
Keywords:
Estimation of Adjusting and Other Expense Reserves (AOE)
A Historical Perspective on the Underwriting Cycle and a Reinsurer Perspective on Cycle Management
The supply and cost of reinsurance has historically had an influence on the Property-Casualty underwriting cycle. When reinsurance is inexpensive, primary companies may rely on reinsurance to support top line growth and price reductions that lead to competitive pricing. When the supply of reinsurance contracts or the cost of reinsurance increases, cedants may need to increase base rates to address the additional cost of coverage or the additional risk that they retain. This session will discuss the historical role of reinsurance in the underwriting cycle while touching on the challenges a reinsurer faces when managing the underwriting cycle.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Kim Holmes
Panelists:
David Clark, Raju Bohra
Title Insurance Reserving Issues - Historical Results and Emerging Trends
Title insurance operating results are sensitive to economic conditions, particularly when the real estate market has been stressed for several years, and agent defalcations occur on a frequent basis. Carriers issuing Title insurance policies must contend with risks that are correlated with the general economy, an imploding subprime mortgage marketplace, illiquidity in the lending community and rising delinquency rates on mortgages.
The speakers will summarize the coverage provisions associated with Title insurance, identify unique reserving issues that do not exist with traditional P&C product lines as well as present a review of the historical operating results of the Title insurance industry over the past several years.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Kim Holmes
Panelists:
Joel Vaag
Risk of Material Adverse Deviation a Regulator and Auditor Viewpoint
In this era of transparency and increased disclosure, materiality is a hot topic in financial markets in general and especially in the insurance industry. Casualty actuaries are becoming more and more interested in materiality standards. Materiality issues are on the forefront of many regulators' minds, in particular as they relate to disclosures for the risk of material adverse deviation (RMAD) in statements of actuarial opinion (SAOs).
During this session we will answer the questions, how do regulators view the RMAD paragraph? Materiality is also important as part of the financial audit of the insurance company. How does the auditor use the RMAD paragraph in the financial audit? How do auditors determine materiality? If the range of central actuarial estimates of loss reserves is larger than the materiality of the audit, does this cause a concern for the auditor? The panel comprised of a regulator and an auditor will discuss their viewpoints of materiality standards and the RMAD paragraph.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Kim Holmes
Panelists:
Melissa Greiner, Edward Nosenzo
Reserving for Individual Reinsurance Contracts
While most reinsurance contracts fall into one of a few standard categories, it is not unusual for reinsurance contracts to have unique or unusual provisions tailored to the specific needs and risk appetite of the particular company. In a number of instances, it is necessary to establish reserves, whether for assumed or ceded reinsurance, specifically for an individual contract. In this session, we will explore some of the issues and potential solutions in establishing reserves for individual reinsurance contracts. Participants are invited to bring questions with them for which the panel and the audience will attempt to offer suggestions.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Kim Holmes
Panelists:
John Aquino, Paul Vendetti, Evan Bennett
Basic Track III - You Set The Reserve!
During this last session within the Basic Track, participants will receive three sets of data and will be asked to develop reserve estimates using the basic methods presented. A calculator will be helpful. Laptop computers are not necessary, but if participants have them, Excel spreadsheets will be available to let participants test multiple scenarios. The spreadsheet will also be available online following the seminar.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
The Economic Measurement of Medical Errors and Illinois Tort Reform on the Cost of Medical Liability Claims
This two part session will start with a presentation on the Economic Measurement of Medical Errors. The purpose of this analysis was to measure the annual frequency of medical errors in the United States and the total measurable cost to the United States economy of these errors. This analysis is based upon an analysis of an extensive claim database, and it therefore relies upon those medical events which have been submitted for payment by the medical providers. Measureable costs of medical errors include increased medical costs, costs related to increased mortality rate, and costs related to lost productivity after the occurrence of an error. An error is defined as a preventable adverse outcome of medical care that is a result of improper medical management (a mistake of commission) rather than a progression of an illness due to lack of care (a mistake of omission).
The last part of this session will focus on Medical Liability Claims. In early 2010, the Illinois Supreme Court struck down a state law capping noneconomic (i.e.pain and suffering) damage awards in medical professional liability cases. Analysis of the potential financial implications with respect to claims severity was performed by developing a model using publicly available loss data from two states that required the filing of detailed medical professional liability damage award amounts. The claims severity impacts were estimated by applying the model to rate filings data of the ISME Mutual Insurance Company, the largest writer of physicians' professional liability coverages in Illinois.
Source:
2010 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Moderators:
Kim Holmes
Panelists:
Susan Forray, Travis Gray, Jill VanDenBos
