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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.
CALL-3 · "Ratemaking for Captives and Alternative Market Vehicles"
The Author provides an introduction to captives and some of the issues encountered in ratemaking for them. The author describes various capture structures and domiciles, and discusses the reasons for forming these entities, as well as the many issues encountered in estimating rates. Actuaries who need to gain a quick understanding of what captives are and how to approach ratemaking for them will find this paper helpful.
Source:
2005 Ratemaking Seminar
Type:
Paper
Moderators:
John Stenmark
Keywords:
Ratemaking
CALL-2 · "Pitfalls in Evaluating Proposed Tort Reforms"
The Author explores ten problems actuaries should consider when analyzing changes to a state's tort law. Actuaries who file medical liability rates have encountered requirements from states to reflect changes in tort law in their rate filings. Company management also needs to gain an appreciation for the potential changes in future losses due to these changes in law. The author gives the reader important tips and advice for approaching this problem. Regulators and actuaries involved in lines affected by tort reform will gain insight into the difficulties associated with the many changes we've seen recently.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
John Stenmark
CALL-2 · "The Effect of Changing Exposure Levels on Calendar Year Loss Trends"
The Author demonstrates an underlying problem in using calendar year data to estimate loss trends. He demonstrates that as exposure levels change, calendar year loss trends could be distorted due to the mismatch of losses and exposures. The author then proceeds to demonstrate a method for overcoming this problem, by calculating adjusted loss trends that pair past exposures with the losses they produced.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Clive Keatinge
Panelists:
Alex Laurie
CALL-1 · "Generalized Minimum Bias Models"
In their paper the authors show that all the multiplicative minimum bias models along with commonly used Generalized Linear Modes are special cases of GMBM.
The authors present the following advantages of their approach:
* There is no assumption of a specific form of distribution, increasing application appropriateness and model-selection flexibility.
* It improves accuracy and goodness of fit for classification rates.
* It is easy to understand and does not require advanced statistical knowledge.
Anyone who regularly employs minimum bias methods or Generalized Linear Models, or who wants to gain further understanding of them, will find this paper helpful and interesting.
Source:
2005 Ratemaking Seminar
Type:
Paper
Moderators:
Russell Bingham
Panelists:
Jim Weiss, Kelleen Arquette
Keywords:
Generalized Minimum Bias
Policyholder Retention and Its Impact on Pricing
Policyholder retention and its affect on profitability have long been overlooked in actuarial literature. As insurance draws closer to other financial services industries, the emphasis those markets place on retention, lifetime customer value, and the economic value of the current client base are getting increased attention. This session will present possible measures of retention, a discussion of how different market segments may respond to rate changes, and an approach to modeling prospective retentions by market segment.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Trent Vaughn
Panelists:
Claudine Modlin, Robert Walling, Cheng-Sheng Wu, Jun Yan, Xiaoying Liang, Zhigang Xie
Credibility- a Primer on Practical Applications
Credibility is and continues to be one of the cornerstones of the ratemaking process. In this session, credibility will be reviewed in the context of ratemaking concepts. Both classical and Bühlmann models will be described. The session will include a review of variables affecting credibility, credibility formulas, and practical techniques for applying and increasing credibility.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Trent Vaughn
Panelists:
Paul Brehm, Matt Frazier, Dan Bankson, Dominic Weber
From Enterprise Risk Management to Ratemaking
The four risk quadrants of enterprise risk management are defined as hazard, financial, operational, and strategic risks. As true enterprise risk incorporates a holistic view of risk from all of the divisions of an entire insurance group, how then does a holistic treatment of all risks inherent in a corporation drill down to the ratemaking silo. The panelists will address this and many more issues with regards to the relationships of enterprise risk management, corresponding risk and return analysis, and the ultimate ratemaking processes.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Michael Kerner
Panelists:
Russell Bingham, Kevin Dickson, Jeremy Benson, James Barber
Risk and Return: Considerations of the Benefits and Costs of Reinsurance
A textbook function of reinsurance is to reduce the need for capital. Now capital costs money and reinsurance costs money. The risk management problem faced by insurers is to find the right combination of capital and reinsurance that minimize the sum of the cost of capital and the cost reinsurance. This session will illustrate a practical approach to this problem. In addition this session will highlight some of corporate culture issues that arise when this approach is implemented.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Michael Kerner
Panelists:
Glenn Meyers, Kranthi Nekkalapu, Debashish Banerjee
Risk and Return Analysis in Ratemaking: Are we Still Debating?
Continuing on prior years' debates, issues discussed will include the best use of risk metrics, compare and contracts the different methodologies and philosophies of “capital appropriation to line” techniques, how to best address correlation and parameter risk considerations, and a host of other topics. Rest assured, the discussions will be lively and entertaining as 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. There have been heated arguments in the past. In continuing efforts of the CAS Research and Development Committees to optimize research efforts commensurate with the CAS's Centennial Goal, may we achieve an ultimate goal in forming another research working party? Those interested in being a member of a developing research working party or who would like to express corresponding ideas and views should attend this session.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Michael Kerner
Panelists:
Donald Mango, Glenn Meyers, Russell Bingham, Richard Phillips, Erin Bellott, Mohamad Hindawi, Chuck McClenahan
Current Research on Risk and Return Methodologies in Ratemaking
The panelists will discuss and critique current research to data with regards to estimating the cost of capital for the purposes of reflecting it in the profit and contingency load in ratemaking. Among the topics discussed are the Cummings/Phillips paper utilizing the Fama/French three factor model and various methodologies in allocating the cost of capital to line of business. Among the considerations are comparing the techniques of Myers/Read, Merton/Perold, and Capital Consumption vs. Capital Allocation models.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Michael Kerner
Panelists:
Donald Mango, Richard Phillips
Finite Reinsurance and Risk Transfer Issues
Finite reinsurance (often being referred to as structured or alternative reinsurance) has been in the headlines frequently of late. This session will discuss what finite reinsurance is, the evolution of applicable accounting standards, current legal developments, risk transfer tests and accounting practices, and finite reinsurance's place in the current environment.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Michael Kerner
Panelists:
William Wilt, David Clark, Christian Wirtz, Lisa Walsh, William Kelty, Norris Clark
Catastrophe Modeling from the Reinsurance Point of View
As catastrophe models have become more advanced and accepted throughout the property/casualty industry, they have become invaluable in the pricing and structuring of catastrophe reinsurance agreements. At the same time, the introduction of new and more difficult man-made exposures into the equation has presented additional hurdles to pricing these contracts. This session will provide an overview of catastrophe models, their evolution, and state of the art. Panelists will also look at how these models are applied in pricing both natural and man-made exposures in reinsurance contracts.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
James Votta
Panelists:
James Maher, James Matusiak
What makes a good rate filing?
What makes a good rate filing? It depends on whom you ask. Now is your opportunity to ask several individuals with very different opinions: a regulator, a bureau actuary responsible for state filings, a consultant with a similar responsibility and a company actuary.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
James Votta
Panelists:
Timothy Wisecarver, Theodore Zubulake
Actuary as an Expert Witness
The possibility that an actuary will need to testify in an administrative setting is something every actuary should be aware of. This session will discuss the various circumstances where an actuary may be called upon to provide expert testimony. In addition, there will be a real "mock" hearing where actual testimony from a rate hearing will be reenacted to demonstrate the type of questions and responses actuaries get and receive while "on the stand." Finally, the expert witnesses and other panelists will comment on their experiences and field questions from the audience.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Pierre Saddik
Panelists:
Michael Miller, Chuck McClenahan, R. Strickland, Marvin Spivey
How to Determine 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.
The panel will demonstrate:
1. the mechanics of spatial smoothing techniques that take into account the loss experience "in the neighborhood;"
2. the determination of the optimum number of territories;
3. the use of publicly available, non-claims data, when insurance loss data are not available or are too "thin;"
4. actual analyses conducted on auto and homeowners data from Texas and North Carolina.
5. actual results of spatial smoothing techniques from various world markets, including a discussion of the volume of data required.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Jean Roy
Panelists:
Michael Miller, Duncan Anderson
Incorporating Reinsurance Costs and Risk Loads into Personal Lines Rates
Although much has been written on how to properly determine reinsurance rates, relatively little literature exists on how the primary insurer, once it pays that rate, should incorporate the cost of reinsurance in its rate level indication. In the first part of this session, the presenter will discuss the two basic, theoretically identical approaches of including the cost of reinsurance in the indication, review the pros and cons of each, and provide an example of the preferred approach, the "Net Cost of Reinsurance" method.
An alternative to reinsurance is the use of internal capital. However, if an insurer chooses to use internal capital, an adequate risk-adjusted return must be earned on that capital. In many instances, insurers have found it difficult to convince regulators to allow actuarially sound risk loads in property lines. This has had unintended consequences, increasing the size of residual markets and the use of expensive reinsurance. The second half of this session will examine how regulators may be able to improve the availability and afford ability of property insurance by creating incentives for insurers to tap internal capital to support Homeowners writings.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Jean Roy
Panelists:
Rade Musulin, Eric Huls
Quantifying Impact of Non-Modeled Catastrophes
Focusing on non-hurricane and non-earthquake catastrophes, session panelists will tackle the problem of how to account for non-modeled events with long, but difficult to determine, return periods. A number of pricing techniques will be examined, and advantages and disadvantages of various ways to adjust for such events will be considered.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Hirohisa Mikogami
Panelists:
Eric Huls, Michael Devine
Rating Plan Design-Where the Rubber meets the Road in Ratemaking
The Statement of Principles on Ratemaking give guidance as to the estimation of costs associated with the transfer of risk. But what happens once these rates are out our door and on the street? This panel discussion will offer an operational view of rating plan design. An understanding of the operational aspects of implementing certain rating plan components, such as verification and maintenance, is essential to developing sound, effective rating plans. Additionally, the panel will discuss potential sources of data from the operational side that can complement our ratemaking data.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Hirohisa Mikogami
Panelists:
Jeffrey Thompson, Ellen Berning
Update on SUV Auto Insurance Costs/Other Make/Model Symbol Issues
The increase in size and types of vehicles on the road today coupled with the market leaders' desires for greater granularity in price points has resulted in a renewed focus in the necessity to price individual vehicles accurately - for both liability and physical damage coverages. The panel will present a discussion of the current pricing issues related to rating individual makes and model of automobiles including a discussion of the various "symbol rating" programs in use by insurers in the U.S. and in Canada.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Hirohisa Mikogami
Panelists:
Kim Hazelbaker
State-Specific Issues in Personal Lines
Personal lines issues in Florida and Massachusetts and the lessons they impart are the subjects of this session. Panelists will discuss how the four hurricanes that hit Florida in 2004 affected the property insurance market, and what other states or regions can learn regarding insuring property in catastrophe-prone areas. Panelists will also discuss the Massachusetts private passenger market, which has been in the process of reform for the last two years.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Hirohisa Mikogami
Panelists:
Katharine Barnes, Cara Blank, Frederick Strauss
The Rest of the Story: Applications and Practical Considerations of GLM & Predictive Modeling
Predictive modeling, including methods such as Generalized Linear Modeling, has become extremely popular with actuaries and researchers in insurance companies. However, applying predictive modeling in insurance does not come without its challenges. This session will focus briefly on common insurance applications and practical modeling issues, such as data preparation, factor categorization, and implementation. This session will also focus on applying predictive modeling to other areas, such as alternative approaches to modeling claim counts, extreme value modeling, and the use of geo-statistics.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Steven Visner
Panelists:
Matthew Flynn, A. Phinney, Don Brockmeier
The Matrix Inverted-A Primer in GLM Theory
The use of generalized linear models (GLMs) is gaining momentum within the North American property/casualty insurance industry and is starting to replace traditional one-way actuarial analyses. Previous CAS presentations have given an overview of GLMs and discussed applications in areas such as ratemaking, underwriting, and retention analysis. This session is designed to provide the actuary with a primer in the theory of GLMs-a practitioner's "need to know." 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, and model diagnostics.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Steven Visner
Panelists:
Claudine Modlin, Serhat Guven
Price Monitors: Survival Strategies for a Soft Market
Insurers managing operations in a changing market have come to rely increasingly on quantitative measures of price change on both the new and renewal books of business. The advent of Sarbanes-Oxley has also influenced many insurers to increase their internal controls regarding the tracking of price changes over time as an important part of reserving for recent accident years. This session 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:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Steven Visner
Panelists:
John Ferraro
Pricing and Market Considerations: Financial Lines
This session will focus on market conditions and considerations for financial lines of insurance. Conditions in the US have strained the environment for insurers of financial lines such as Surety and Executive Protection. Major bankruptcies and corporate scandals have led to claims activity at levels greater than historically envisioned. This panel will discuss the market response to these changing conditions, and the resulting outlook for insurers of financial lines. Mr. Perler will speak from the perspective of senior management for Surety lines. Mr. Fidlow will speak from the perspective of actuarial management for Executive Protection lines. Both speakers will also address the role of actuaries in managing these respective lines of business.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Panelists:
Ben Fidlow, Dennis Perler
Pricing Programs, Excess, and Surplus Lines
The importance of alternative mechanisms to underwriting property and casualty insurance has increased as market cycles have impacted the traditional markets. This session will explore two of these mechanisms, excess and surplus lines and programs. Pricing Actuaries working in companies underwriting this business often function in close alignment with other disciplines such as underwriting and marketing. The speakers represent companies underwriting business in each of these segments. Differences in business characteristics, regulation, marketing, and types and classes of business underwritten will be discussed. Also covered will be the approaches pricing actuaries use to address the unique challenges these differences create as well as changes in these markets over the past few years.
Source:
2005 Ratemaking Seminar
Type:
concurrent
Moderators:
Steven Visner
Panelists:
Letitia Saylor
