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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.
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". A practitioner’s approach will be taken. This session will be a continuation of the REI-3 Case Study that introduces the basic rating methods.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
James Paugh
Panelists:
Michael Angelina, John Buchanan
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 include a game atmosphere, including bingo style cards and gaming chips to simulate what transpires in the real world.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
James Paugh
Panelists:
Halina Smosna, Kyle Vrieze
Is there a Need for State or National Catastrophe Funds for Homeowners Insurance?
There has been recent legislative activity on this issue at both the state and National level. HR 3355 which creates a National catastrophe Fund was passed by the US House of Representative in November 2007. Similar bills have been introduced in the US Senate. State Catastrophe fund legislation was introduced during 2007 legislative sessions in Massachusetts, Texas, New Jersey and Louisiana. A bill was introduced in the Massachusetts legislature in November 2007. Florida has the Florida Hurricane Catastrophe Fund and California has the California Earthquake Authority.
This session will begin by examining how well the Florida Hurricane Catastrophe Fund has worked since its inception for the 1994 storm season. The panel will illustrate how a National Catastrophe fund can be structured to compliment state catastrophe funds such as the FHCF.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
James Paugh
Panelists:
John Forney
Homeowners Catastrophe Ratemaking - Cost of Exposed Capital/Risk Loads
The panel will examine various methods currently used in the ratemaking process to recognize the risk of exposing large amounts of capital to catastrophic events. The Panel will examine capital market costs associated with high layers of catastrophe coverage. The panel will also examine methods of allocating the cost of exposing insurance company capital and the cost of reinsurance to state and territory.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
James Paugh
Panelists:
David Appel, Shantelle Thomas
Massachusetts Private Passenger Automobile
In November 2007, carriers in Massachusetts filed for independently developed rates for the first time in 30 years, rather than having the state determine the mandated rate level to be used by all carriers. The panelists will describe the history that lead up to the new environment, the new regulations, and the responses from the industry to the new “managed competition” environment.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
James Paugh
Panelists:
Cara Blank
Update on Auto Insurance Costs/Vehicle Symbol Development
The use of more refined vehicle rating plans in personal and commercial lines by several market innovators is beginning to cause companies to take a closer look at their own plans in order to make sure that their plans in conjunction with their more segmented rating plans are producing the most accurate rates. This session will discuss some of the plans being used by these insurers and discuss alternative vehicle rating systems which make better use of vehicle's individual characteristics.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
James Paugh
Panelists:
Kim Hazelbaker
Sophisticated Price Optimization Methods
Recent years have seen an increase in the sophistication of predictive modeling of claims and, more recently, policyholder retention and conversion rates. Often, however, relatively manual techniques are then used to derive the actual rates to apply in practice, failing to leverage the full potential of the underlying analyses.
This session will explore how sophisticated price optimization methods can be used to determine rates that best match an insurer's strategic profit and growth objectives. The session will describe some of the technical approaches to price optimization, outline some potential pitfalls to avoid, and discuss real examples of how such methods can improve performance in practice.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Martha Winslow
Panelists:
Duncan Anderson, Alessandra Santoni, Francisco Gomex-Alvado
Use of Scoring in Marketing
Customer life cycles offer many opportunities for improving profitability - prospecting, lead generation, risk segmentation and selection, acquisition, retention, cross sell, upsell, attrition, and win back. But it is not just the contractual relationship; there is also price elasticity for brand value to consider over multiple policy periods for the"life time,' We will discuss how to define a customer, and then how predictive models and operational implementation can improve your company's profitability, both immediately and in the future.
In addition, the marketing department of an insurance organization seeks alignment with their underwriting department in terms of what attributes are associated with a "good" risk when pursuing new business. External predictors used in a company’s underwriting/pricing models can be leveraged to achieve better alignment. Potential new accounts can be scored and ranked based on the likelihood of passing through a company's underwriting filter. The accounts can also be compiled reflecting the relevant distribution channel. The distribution channel factors considered include proximity, type of account, and referral information related to the targeted account.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Martha Winslow
Panelists:
Martin Ellingsworth, Gary Ciardiello
Homeowners
Many GLM ratemaking applications have focused on private passenger auto examples. This session will discuss how the nature of some homeowners’ variables affects a predictive modeling analysis. These include both traditional rating variables (such as amount of insurance, deductible, and policy form) as well as external variables related to demographics or weather. The typical indivisible premium approach for analyzing homeowners’ data does not lend itself well to proper investigation of these explanatory variables; therefore, the presentation will outline a case for modeling homeowners separately by peril. The panel will also survey the myriad ways various companies have incorporated this information into their rating plans, and discuss the advantages and disadvantages of various approaches.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Martha Winslow
Panelists:
Gaetan Veilleux
An Introduction to GLM Theory
The use of generalized linear models (GLMs) has taken the North American property/casualty insurance industry by storm, in many cases replacing traditional one-way actuarial analyses. This session is designed to provide the actuary with an overview of the statistical theory of GLMs and give illustrative examples and intuitive explanations that clarify the theory. The session will begin with an explanation on the formularization of GLMs-understanding the linear predictor, link function, offset term, error term, and the like. Building upon this foundation, the session will discuss typical model forms, the effect of different assumptions, model diagnostics and the use of interaction variables.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Martha Winslow
Data Preparation for Predictive Modeling
A crucial step in predictive modeling, data preparation is the most time consuming step in many predictive modeling projects. Data preparation involves exploring and cleaning data as well as augmenting data with externally and internally derived variables. This session discusses the differences between data preparation for traditional-way analyses and multivariate analyses and discusses the pitfalls associated with these new data requirements.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Martha Winslow
Panelists:
Ravi Kumar, Wayne Jiang
Translating Strategic Objectives into Individual Decisions: The Emerging Landscape of Decision Optimization
This session will demonstrate how to leverage predictive analytics and business rules and take them beyond the calculation of a score to the optimization of a decision. We will focus on how to take an organization's many analytical models and predictive analytics and organize them into a single decision framework to improve the decision making process.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Martha Winslow
Panelists:
Scott Horwitz
Introduction to Credibility
Considering credibility in the context of ratemaking concepts, this session will review variables affecting credibility and credibility formulas, as well as practical techniques for applying and increasing credibility. Both classical and Bühlmann models will be described.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Michael Mead
Introduction to Increased Limit Factors
This session will present an overview of increased limits ratemaking. The session will cover general concepts, such as calculating limited average severities, and practical problems with developing increased limits factors (ILFs) from a distribution of loss data. The session will also provide an overview of excess and deductible pricing. Finally, the session will discuss common approaches for calculating ILFs.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
Geoff Werner
Ratemaking Relativities
This session will examine the various methods that actuaries use to allocate overall average rates to various sub-divisions of a line of business, including territories, classifications, and tiers.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
David Leblanc-Simard
Overall Rate Indication
Covering the basic foundations of the ratemaking process, this session's topics will include data organization for premium and losses, data adjustments such as current rate level, loss development and trend, and determination of the expense provision. The presentation will have an emphasis toward personal lines. Not intended for those preparing for Exam 5.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
David Leblanc-Simard
Raising Your Actuarial IQ (Improving Information Quality)
Predictive modeling, Sarbanes-Oxley, and other recent developments have renewed the focus on the quality of information. In this session, we approach data quality from the perspective of the cost of poor information quality. We then define information quality and give tips and examples on how to pursue it including how actuaries can be pro-active in improving data quality.
The emphasis will be on:
1. Techniques that should be easy for most actuaries and analysts to apply right away,
2. Aspects of data quality that actuaries are best able to fulfill.
This session is drawn from the work of the CAS Data Management Educational Materials Working Party (Research Working Party 5).
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
David Leblanc-Simard
Panelists:
Virginia Prevosto, Thomas Nowak, David Hudson
External Data Sources
It is widely believed that the usefulness of predictive models can be increased by incorporating external sources of data, along with company specific data, into the project database. This session will feature presentations by users of external data. The data featured in this session is either free or costs no more than $250.00 to acquire. Examples of external data will include information about demographic, occupational and geographic data. Attendees at this session will learn how to find the data and download the data. “Tricks” needed to transform the data into useful form will be covered. Some examples of applications of the data will be covered.
Source:
2008 Ratemaking Seminar
Type:
concurrent
Moderators:
David Leblanc-Simard
Panelists:
John Stenmark, Christopher Monsour, Mark Florenz
Opening Session
Actuaries are becoming more important to the running of reinsurance businesses from reserving to pricing to aggregate and capital management. This session will hear from a senior actuary who is now Managing Director of the largest managing agency at Lloyd's. How are actuaries in the UK regarded by senior management? Is this different than how actuaries are regarded in other markets? What roles are actuaries capable of taking on? Which actuarial skills have helped David in his career?
Source:
2007 London CARe Seminar: Pricing U.S. Reinsurance in a Softening Market
Type:
general
Panelists:
David Lang
Workers Compensation Pricing
This session will cover pro-rata and excess of loss reinsurance pricing for Workers Compensation. Topics will include a discussion of loss trends, particularly dealing with sharply different medical and indemnity severity trends and declining frequency. The speaker will describe the difficulties associated with determining appropriate excess loss development factors, and he will suggest possible methodologies for calculating reasonable factors. The speaker will discuss the NCCI’s approach to calculating excess loss factors (ELF's) and will review NCCI’s new method using Seven Hazard Groups. Finally, he will discuss key benefit reforms that have occurred in certain large states, and how the impacts of benefit changes can differ significantly between gross and excess results.
Source:
2007 CARe LAS - Reinsurance Boot Camp on Pricing Techniques
Type:
affliliate
Panelists:
Robert Yenke
Review of Reinsurance Structures and Pricing Pro-rata Treaties
This session will start with a review of standard and non-standard reinsurance structures as well as a discussion of the various motivations for the buyers. It will then cover the mechanics of rate level loss ratio calculations and then move on to cover more advanced topics, including dealing with a changing mix of business, balancing responsiveness and stability, and loading for catastrophes and large losses. This session will also review approaches that the actuary can take when data is limited, including appropriately benchmarking versus similar companies and making rate comparisons. The speaker will also give his thoughts regarding the difficulties in rating covers for start-up entities.
Source:
2007 CARe LAS - Reinsurance Boot Camp on Pricing Techniques
Type:
affliliate
Panelists:
Glen Leibowitz
Property and Casualty Exposure Rating
This session will cover exposure rating for property per risk treaties and general casualty business. It will start with a brief review of the basic premise and mechanics of exposure rating. The casualty portion of this session will review the calculation and uses of limited expected values and discuss the strengths and weaknesses of various types of ISO curves. The session will review issues related to exposure rating personal auto liability and different ways of quantifying the impact of ALAE. It will also cover more advanced topics, such as applying the standard exposure rating methodology to evaluate the adequacy of client umbrella pricing as well as exposure rating excess of loss treaties covering umbrella. The property portion of the session will discuss the methodology and data underlying the ISO PSOLD property per risk rating model. The speaker will compare this approach with traditional property per risk rating based on loss to value curves. The speaker will also discuss key data issues, such as when the limit profiles provided do not match the treaty definition of risk. Finally, the speaker will review special issues with regard to exposure rating homeowners business and discuss the difficulties of exposure rating shared and layered business.
Source:
2007 CARe LAS - Reinsurance Boot Camp on Pricing Techniques
Type:
affliliate
Panelists:
Halina Smosna, Thomas Cosenza
Professional Liability Pricing
This session will cover unique pricing approaches and issues related to pricing Directors and Officers Liability and Medical Malpractice. The D&O session will start with a description of the coverage, the different sub-classes of business and issues relating to them. The speaker will then review his market capitalization based approach for pricing public D&O, which is based upon the historical frequency and severity of security class action suits. He will also discuss some of the claims handling issues that impact the rating of this coverage. The second speaker will review key issues and unique features of rating medical malpractice reinsurance such as clash coverage and ECO/XPL. The discussion will also include recent movement in loss trends, and recent tort reforms and their possible impacts on reinsurers.
Source:
2007 CARe LAS - Reinsurance Boot Camp on Pricing Techniques
Type:
affliliate
Moderators:
Tim Cardinal
Panelists:
John Lewandowski, Kasing Chung
Experience Rating
This session will review the mechanics and finer points of experience rating. Topics covered will include a review of experience rating methodology, a discussion of the leveraged effect of trend, sources and variability of excess loss development, the impact of changes in the mix of business, and a discussion of diagnostic checks to validate the assumptions in the model. The speaker will also present an application of the Cape Cod method to experience rating and an approach for reflecting changes in policy limit profiles. Finally, he will discuss issues and methodologies for weighing experience and exposure indications.
Source:
2007 CARe LAS - Reinsurance Boot Camp on Pricing Techniques
Type:
affliliate
Panelists:
David Clark
Evaluating Loss Sensitive Treaty Terms
This session will start by reviewing different treaty features. It will then discuss methods for deriving aggregate distributions. The speaker will review different methods that can be used and when each is appropriate. He will also discuss how to view and attempt to quantify parameter uncertainty as well as approaches for reviewing the reasonability of the indicated aggregate distribution. Other topics that will be covered include responding to issues commonly raised by underwriters, considering deficit and credit carry forwards, the frequent misuse of curve fitting approaches to determine size of loss curves, and using aggregate distribution modeling to evaluate risk transfer.
Source:
2007 CARe LAS - Reinsurance Boot Camp on Pricing Techniques
Type:
affliliate
Panelists:
Jeffrey Dollinger
