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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.
The Insured's Perspective- Risk Retention as an Investment Decision
This session will focus on the commercial insurance buyer and their decisions on risk financing as a function of the cost of risk financing (e.g., rates) and corresponding appetite for retaining risk. In particular, the emphasis will consider the goal of creating and enhancing shareholder value in the insurance decision process, given the hard commercial insurance market.
An insurance broker, consultant, and risk manager will describe several case studies in methodologies attempting to optimize a corporation's risk management strategies given considerations, among others, of the firm's cost of capital and market premium levels.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Patricia Saporito
Panelists:
Mark Ames, Scott Sanderson
What Are We Debating About Now? (Panel Discussion)
As a follow up on last year's debate on the essential elements of analytical models used to gauge and measure risk and return, this session will pay particular attention to the corresponding actuarial considerations for reflecting fair rates of return in ratemaking.
Issues discussed will include risk metrics, capital allocation/non-allocation, parameter risk, correlation, and a host of other considerations. Rest assured, there will be no consensus. This session, as last year's, will be a fun one geared toward Socratic dialogue (debated and maybe heated arguments) among the panelists and with the audience. Don't miss this one!
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Patricia Saporito
Panelists:
Glenn Meyers, Russell Bingham, Richard Derrig
Risk and Return Considerations in Ratemaking
How does one's method reflect the cost of capital as that term is used in the principles of ratemaking? How does one enhance shareholder value, stay competitive, and comply with both regulatory constraints and the Statement of Principles of Ratemaking, all at the same time? Advocates of various methodologies will address these and other such challenges in this session devoted to risk and return considerations in ratemaking. The panel consists of contributors to the book, Actuarial Considerations Regarding Risk and Return in Property-Casualty Insurance Pricing.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Patricia Saporito
Panelists:
Russell Bingham
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. The panel will discuss a sophisticated, yet simple to understand and explain, statistical technique for determining accurate geographical risk classification boundaries.
The panel will demonstrate:
how to define geographical boundaries using actual analyses previously conducted on auto and homeowners data from Texas and North Carolina;
the determination of the optimum number of territories within a state;
the year-to-year stability and the predictive power of the indicated geographical boundaries;
the application of credibility factors to loss indices "in the neighborhood";
the accuracy of the geographical boundaries when insurance data are not available, or too thin, thereby requiring the analysis be applied to publicly available, non-claims data; and
how to use the technique to eliminate the need and expense of fire protection classes.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Panelists:
Michael Miller, Erik Donahue
Geographical Spatial Analysis in Personal Lines Territorial Ratemaking
Geographical area is one of the main drivers of personal lines claims experience, yet territorial definitions and relativities can vary significantly between insurers. The problem with territory as a rating factor is that an insurer may have few policies in any one region, making it difficult to assess reliably the risk associated with that region.
This session will discuss using spatial smoothing techniques to form new territory definitions. Spatial smoothing techniques are based on the assumption that, in the absence of credible experience in any one given area, that area will exhibit riskiness similar to that of neighboring areas. The discussion will cover the mechanics of spatial smoothing (including standardization for other rating variables with GLMs, credibility, possible smoothing algorithms), the inclusion of geodemographic data, and taking into account the competitive situation. It will also show the results of a real analysis undertaken using this method in a European market and will discuss practical implementation issues.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Patricia Saporito
Panelists:
Duncan Anderson
Catastrophe Load? Risk Load? Who's Carrying the Load?
Who is carrying the load? Actuarial and modeling practices exist that determine the catastrophe load and that "appropriately" spread that catastrophe load. But what about risk loads and reinsurer margins? Who's paying for these? Explicit recognition of these costs hasn't been as widely recognized or accepted. Expert panelists will demonstrate techniques for developing estimated measures of these costs, including these costs in the rates. Their discussion will explore the issue of "risk load" from several perspectives: actuarial, economic/market, and regulatory views. Panelists will also explore some of the implications for the marketplace when these perspectives differ.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Joseph Palmer
Panelists:
Rade Musulin, David Appel
Properly Pricing the Catastrophe Exposure
Focusing on non-hurricane and non-earthquake catastrophes, session panelists will tackle the problem of how to account for 1 in 300-year and 1 in 500-year events. Panelists will analyze problems and come up with potential solutions.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Joseph Palmer
Panelists:
Sara Drexler, Michael Devine
Identity Theft
This session will define identity theft and show how a new insurance product is produced. Further, the sources and the information reviewed in order to define the product and price will be discussed. In addition, the current state of the product will be reviewed along with a review in retrospect of the pricing assumptions initially made.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Joseph Palmer
Panelists:
Charles Orlowicz, Kimberly Ward
Update on SUV Auto Insurance Costs/Other Make/Model Symbol Issues
The popularity of SUVs over the past several years has resulted in a marked shift in the average size and weight of vehicles on the road. Recent studies may point to increasing liability costs associated with SUVs. This panel will present a discussion of the current pricing issues related to SUVs—for both liability and physical damage—including related factors such as type of driver associated with SUVs. The panel will also discuss the various "symbol rating" programs in use by insurers and discuss their impact on automobile insurance rates.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Joseph Palmer
Panelists:
Kim Hazelbaker, Henning Norup
Incorporating Catastrophe Models in Property Ratemaking
Discover how the output from simulation models is used in property insurance lines. The treatment of hurricanes and earthquakes will be reviewed from the perspectives of advisory organizations and companies with independent rate filings. The panelists will present applications at both the statewide and the territorial levels.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Joseph Palmer
Panelists:
David Border
The Matrix Inverted-A Primer in GLM Theory and Practical Issues
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, etc. Building upon this foundation, the session will discuss typical model forms, the effect of different assumptions and also model diagnostics. The session will then move beyond theory to discuss practical modeling issues such as data preparation and factor categorization, as well as implementation issues such as comparison to existing rates and minimizing market disruptions.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
M. Parsons
Panelists:
Roosevelt Mosley
Alternatives to Credit Scoring in Insurance
Credit scoring has been one of the insurance industry's most successful innovations in the past decade. Many agree that credit is a powerful and meaningful predictor of insurance losses. However, the use of credit scoring in insurance has been strongly criticized by regulators and consumer advocates. Furthermore, the now widespread use of credit scoring has blunted the competitive advantage it has traditionally offered insurers. And so insurers are in search of ways to enhance or even replace the credit scores woven into their underwriting and rating strategies. This talk will use the data mining paradigm to describe a more general concept of an insurance "score," and will discuss how traditional credit scores are a special case of this more general concept. Panelists will discuss possible data sources available to build non-credit or mixed credit/non-credit scoring models, the uses of such models, and the advantages these models have over traditional insurance scores. The discussion will conclude with ways in which insurance scoring is different from, yet complementary to, GLM-based insurance rating projects.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
M. Koken
Panelists:
Cheng-Sheng Wu, James Guszcza
Predictive Power of External Data in Pricing: Credit and Beyond
Using external data can often improve the ratemaking process. It allows a more accurate segmentation of risks and speeds up the quotation process by reducing the amount of information that has to be requested at the point of sale. Although now relatively common, using consumer credit information is one such example of the predictive power of external data.
Session panelists will present an overview of an industry-sponsored study of credit-based insurance scores. Panelists will also discuss the types of external data used for pricing personal lines products in various international markets, including geodemographic, geophysical, vehicle, and banking data. The relative predictive power of different types of external data, including example output from real GLM studies, will be examined.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
M. Koken
Panelists:
Duncan Anderson, Richard Smith
Medical Professional Liability Ratemaking
The General Session will have addressed the roots of the current crisis. This line has been subject to cycles in claims inflation, reserving and pricing. This panel will address how ratemaking techniques have tried to adapt to these cycles. Potential issues for discussion include: Will we be able to determine more rapidly than in the past if the rate of claims inflation starts to moderate? How can we measure the impact of the various tort reform measures? Have changes in the practice of medicine changed how actuaries approach ratemaking.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
M. Koken
Panelists:
Kenneth Quintilian, Christopher Tait, Heather Yow
Construction Defect Claims and Contractors General Liability
Construction Defect Claims and Contractors General Liability. It's a hard market for contractors general liability. Few insurance companies are offering coverage and coverage is restricted. Much of the concern stems from fears of construction defect losses. Many contractors and managing general agents are considering self-insurance. This session will discuss construction defect claims, including important legal decisions, statutes of limitations, exclusionary endorsements, reform legislation, and trends. We will discuss the treatment of construction defect claims in pricing contractors general liability insurance. In addition, we will discuss the transition of mold claims from property policies to contractors general liability policies.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Carl Ashenbrenner
Panelists:
Kurt Hines, Gary Grasman
Surety- Insurance or Assurance?
Surety bonds have been in the news more and more since the collapse of Enron and the bankruptcy of Kmart. Various unique ratemaking considerations associated with surety will be the focus of this panel. Discussion will include contract surety and commercial surety exposures, individual risk considerations, and key features of the three-party surety bond. The panel will talk about unique cash flows associated with performance bond claims, reinsurance issues unique to surety, and how surety bonds became famous as part of the Enron situation.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Carl Ashenbrenner
Whose Line Is It Anyway? Multi-Peril Crop and Travel Insurance
Few actuaries get the opportunity for exposure to two unique insurance products: multi-peril crop and travel insurance. While the ratemaking method for each of these two lines addresses elements not common to other property/casualty coverages, all actuaries can learn from the approaches used to overcome these distinctive challenges. Actuaries can also apply what they learn to dilemmas they face in other lines. This panel will begin with an introductory discussion of coverages, distribution systems, reinsurance considerations, and pricing issues. It will also explore how ratemaking methods address the challenges facing the actuary who prices multi-peril crop and travel insurance.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Carl Ashenbrenner
Panelists:
Joseph Tritz, Thomas Worth
Considerations for Small Business Owners Policies
Polices for small business risks have unique eligibility and underwriting considerations. As the types of business written under business owners policies increase, these issues become more important. Insurers are examining the fundamentals of underwriting small business risks and moving towards a more efficient approach to underwriting these risks. The concept of scoring finds application in more and more industries and certainly in the property/casualty insurance business. This panel will focus on those fundamentals as well as various approaches modeling the use of credit scores and other available risk characteristics.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Carl Ashenbrenner
Panelists:
Robert Walling
Product Development
In a role outside of the traditional pricing and loss reserving functions, an actuary can make a substantial contribution to product development. This session is designed to illustrate applications in personal and commercial lines.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Carl Ashenbrenner
Panelists:
David McLaughry
Emerging Risks-Internet Liability
Internet liability has a high degree of uncertainty that creates a natural demand for coverage from customers. However, difficulties in pricing and reserving for these unique exposures have caused insurers to shy away from accepting such exposure under traditional insurance policies; many insurers are hesitant to write such risks. The high customer demand and absence of a readily available market for such liabilities has created opportunities for the few willing to take such risks.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Carl Ashenbrenner
Asbestos Liabilities- The Continuing Saga
Increased claim filings, awards to unimpaired plaintiffs, bankruptcies, and notable insurer reserve additions are just some of the key issues that have added to the litigious environment of asbestos liabilities in the past few years. This session will discuss the latest developments in asbestos litigation and federal and state legislative reform efforts, as well as rating agency views of the situation.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Justin VanOpdorp
Latest Developments in Retrospective Rating
In addition to covering practical aspects of retrospective rating, the session will discuss topics such as current work related to the NCCI Retrospective Rating Plan, filing a computerized model as an alternative to the paper Table M, and having a more refined treatment of multi-year programs. Knowledge of advanced theory will not be required although a general background in retrospective rating will be assumed.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Justin VanOpdorp
Panelists:
Jill Petker, Ira Robbin
Terrorism Ratemaking Methods for Workers Compensation
After the passage of the Terrorism Risk Insurance Act of 2002 (TRIA), NCCI filed terrorism provisions for workers compensation on behalf of its membership in 36 states. NCCI's filing relied heavily on modeling. Panelists will discuss the NCCI methodology as well as other alternatives to pricing for terrorism. Panelists will consider the pros and cons of alternative exposure bases such as the number of employees or standard premium, as well as how a company might vary prices to reflect an account's terrorism risk factors. The American Academy of Actuaries paper, "Ratemaking Issues Related to TRIA," will also be discussed.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Michael Schmitz
Panelists:
William Miller, Mary Gaillard
Current Issues
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:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Gavin Blair
Selected State Issues
Overviews of recent pricing filings and supporting analyses in the states of New York, Pennsylvania, and Delaware will be discussed. Topics to be addressed are loss development, trend, effects of benefit levels on pricing, derivation of classification relativities, and experience rating plan performance.
Source:
2004 Ratemaking Seminar
Type:
concurrent
Moderators:
Stuart Mathewson
Panelists:
Martin Heagen
