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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.
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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.
Applying ERM and Capital Modeling Principles to the CAS
The application of Enterprise Risk Management (ERM) principles have increasingly been adopted by business organizations in the US and globally. For insurance companies, ERM principles are often coupled with economic capital models that more closely integrate risk and capital management. Simultaneously, the role of the actuary has expanded so that today many actuaries are seeking designations to provide service related to both ERM and economic capital modeling.
Over the last few years, the CAS has adopted these principles to itself as an organization as well. Much of this work has been conducted by the CAS Risk Management Committee (RMC). Examples of the principles adopted include risk identification, risk mitigation, and investment and capital modeling.
This session will present the work of the RMC, and illustrate both the application of ERM principles, and the role of actuaries practicing in ERM and capital modeling. Concepts presented will include the approach to identifying key risks facing the CAS and the actuarial profession, the development and adoption of risk mitigation strategies, as well as modeling to evaluate the CAS surplus position and investment strategy.
Source:
2010 Spring Meeting
Type:
concurrent
Moderators:
Ellen Cooper
Panelists:
Ann Conway
A Practical View of China's P&C Insurance Market
With an annual premium income of USD 42 Billion in 2009, China P/C insurance market is one of the dynamic insurance markets in the world. Though its root can go back to the early twentieth century, the fast development is only a story of the last decade. Like today's business world in China, the China P/C insurance market has been developing fast and presents its uniqueness.
The presenters of the session, fellows of CAS, have worked and lived in China, and have first hand experience as actuaries in China. In addition to general topics such as trend and growth potential, they will also cover specific issues such as business conduct, accounting evolution, regulatory changes, P/C actuaries' working status. Comparison between the North America and China P/C insurance markets will be discussed as well.
Source:
2010 Spring Meeting
Type:
concurrent
Moderators:
Ellen Cooper
Panelists:
Xinxin Xu, Cathy Hwang
The CAS and You: A Resource for New Leaders
Do you think a CAS leadership position may be in your future? Are you a Chair or Vice-Chair of a CAS Committee or Task Force? This session is for you. Veteran CAS leaders will explain the vital role that Chairs play in accomplishing the CAS's operational and strategic objectives. You will learn where your role fits in the CAS governance structure and what is required of you. You will also learn about the key resources that are available to help Chairs succeed and the secrets of getting things accomplished within the CAS.
Source:
2010 Spring Meeting
Type:
concurrent
Panelists:
John Kollar, Patricia Teufel, Joanne Spalla
Economic Capital Models
Rating agencies and regulators have increased their focus on Economic Capital Models of late, and this issue has also been generating a lot of discussion in insurance circles. While some may believe the value derived from Economic Capital Models is minimal, it is too late to ignore them now, as regulators and rating agencies are requiring them. The concern now is making sure these models are developed intelligently.
This session discussion will cover:
1. A high level discussion on Economic Capital Models:
* What is an Economic Capital model? How does it fit into ERM?
* A discussion of the rating agency models (Best and S&P) and the regulatory models (NAIC RBC, Bermuda, Solvency II)
* The view of the investment community (Do investors care if a company has an internally developed Economic Capital model? Do they care about BCAR or RBC measures? Do they even know what these mean?)
2. What do actuaries who work on Economic Capital models need to think about?
3. How can Economic Capital Models be used to manage a firm?
Source:
2010 Spring Meeting
Type:
concurrent
Moderators:
Anson Glacy
Panelists:
Eugene Connell, Stefan Holzberger, Alan Seeley, Mark Verheyen
Balancing Rate Competitiveness and Rate Stability with Rating Tiers – A Case Study for Personal Auto Insurance
Since 1990s, the race in developing more complex insurance rating plans has helped insurance companies compete in the market place and avoiding adverse selection. However, it has also caused some challenges for the companies, especially on rate stability and regulatory compliance [1-3]. Some insurers have found that as they change or revise their rating plans, multiple rating products will be in production. Maintaining and managing different versions of rating plan in production is a difficult challenge that insurers contemplate. To avoid price disruption for renewal business, a new class plan typically is only implemented for new business.
One efficient approach, which has become popular in the industry lately, in managing the rate stability issue is to use rating tiers on top of a class plan. For example, as one or several new variables are considered for addition to a rating plan, they can be used for the rating tier without impacting the existing class plan. By doing so, we can keep the major portion of the class plan unchanged and limit the impact in the final rating through rating tiers. As a result, tier rating plans can be applied to both new business and renew business.
During this session, we present a case study demonstrating the advantages associated with rating tiers in balancing rate competitiveness and rate stability:
* The case study will be based on actual personal auto industry data in Michigan.
* We will explain, step by step, the process of developing the rating tiers using the industry data.
* We will cover rating tier structure design and results. We will show how to set up the GLM pure premium and loss ratio models and the associated pseudo code programs to develop the rating tiers.
* Finally, we will show how to manage and control price disruption through tier assignment or tier factor capping.
Source:
2010 Spring Meeting
Type:
concurrent
Moderators:
Anson Glacy
Panelists:
Jun Yan, John White, Bradley Lipic
A Perfect Storm For P&C Analytics
Significant advances in seemingly disparate areas such as infrastructure technologies, data availability, algorithms, and analytical tools, have created a perfect storm for innovative applications of analytics in P&C insurance. Indeed, these advances have turned conventional analytical approaches on their heads. No longer is one limited to using just internal data – a plethora of external, useful data sources are increasingly available for use. Technology innovations now allow us to store and efficiently process much larger datasets than ever before imagined, and perhaps most importantly, tools are emerging that can leverage cutting-edge technologies (e.g., cloud computing) and innovative algorithms (e.g., text mining, network analysis, etc.), to enable types of analyses never before practical, or even possible. This session will explore specific opportunities afforded by the alignment of these advances while at the same time exploring the limitations of models.
Source:
2010 Spring Meeting
Type:
concurrent
Moderators:
Michel Rochette
Panelists:
Louise Francis, Karthik Balakrishnan
NAIC Credit Hearings
Although credit has been in use by many companies as a rating, tiering or underwriting factor, it continues to come under intense scrutiny. This scrutiny has been strengthened by the current economic situation and a belief by many that the hardships caused by the mortgage crisis and downturn in the economy have lead to the considerable worsening of scores, and consequently increased insurance rates for many companies. The NAIC has been holding a series of hearings and discussions over the past year, and continues to review and debate the subject.
This session will discuss what has been occurring with the NAIC, and where the organization currently stands. In addition, we will present some of the issues/arguments made by the AAA in their presentation at the hearings last April, and other industry viewpoints.
Source:
2010 Spring Meeting
Type:
general
Moderators:
Michel Rochette
Panelists:
Eric Nordman, Geoffrey Werner, Richard Babel
Commutations - What's in it for the Cedent?
Insurance companies enter into commutations with their reinsurers for many reasons - both at their own requests and the requests of the reinsurers. Some of the reasons insurers may commute include that:
* the reinsurer is impaired or in runoff,
* the reinsurer disputes coverage or is otherwise obstructive in paying, accelerating the receipt of a profit commission,
* the recognition of GAAP income on retroactive contracts has been accelerated,
* or the reinsurance contract included a mandatory commutation date.
The reinsurer may commute to eliminate long-tail liabilities - elimination of which can generate underwriting income or reduce RBC required by rating agencies; reduce claims maintenance on long-tail contracts; or, at the request of the insurer, maintain a good relationship with the cedent.
Just as the original reinsurance contract included a risk load for the reinsurer, insurers need a risk load to cover the risk of the reacquired liabilities. This session will give examples of commutation scenarios to illustrate these points and look at the magnitude of risk load to reacquire the liabilities.
Source:
2010 Seminar on Reinsurance
Type:
concurrent
Moderators:
Michel Rochette
Panelists:
Brian Mahon, Jim Kahn
Catastrophe Modeling Update
This session will offer an update on catastrophe modeling and will include discussions on the following:
* Changes in zonal definitions (post-Ike)
* Market impact of California earthquake model changes
* Industry loss development
* Data quality initiatives
Source:
2010 Seminar on Reinsurance
Type:
concurrent
Moderators:
Michel Rochette
Panelists:
George Davis, Krista Lienau, Jed Rhoads
The Uncertain Future of Workers Compensation Insurance
The future of workers compensation insurance is clearly uncertain and there are questions as to whether medical severity trends will continue to stay above inflation. Examining this topic we must ask what impact the healthcare reform as well as reduced payrolls and increased risk of unemployment will have on workers compensation (re)insurance.
Session presenters will further engage the audience by answering how new catastrophe models affect reinsurance purchasing and rating agency attitudes and whether workers compensation results are correlated with other casualty lines.
Source:
2010 Seminar on Reinsurance
Type:
concurrent
Moderators:
Michel Rochette
Panelists:
Brian MacMahon, George Phillips
The Future of Catastrophe Modeling Data
What might catastrophe modeling data look like in the coming years? This session will address the impact of data quality on modeling accuracy and market pricing, including discussion of the current state of catastrophe modeling data and the potential implications of the coming paradigm shift in data ownership. Attendees will gain a heightened awareness of the issues surrounding catastrophe modeling data quality and their implications.
Source:
2010 Seminar on Reinsurance
Type:
concurrent
Moderators:
Michel Rochette
Panelists:
Stephen Russell, George Davis, Roger Arnemann
Impact of Trend and Inflation on (Re)insurance
This session will examine the impact of trend and inflation assumptions/scenarios on property/casualty reinsurance pricing and reserving. A speaker from Conning will present the company’s latest study titled “Inflation in Property-Casualty Insurance: How Bad Can It Be?” A speaker from ISO will present information on ISO’s approach to estimating trend incorporating econometric variables such as inflation.
Source:
2010 Seminar on Reinsurance
Type:
concurrent
Moderators:
Michel Rochette
Panelists:
Beth Fitzgerald, Stephan Christiansen
Capital Markets Update
This session will provide a capital markets update from the perspective of the buyers/ sellers of risk and the brokers that bring the parties together. The session will discuss the current state of the market, developments over the past few years, and possible direction of the market for the future.
Source:
2010 Seminar on Reinsurance
Type:
concurrent
Moderators:
Michel Rochette
Panelists:
Alex Korb, Michael Millette, Ed Torres
Understanding and Projecting the Underwriting Cycle - Insurance and Reinsurance
What drives underwriting market cycles? How do insurance and reinsurance results change over the cycle? What are the relationships between premiums and prices, indicated and reported reserve development, and calendar-year and accident-year results over the phases of the cycle? This session will present a historical analysis of these relationships and trends. Then the panelist will show how these relationships can be modeled to create a cyclical pattern of results that are consistent with historical results and offer testable leading indicators of future market turns.
Source:
2010 Seminar on Reinsurance
Type:
concurrent
Moderators:
Michel Rochette
Panelists:
Dave Clark
Truth About Exposure Curves
Actuaries and underwriters have been using exposure curves for generations from Lloyd’s scales, reinsurers’ curves to ISO products and catastrophe models. The panel will explain where these curves come from. In addition, they will explore the relative merits of each curve in general as well as how to use them in particular cases.
Source:
2010 Seminar on Reinsurance
Type:
concurrent
Moderators:
Michel Rochette
Panelists:
Michael Nori, Kevin Hilferty
Financial Crisis - Technical Look Back
This timely session will have distinguished members of the CAS discuss recently published papers that are germane to the recent events in the financial arena. The two papers that will be discussed are “Data and Disaster: The Role of Data in the Financial Crisis” and “A Primer on Credit Derivatives.”
Source:
2010 Seminar on Reinsurance
Type:
concurrent
Moderators:
Michel Rochette
Panelists:
Louise Francis, James McNichols
Farmowners Reinsurance Pricing Issues
This session will cover property and liability issues with farmowners insurance and reinsurance. During this session, audience members will be exposed to the differences between farmowners and traditional lines of business. Panelists will review rating issues, considerations, and techniques for farmowners reinsurance.
Source:
2010 Seminar on Reinsurance
Type:
concurrent
Moderators:
Michel Rochette
Panelists:
Paul Vendetti, Robert Downs
Reinsurance Counterparty Risk- a Transition Matrix / Recovery Rate Approach
With the subprime credit crisis and ensuing economic crisis, counterparty risk has become a central issue in evaluating financial transactions. For many property/casualty insurance and reinsurance organizations, reinsurance counterparty risk represents the largest source of potential bad debt exposure.
The session will begin with an overview of the reinsurance counterparty risk considerations from a ceding company perspective. It will continue with a discussion of how traditional methods of evaluating this risk may fall short of rating agencies and companies’ internal needs. This will lead into a discussion of a more sophisticated stochastic credit-based approach based on information readily available from the bond market such as the following:
* Financial strength ratings (S&P, Moody’s, etc.)
* Transition matrices, which provide probabilistic expectations of the movement in financial strength ratings over time, including default rates
* Recovery rates, or the amount of financial recovery historically available in the case of default
The session will provide an overview of a transition matrix/recovery rate approach to evaluating reinsurance counterparty risk. Assumptions and parameter issues involving base-case and stressed scenarios will be discussed, and a numerical example provided to enhance understanding of the methodology.
Source:
2010 Seminar on Reinsurance
Type:
concurrent
Moderators:
Michel Rochette
Panelists:
Scott Belden, Stuart Hayes
Ocean Marine and Offshore Energy Pricing - Overview and Current Issues
This session will provide an overview of the ocean marine and offshore energy market and discuss issues faced by actuaries pricing this business. Current issues facing the market, such as the recession and catastrophe loss activity in the Gulf of Mexico and the impact on the business, will be examined along with a discussion of some ways that marine actuaries address these issues.
Source:
2010 Seminar on Reinsurance
Type:
concurrent
Moderators:
Michel Rochette
Panelists:
Henry Newman
D&O Predictive Modeling
Two different approaches to modeling/predicting D&O Securities Class Action Claims will be presented. One approach uses econometric variables such as the Volatility Index (VIX), etc. The other is an approach based on “corporate governance risks.”
Source:
2010 Seminar on Reinsurance
Type:
concurrent
Moderators:
Michel Rochette
Panelists:
Jennifer Kish, Ric Marshall
Insurance Fraud
Two experts in the area of insurance fraud, Mr. Dan Johnston, Executive Director of the Massachusetts Insurance Fraud Bureau and Mr. Frank Sztuk, National SIU Strategist for the Hanover Insurance Group, will present a program that will highlight insurance fraud. The presentation will focus on the overall problem of insurance fraud and the current state of fraud efforts in Massachusetts.
Source:
2010 Regional Affiliate - CANE
Type:
affiliate
Panelists:
Dan Johnston, Frank Sztuk
Keywords:
Insurance Fraud
ERM in the Aftermath of the Financial Crisis
What lessons have insurers learned from the financial crisis? What are the essential ingredients of a successful Enterprise Risk Management (ERM) program? Following the worst financial meltdown since the Great Depression, where does the practice of ERM go from here? The panelists will share their perspectives on ERM, including lessons learned about governance, risk appetite and capital management. Panelists will also explore the role of ERM within a dynamic insurance company and impact of ERM from leading rating agency's perspective.
Source:
2010 Regional Affiliate - CANE
Type:
affiliate
Panelists:
Michael Angelina, Raj Guttha
Keywords:
ERM, Financial Crisis
Actuarial Accounting - A Cautionary Report
With two CAS actuaries recently convicted of violating securities and criminal laws, it is important to review our legal obligations to the public. This presentation recounts the case against five AIG and Gen Re insurance professionals, focusing on the accounting of reinsurance contracts. The facts of the case will be reviewed and the audience walked through the relevant securities and criminal laws. It is an eye-opening presentation that will educate actuaries on how important documentation is, how important it is to be conscious and precise in communications, and other pertinent professional considerations.
Source:
2010 Regional Affiliate - CANE
Type:
affiliate
Panelists:
Dan Young
Keywords:
Actuarial Accounting
Trends in the P/C Insurance Industry: Challenges Amid the Economic Storm
This presentation will provide a comprehensive overview of the most pressing challenges confronting property/casualty insurers today. Topping the list are persistent soft market conditions compounded by the weak economy and accelerating inflation. Issues addressed include the impacts of deteriorating economic conditions on exposure and premium growth as well as investments. Additional topics include a review of profitability trends, underwriting performance for the industry overall and for key lines, capacity, consolidation, threats in the tort system and regulatory issues.
Source:
2010 Regional Affiliate - CANE
Type:
affiliate
Panelists:
Steven Weisbart
Keywords:
P/C Insurance
The Shoe Yet to Drop: 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. 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 they consider the risk of inflation to be a serious threat.
Source:
2010 Regional Affiliate - CANE
Type:
affiliate
Moderators:
Michel Rochette
Panelists:
Thomas Lee, Daniel North
Keywords:
Inflation Risk, Property/Casualty
