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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.
Economic and Mortality Scenario Generation
Economic Capital quantification techniques require the use of stochastic generators to derive the distribution of events faced by organizations. The development and parameterization of these stochastic events pose a challenge and an opportunity. This session will focus on the two risk categories, economic and mortality, facing many insurance organizations.
Source:
2008 Enterprise Risk Management Symposium
Type:
concurrent
Moderators:
James Berquist
Panelists:
Tom Crawford, Matthew Willis
Terrorism Risk
The risk of terrorism conjures up a host of complex issues for organizations potentially affecting their human capital, their clients, their competitors, their jurisdictions, their investments, their profits, etc. Despite the unknown description of this monster, companies should begin by examining various terrorism event scenarios and planning responses, which may include establishing protective measures to mitigate the impact of an event. In that vein, this session explores the implications of a hypothetical terrorist attack, including how various organizations may be directly and indirectly impacted. In addition, terrorism insurance protection currently available in various geographic areas throughout the world will be discussed including interpretations of event triggers and coverage definitions.
Source:
2008 Enterprise Risk Management Symposium
Type:
concurrent
Moderators:
James Berquist
Panelists:
Robert Hartwig, Howard Mills, Lawrence Mirel
Implementation and Uses of Economic Capital - CRO Panel
This session will provide case studies from CROs of leading-edge insurance companies who have implemented an Economic Capital framework into their financial modeling, business decision-making, and risk-adjusted pricing and performance management framework. The companies will provide both cross-sector and multinational perspectives.
Source:
2008 Enterprise Risk Management Symposium
Type:
concurrent
Moderators:
Vincent Yezzi
Panelists:
Mike Murphy, Charlie Shamieh, Anant Bhalla
ERM Workshop 3- Operational Risk
Operational risk has been defined as "the risk of direct or indirect loss resulting from inadequate or failed internal processes, people, and systems or from external events." Examples of operational risks include information technology, business continuity, fraud, and reputation risk, among others. This has long been acknowledged as a risk that should be included in any enterprise risk management model; however, it has not always been embraced as a measurable, quantifiable risk. This workshop will provide insightful guidance from industry leaders who will address:
* What is the state of the art today in the management of operational risk?
* Where are the gaps between where the practice is now and where it needs to go?
* What steps are necessary to close the gaps?
* What are the implications of failing to close the gaps and advance the practice?
Highlights of the workshop include the opportunity to:
* Get hands-on experience developing operational risk strategies through an interactive exercise.
* Communicate with a panel of experts during a town hall meeting-style question and answer session.
Source:
2008 Enterprise Risk Management Symposium
Type:
Workshop
Keywords:
Operational Risk
ERM Workshop 1- Banking and Insurance
ain insights from experts in banking as well as life and casualty insurance as they share current ERM best practices. The Basel Accord has encouraged bankers to use company-driven ERM models for financial and nonfinancial risks to determine required regulatory capital. Insurers are using principles-based approaches to develop similar economic-based asset requirements unique to their business model. You just might discover that models from others in the financial services industry can be used for calculating economic capital, pricing, performance measurement, and portfolio management at your company.
Source:
2008 Enterprise Risk Management Symposium
Type:
Workshop
Keywords:
banking and insurance
The Underwriting Cycle is Alive and Well and Ready to Kill Your Company: Are Actuaries to Blame?
This presentation by Insurance Information Institute President Dr. Robert P. Hartwig will provide a comprehensive overview of the cyclical forces driving the p/c insurance industry today.
Among the key factors reviewed are trends in profitability, underwriting performance, ratings and financial strength, investment volatility, the tort system and developments in the regulatory and legislative arena.
Source:
2008 Ratemaking Seminar
Type:
general
Moderators:
Vincent Yezzi
Code of Professional Conduct and Relevant Actuarial Standards of Practice
Members of the Committee on Professionalism Education will present an overview of the Code of Professional Conduct and the relevant Actuarial Standards of Practice used by ratemaking actuaries. The panelists will then facilitate a number of case studies that ratemaking actuaries may face and offer different points of view regarding how ratemaking actuaries can handle these real life issues.
Note that under the revised Qualification Standards, three (3) of the thirty (30) CE Hours need to be on professionalism topics. This session would provide attendees with 1.6 CE Hours related to professionalism.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Vincent Yezzi
Panelists:
Martin Menard, Betsy Branagan
Data Organization and Analysis in Mortgage Insurance: The Implications of Dynamic Risk Characteristics
The capability for mortgage guaranty insurance companies to establish loss reserves conditioned on a dynamic risk characteristic, delinquency status, presents particular data issues. There is a need to collect, organize, warehouse, and analyze large data sets that contain loan-level detail over consecutive evaluation dates in order to measure the probability of claim, conditioned on delinquency status. The generally accepted methodology of reserving for mortgage guaranty insurance claim liabilities requires evaluation of dynamic risk characteristics because mortgage guaranty insurance companies need only reserve for loans currently delinquent, both known and IBNR. Because each loan’s delinquency status is usually revised monthly by the mortgage servicing company, the cohort of insured loans currently delinquent changes each month and therefore is dynamic with respect to time. Coincidentally, delinquency status has been found to be a strong predictor of future losses, so it is imperative for mortgage guaranty insurance companies to estimate reserves as a function of delinquency status, a dynamic risk characteristic. Maintaining historical economic factors in step with the historical delinquency and claim data can also enhance the rese.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Vincent Yezzi
Dirty Data on Both Sides of the Pond
While the quality of data used in many insurance ratemaking analyses may be regarded as poor, little has been done to quantify the prevalence of poor data or its impact on analyses. In 2006, a paper was produced by the GIRO (General Insurance Research Organization) Data Quality Working Party and presented at the 2006 GIRO conference (Campbell et. al., 2006). The Working Party was formed because of the perception that data quality is an important issue that is given insufficient attention by the managements of insurance industry companies. The Working Party’s report presented several arguments to support applying increased resources to data quality including recounting of data quality “horror stories,” presenting the results of a survey of actuaries and insurance professionals and an examination of the impact of data quality issues on an actuarial database. The authors of the 2006 paper decided to continue their research. In particular, the data quality survey that attempts to quantify the extent of data quality problems has been distributed to a considerably wider audience and the number of respondents has more than doubled. In addition, significant changes have been made to a data quality experiment that attempts to quantify the extent of data quality problems in property casualty insurance, by simulating data quality problems in data used in an actuarial analysis.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Tapio Boles
Predictive Modeling in Insurance using ROOT
This note briefly describes ROOT, which is a free and open-source data mining tool developed by CERN, the same lab where the World Wide Web (WWW) was invented. Development of ROOT was motivated by the necessity to address the challenges posed by the new generation High Energy Physics experiments, which are expected to produce and analyze thousands of terabytes of very complex data every year.
ROOT is an object oriented data analysis framework, written in C++. It contains several tools designed for statistical data exploration, fitting, and reporting. In addition, ROOT comes with powerful high-quality graphics capabilities and interfaces, including an extensive and self-contained GUI development kit which can be used to develop easy to use customized interfaces for the end users. This note provides some simple examples of how ROOT can be used in an insurance environment.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Tapio Boles
The Changing Regulatory Environment for Catastrophe Models
Market disruptions in coastal residential insurance from Texas to Maine have led government officials in many states to examine its root causes. Direct insurers, reinsurers, rating agencies and in some cases catastrophe modeling firms have recently come under government scrutiny. Greater regulatory oversight of model developers has been suggested by some as a solution to unstable availability and affordability in certain markets. This session will survey historical and proposed regulatory frameworks, the current landscape of activities at the state, NAIC, and federal level, and explore the consequences-intended and unintended-of recent proposals.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Michael McCarter
Panelists:
John Rollins, Cara Blank, Chet Szczepanski
Reinsurance Risk Transfer
Accounting treatment for some reinsurance contracts hinges on whether or not the contract transfers risk, yet there is no clear single standard for risk transfer testing in all situations. In 2005, the CAS Working Party on Risk Transfer Testing issued its report, describing a process for determining whether risk transfer testing of a contract is necessary and proposing two testing methods that can be applied to a broad range of contracts. A summary of the report was published in the Spring 2007 volume of the journal Variance, which will be presented in this session.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
George Levine
Use of GLM in Rate Filings
What makes a good rate filing when GLM or other predictive modeling techniques are the basis for the analysis? How can you sufficiently demonstrate that the results of predictive modeling produce rates that are neither excessive, inadequate or unfairly discriminatory? Both the regulatory and the company viewpoint will be represented. A lively discussion should ensue!
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Joseph Herbers
Panelists:
Gaetan Veilleux, Dave Dahl, Chuck Romberger
The Large Corporate Buyer and Value Creation through ERM
This session will focus on the non-financial commercial insurance buyer and their decision on risk financing/transfer as a function of the cost of risk financing/transfer (e.g., premiums). In particular, the emphasis will consider the goal of creating and enhancing shareholder value in the insurance decision process, consistent within an Enterprise Risk Framework.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Joseph Herbers
Panelists:
Steven Lawrence, Kip Bohn
Update on Research: Capital Management and Capital Allocation
The ratemaking silo, one of the traditional actuarial functions, relates to an insurer's enterprise-wide ERM process in several ways. Two aspects of this relationship will be discussed in this session. They are the linkage of risk management, capital management, and financial management within the company’s ERM processes. Another are procedures of how to best appropriate (or allocate) capital for the purposes of reflecting the cost of capital in the ratemaking process.
The first part of the session will cover a CAS-CIA-SOA Joint Risk Management Section’s recent research report that explores the linkage between risk management, capital management and financial management within insurance companies and other industries.
The 2nd part of the session will cover a new approach to capital allocation based on a paper winning the “Best Paper: Practical Risk Management Applications” prize at the 2007 ERM Symposium in Chicago.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Joseph Herbers
Panelists:
Aaron Halpert, Neil Bodoff
Logic, Fallacies, and Paradoxes in Risk/Profit Loading in Ratemaking: A Socratic Dialogue
The CAS research forums, including the Committee on the theory of Risk and the VALCON e-mail forum sponsored by COTOR, have produced numerous thought-provoking issues and considerations in determining profitability benchmarks within the property/casualty insurance products. Issues discussed and debated will include, but not be limited to, the best use of risk metrics, comparing and contrasting the different philosophies of capital appropriation to line, use of risk-adjusted discount rates rather than a separately calculated risk load, the usefulness of CAPM theory, and a host of other topics. Is there a true market value to consider and how is it best measured? How is the time value of risk reflected? The session will be structured as a Socratic dialogue between the moderator, who will serve as host in the audience, the panelists, and the audience themselves.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Joseph Herbers
Panelists:
Richard Derrig
Pricing Approaches and Considerations for Large Accounts
The past decade has resulted in an increasing relevance of actuarial approaches in pricing large accounts. Considerations differ from traditional manual rating due to the need to consider individual risk characteristics, work closely with insurer and broker account executives, and tailor insurance programs to the risk appetite of the client. This session will discuss these aspects including actuarial approaches to large account pricing, the account negotiation process, and controls that can be used to understand the impact of negotiated insurance programs on company results.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Joseph Herbers
Panelists:
Mary Krautheim
Price Governance: Comprehensive Approaches to Monitoring Price
As competition in the commercial lines markets increases insurers are striving to implement controls that can insulate or mitigate adverse consequences that can result. Many seek to better understand and favorably influence underwriting results by improving price monitoring approaches and capabilities. Included will be discussion of the continuum of price monitoring capabilities, common shortfalls, and using monitors to improve underwriting results. Also discussed will be the state of the industry as regards price monitoring, tailoring approaches to characteristics of specific segments, and common approaches and pitfalls in the context of a varied commercial lines marketplace.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Steven Johnston
Panelists:
Cameron Vogt
Physicians Professional Liability: The Current State of the Market and Future Opportunities through Predictive Modeling
This session will provide a brief overview of historical events and trends that have impacted the physicians professional liability (or medical malpractice) industry. In addition, panelists will look at the present state of the medical malpractice industry, including current methods used to price this line of insurance. Lastly, attendees of this session will see the results of a predictive modeling case study, performed on a large writer in a top 10 state. This case study will demonstrate potential deficiencies in the current pricing techniques and highlight opportunities to improve the efficiency of the underwriting or pricing in this line of insurance that has had minimal exposure to the benefits of predictive modeling.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Steven Johnston
Panelists:
Paul Anderson
Non-Standard Distribution Channels: Managing General Agents and Programs
Increasingly many insurers are pursuing growth using less traditional distribution channels; by capitalizing on the expertise of participants in the distribution chain, or utilizing other alternative market approaches. This session will discuss a variety of approaches that have emerged in the marketplace, as well as variations of these arrangements. Discussion will include managing risks and capitalizing on opportunities these arrangements present to insurers and their distribution partners, including historic successes and challenges in the context of an increasingly competitive marketplace.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Steven Johnston
Panelists:
Dennis Sparks
Latent Claims from Construction and Other Emerging Issues
This session will address emerging and/or latent claim risks that pose a threat to insurer’s current underwriting activities, or could create serious or catastrophic losses on past policies as well. Discussion will include an update and background on construction defect claims, and will also cover existing or emerging threats faced by insurers, such as welding rod poisoning, silica exposure, and nano-technology, as well as a high level update on asbestos and environmental litigation.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Alfred Weller
Panelists:
Ron Kozlowski
Workers Compensation Predictive Modeling
According to a recent article in the Harvard Business Review, "Competing on Analytics," those companies that apply rigorous analytic methods to their data can expect to enjoy a significant competitive advantage. One of these analytical approaches is known as predictive modeling. Predictive modeling is widely applied in personal lines but its use in commercial lines is relatively new. This session will introduce applications of predictive modeling in workers compensation including:
* Underwriting and ratemaking
* Claimant and premium fraud detection
* Reserving
The session will also provide an overview of predictive data elements, key modeling approaches, and implementation considerations for workers compensation. We will discuss predictive modeling techniques such as GLMs, decision trees and clustering techniques and how they apply to workers compensation.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Alfred Weller
Panelists:
Bob Sanche, Dave Mohrman
Key Drivers of Workers Compensation Costs-Economic Perspectives
This session will focus on two recent research studies by NCCI's economists on drivers of medical severity and growth in the long-term care industry. Medical severity increased by more than 70% over the six years from 1996/97 to 2001/2002, while the medical care component of the Consumer Price Index increased only 21% over this same period. Research will be presented that decomposes this large increase into its components to examine what the drivers are. An emerging issue that will also have an impact on loss costs due to the aging of the population is growth in the high risk long-term care industry. Research will be presented that examines industry trends and injury characteristics for nursing home facilities, retirement living centers, and home health care services that together make up the long-term care industry.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Alfred Weller
Panelists:
Tanya Restrepo
Workers Compensation-State of the Market
An overview of the recent state of the workers compensation line will be presented from both a rating bureau and company perspective. The review will include a discussion of recent trends in premium volume, rate changes, financial results, and indemnity and medical costs. The panel will also provide an in-depth review of claim frequency including recent changes by claim size and occupation.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Mark Vonnahme
Panelists:
Tony DiDonato, Chauncey Fleetwood
Workers Compensation-Selected State Issues
The Death Spiral of a Workers Compensation Insurance System: Maine 1981-1992. This will be a report of the elements of disaster put in place by the Maine Legislature in the late 1970s and 1980s, the failure of specific temporary measures to keep carriers writing in the marketplace, the withdrawal of carriers from the marketplace, and the politics of genuine reform that saved the system.
Workers' Compensation in the Bay State: A presentation about the current health of the Massachusetts Workers Compensation market from the perspective of the Workers Compensation Rating and Inspection Bureau of Massachusetts will be followed by an overview of the workers' compensation ratemaking process in Massachusetts.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Jeffrey Hay
Panelists:
Robert McCarthy
