General Session 2
A unique face-to-face discussion with renowned directors of some of the most prominent corporations, this session is sure to be one of the symposium's highlights as expert panelists discuss the role of the board and answer your questions. As clearly established in regulatory and best-practice frameworks, directors have the ultimate responsibility to ensure that an effective ERM program is in place. What is their role in ERM? What are the expectations for management? How can they set the tone from the top and provide meaningful oversight? Are their needs being served? James Lam will examine these issues with our distinguished panelists and answer your questions.
Source:
2007 Enterprise Risk Management Symposium
Type:
general
Seeking Standardization in Fair Value, Risk Measures and Simulation
Fair values (estimated as expected values) and risks (measured at different confidence intervals and terms) are reported on the accounting balance sheets and disclosed in the notes to financial statements. Bank supervisors, market regulators, and accounting standard-setters are trying to harmonize their reporting requirements on the disclosure of risks and fair values. Market practitioners use different models, parameters, and data inputs to estimate fair value and measure risks of positions. They often use inconsistent assumptions when they define underlying processes that cause changes in fair values and risks. The choice of underlying processes and analytical distribution functions with respect to their goodness-of-fit to the empirical evidences becomes critical in aligning the fair valuation and risk measurement approaches. This session will cover existing market practices and issues of aligning fair valuation and risk measurement approaches in banks and insurance companies. It will address the issues and solutions of making consistent valuation techniques and risk measurement models. In addition, this presentation will suggest a technique of assessing a goodness-of-fit of analytical distribution functions to the tails of empirical distributions
Source:
2007 Enterprise Risk Management Symposium
Type:
concurrent
IRR, ROE, PVI/PVE
Source:
2007 Ratemaking Seminar
Type:
Paper
Moderators:
Jonathan Evans
Keywords:
IRR, ROE, PVI/PVE
Forecasting Workers Compensation Severities and Frequency Using the Kalman Filter
Source:
2007 Ratemaking Seminar
Type:
Paper
Moderators:
Jonathan Evans
Keywords:
Workers Compensation Severities, frequency
Catastrophes and Workers Compensation Ratemaking
Source:
2007 Ratemaking Seminar
Type:
Paper
Moderators:
Jonathan Evans
Keywords:
Catastrophes, Workers Compensation Ratemaking
Captive Insurance Market Update
In this session, panelists will briefly describe various capture structures and domiciles, and discuss reasons for forming a captive, as well as the many issues encountered in estimating rates. Current developments in fronting arrangements, captive expenses, and regulatory changes will be discussed.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Sandra Santomenno
Panelists:
Ann Conway, Christopher Ridge
What's your Final Answer?
Session panelists will develop these concepts through various examples and alternative approaches.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Sandra Santomenno
Panelists:
Steven Armstrong
Actuarial Analysis of Catastrophes & Terrorism for Commercial Insurance
Subsequent to September 11, 2001 the insurance industry has been struggling to prepare for large-scale terrorist attacks. Sophisticated catastrophe models for terrorism have been developed and continue to evolve. This session will discuss the challenges actuaries face in translating the output from catastrophe models into financially meaningful numbers, such as rate indications and solvency analyses. In particular, modeling the impact of TRIA necessitated combining catastrophe model output with complicated assumptions about the allocation of losses to individual companies throughout the industry. In the future, actuaries are likely to be faced with many more similar requests at all scales of the insurance enterprise.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Sandra Santomenno
Panelists:
David LaLonde, Rimma Maasbach
Rate-Filing Best Practices
What makes a good rate filing? It depends on whom you ask. Now is your opportunity to ask several individuals with very different opinions. Both regulatory and company viewpoints will be represented.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Sandra Santomenno
Panelists:
Sarah McNair-Grove, Janet Silverman
Regulatory Roundtable Discussion
Each member of this panel of regulators will present a short overview of the rate regulatory climate and process in their state. “Hot Button” issues will be identified and discussed. A roundtable group discussion will follow, with audience participation strongly encouraged. The differences and the similarities in regulatory approach will be highlighted. In addition, panelists will comment on their experiences and field questions from the audience.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Sandra Santomenno
Panelists:
Kevin Conley, Charles Romberger
Ratemaking: Putting it All Together in an Enterprise Risk Management Framework
ERM envisions a holistic treatment of risk - both positive and negative - across an enterprise. Ratemaking and reserving are the traditional actuarial functions. How does the ratemaking silo relate to an insurer's enterprise-wide ERM process? How is ratemaking an ERM function? The panelists will address this and many more issues regarding ERM, risk and return analysis, and the ratemaking function.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Richard Bromley
Panelists:
Russell Bingham, Curtis Parker
Logic, Fallacies, and Paradoxes in Risk/Profit Loading in Ratemaking: A Socratic Dialouge
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.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Richard Bromley
Panelists:
Glenn Meyers, Richard Derrig, Leigh Halliwell
Risk and Capital Management
This session is intended to provide an historical review, overview, reflection on the issues, procedures, rationale, and methodologies in incorporating profit loads in the ratemaking process.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Richard Bromley
Panelists:
Russell Bingham, Richard Derrig
Implementation of Rates Based on Predicitve Modeling
Some of the topics covered will include time and resources required, data issues, blending the new model into the existing rate review and systems environments and testing. Because the model was initially rolled out in late 2005, some enhancements to the model and some post-implementation results will also be shared.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Richard Bromley
Panelists:
Donald Closter
California Automobile: Prop 103 Revisited
In July of 2006, new class plan regulations were implemented in California that are expected to have a significant impact on the personal auto insurance market. The panelists will describe the new regulations, present the pros and cons of the current California auto insurance regulations from the viewpoint of both the insurance industry and the consumer, and engage the audience for additional perspectives.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Richard Bromley
Panelists:
Shawna Ackerman, Mark Savage, Samuel Sorich
Determination of Statistically Indicated Territory Boundaries
Geographical risk classifications (i.e., fire protection classes, rating territories, and zones) have traditionally been defined in the U.S. based on physical surveys, engineering studies and data analyses. This session will discuss the application of spatial smoothing techniques to situations where the underlying claims experience in small geographic areas may not be fully credible.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Kris DeFrain
Panelists:
James Tanser
Hurricane Modeling
A relatively calm 2006 hurricane season provides an opportunity for reflection on steps that could enhance hurricane models. In this session, the panelists, who include a modeling expert from a reinsurance broker and a representative from one of the modeling firms, will discuss modeling from both a technical and a practical point of view. They will also discuss recent changes to the models, as well as the importance of data quality.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Kris DeFrain
Panelists:
David LaLonde
Price Governance II: Implementing Price Governance for Complex Lines
This session will focus on aspects of price governance beyond the technical price monitoring process from a perspective including the Reinsurance industry and the London Market. Especially for complex lines where the actuarial price by nature requires judgment, the final price is not based exclusively on the technical price indications determined using actuarial methods. Significant input from underwriters and marketing, as well as external factors such as markets and intermediaries is often factored into final pricing to account for factors such as operational and environmental changes.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Price Governance I: Price Monitoring for Standard and Middle Market Commercial Lines
This session, the first of two on price governance, will explore practical challenges and considerations in constructing and interpreting price monitors. There will also be a discussion on the implementation of price monitors, resulting benefits, pitfalls, and best practices from a company wide perspective to help practitioners in making the most of price monitoring reporting.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Rusty Kuehn
Panelists:
Brian Hughes
Managing General Agents: Managing for Success
Use of Managing General Agents (MGA's) has traditionally been a component of insurers underwriting processes. In some cases, the flexibility afforded by MGA's has enabled insurers to enter new markets and take advantage of opportunities more quickly than competitors. In other cases the business control delegated to MGA's can work to the detriment of the insurer. This session will explore the characteristics that make MGA business unique, which business characteristics to look for to increase the chance for success, and what actions on the part of insurers and actuaries support successful MGA generated books of business.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Rusty Kuehn
Panelists:
Cameron Vogt
Emerging and Latent Risks for Commercial Liability
This session will explore several major areas of continuing claim litigation including Asbestos and Environmental claims and emerging sources of latent claim emergence. With impacts that can extend decades after policies are written, insurers must exercise caution in providing and pricing coverages. Discussed will be current developments in Asbestos including an historical perspective, impacts on insurers, and tort reform efforts. While much of asbestos litigation involves coverage provided decades ago, new sources of latent and/or mass tort claims continue to emerge. The panel will also discuss the sources of more recently emerging claims, share insights into the possible scope of emergence, and implications for coverages and prices in the current market.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
David Na
Panelists:
Steven Lin
Key Drivers of Workers Compensation Costs—Economic Perspective
This session will focus on recent research by NCCI's economists that examines two primary drivers of workers compensation costs: (i) frequency and (ii) the aging of the workforce. Research will be presented that explains the decline in frequency over the past 50 years with a specific focus on the most recent decades. As the aging workforce is likely to result in somewhat offsetting pressures on workers compensation total costs-frequency is lower for older workers, but severity is greater-research will be presented that a) explains differences in severity between younger and older workers and b) estimates the likely impact that an aging workforce has on cost trends.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Robin Gillam
Panelists:
Tanya Restrpo
Perspectives on Pricing Large Accounts
This session will focus on some aspects of the design and pricing in the marketplace of large risk insurance programs. Hazard groups are one way to distinguish individual risks. The panel will discuss the recent changes to NCCI’s mapping of classes to hazard groups—with an emphasis on the impact of the new hazard groups on the ELFs. Some comparisons of the old and new hazard groups will be given as well a brief discussion of the methodology. In addition, basic principles and recent developments related to large account pricing, including discussion of credibility, loss limitation and pricing model application will also be discussed.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Gerard Palisi
Panelists:
Brian Ingle
Workers Compensation-State of the Market
An overview of the current state of the workers compensation line will be presented, including a review of financial results, recent trends, and a discussion of where the line might be headed.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Gerard Palisi
Panelists:
Jennifer Tomilin
Getting More From Your Data
As actuaries, we prefer to base our decisions on data. It follows that better data (e.g. more complete, more correct, more appropriate) should lead to better actuarial decisions. This session will begin with the case for data quality and then give tips and examples on how to pursue data quality.
Source:
2007 Ratemaking Seminar
Type:
concurrent
Moderators:
Gerard Palisi
Panelists:
Aleksey Popelyukhin, Gary Knoble, Peter Marotta