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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.
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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.
Considerations for Small Business Owners Policies
Policies for small business risks have unique eligibility and underwriting considerations. As the types of business written under business owners policies grows, these issues become more important. This panel will review recent changes in the ISO and independent business owners programs and discuss issues related to this coverage from the perspective of a product manager and an actuary.
Source:
2003 Ratemaking Seminar
Type:
concurrent
Moderators:
Regina Berens
Panelists:
Robert Walling, Joanne Reitz
Medical Malpractice Pricing
This panel will focus on the various unique ratemaking considerations associated with medical malpractice. The calculations of claims-made step factors, extended reporting period coverage, and provisions for death, disability, and retirement will be discussed, as well as the various approaches to risk classification and rating.
In addition, an update will be provided regarding current events in this volatile line of insurance. The factors causing recent industry trends resulting in the withdrawal and failure of various malpractice specialty carriers and the implications for the future will be discussed.
Source:
2003 Ratemaking Seminar
Type:
concurrent
Moderators:
Glenn Meyers
Panelists:
Linda Dembiec, Joseph Cerreta
Product Development
Product development is a role outside of the traditional pricing and loss reserving functions in which the actuary can make a substantial contribution. This session is designed to illustrate applications in personal and commercial lines.
Source:
2003 Ratemaking Seminar
Type:
concurrent
Moderators:
Glenn Meyers
Panelists:
Beth Fitzgerald, David McLaughry
Captive Formation-How and When
The captive insurance company concept is one that has certainly stood the test of time. Its application has grown to over 4,000 captive insurance companies worldwide, writing premium volume greater than a third of the total commercial insurance placement in the United States. This session will discuss a captive insurance company's role in meeting corporate financial and actuarial aspects of these specialized companies. The audience will be taken through a discussion of the current uses and merits of employing a captive insurance company including quantitative methods and issues, operational strategies, as well as tax and accounting issues.
Source:
2003 Ratemaking Seminar
Type:
concurrent
Moderators:
Glenn Meyers
Panelists:
Charles Woodman
Emerging Risk- What Now?
To date, asbestos leads the growing list of emerging liabilities, with current estimates of ultimate losses relating to U.S. exposure of at least $200 billion, with $55 billion-$70 billion expected to be provided by the U.S. insurance industry. While asbestos losses have been recognized as a significant issue for insurers since the 1980's, the litigation arena has changed dramatically in the last two years. There has been a marked increase in the number of plaintiff claim filings, settlement awards to individuals who are unimpaired, numerous bankruptcies of corporate defendants, and a growing list of peripheral defendants drawn into the fray.
While asbestos losses have surged, pollution estimates have stabilized. However, other types of liabilities have also emerged-each with the question "Is this the next asbestos?" Claims relating to breast implants, sexual misconduct, repetitive stress, HIV/AIDS, and Fen-Phen have been dealt with. Other exposures are developing, such as claims relating to lead, latex, tobacco, managed care, guns, and intellectual property.
Internet liability has a high degree of uncertainty that creates a natural demand from customers for coverage. However, difficulties in pricing and reserving for these unique exposures has caused insurers to shy away from accepting such exposure under traditional insurance policies and has made many insurers 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:
2003 Ratemaking Seminar
Type:
concurrent
Moderators:
Glenn Meyers
Panelists:
Barbara Ewing
Select State Workers Compensation Issues-Texas and Massachusetts
Recent studies have shown that Massachusetts' workers compensation medical costs are among the lowest in the country and Texas' costs are among the highest. The panel will discuss aspects of the workers compensation systems in these states that contribute to these differences.
Source:
2003 Ratemaking Seminar
Type:
concurrent
Moderators:
Glenn Meyers
Panelists:
Donald Bashline, Mark Phillips
Experience Rating Current Challenges
This session will review the recent performance of the Workers Compensation Experience Rating Plan used in NCCI states and the separate plan used by the California Rating Bureau. A brief overview of each plan, including any recent changes, will be provided. Performance results will be discussed in terms of changes over time, plan predictive accuracy, and equity across various distributions.
Source:
2003 Ratemaking Seminar
Type:
concurrent
Moderators:
Glenn Meyers
Panelists:
David Bellusci
Think Big, Start Small-Building a Data Warehouse With Limited Resources
This session reviews a structured data warehousing method and a visual planning tool to prioritize subject and business areas for cost-effective, manageable, and successful data warehouse implementation.
Source:
2003 Ratemaking Seminar
Type:
concurrent
Panelists:
Pat Saporito
The Indication-Is That Your Final Answer?
Inexperienced actuaries believe that their work is complete once the indication has been developed, but in reality this is just the first step. The indication is just that—an indication—not a final answer. The actuary must interpret the indication for its validity as a projection considering whether there are any anomalies in the data that distort the indication or if there there are any changes or planned changes in practice that would affect the indication. Then the actuary must evaluate the marketplace and competitive position, including impact on customer retention, agent reaction, and potential adverse selection. This gives an alternative view of how much rate an actuary could take. Finally, an actuary must evaluate means, other than base rate changes, to affect revenue that can address the indication, such as expense modifications and underwriting guidelines.
Once an approach is determined, an actuary can also stress test the planned action though scenario modeling or other methods. This panel will develop these concepts through the use of various examples and alternative approaches.
Source:
2003 Ratemaking Seminar
Type:
concurrent
Panelists:
Mark Homan, Roger Schultz
Introduction to Ratemaking Relativities
This session will present an overview of the concepts and techniques that are important in determining various relativities in insurance pricing. In addition to the general concepts, the session will present several examples of particular techniques that are used by actuaries in determining relativities.
Source:
2003 Ratemaking Seminar
Type:
concurrent
Panelists:
Patrick Woods, Margaret Brinkmann
Basic Techniques for an Overall Indication
The basic foundations of the ratemaking process will be covered in this session. Topics to be discussed will include data organization for premium and losses, data adjustments such as current leveling, loss development and trending, and the determination of the expense provision. Specific techniques applicable to the personal lines will be presented with emphasis on automobile and homeowners insurance. (Not intended for those preparing for the CAS Exam 5.)
Source:
2003 Ratemaking Seminar
Type:
concurrent
Moderators:
Samir Shah
Panelists:
Seth Myers
Introductory Data Management 101
Session panelists will address basic issues behind data management, such as privacy and confidentiality, actuarial standards concerning data quality, how to control the data, and the need to be concerned about data quality.
Source:
2003 Ratemaking Seminar
Type:
concurrent
Moderators:
Gregory Hayward
Panelists:
Alan Hapke, Holmes Gwynn
Proceedings Papers
CAS Proceedings Papers that have been recently approved by the Committee on Review of Papers, and discussions of previously published Proceedings Papers, will be presented at this meeting.
Source:
2003 Spring Meeting
Type:
Paper
ARIA Prize Paper- Discussion Call
This year's ARIA Prize paper, "Capital Allocation for Insurance Companies" by Stewart C. Myers and James A. Read Jr. (Journal of Risk and Insurance, December 2001) has stimulated a great deal of comment within the CAS-so much that, to deal with it in an orderly fashion, this special session has been scheduled to follow the presentation of the paper itself. All discussions will have been submitted beforehand and made available to the authors. After all discussions have been presented in open session, the authors are invited to give their own rejoinder. Orderly and reasoned discussion will increase understanding of this important topic.
Source:
2003 Spring Meeting
Type:
concurrent
Moderators:
Gregory Hayward
ARIA Prize Paper
"Capital Allocation for Insurance Companies"
By: Stewart C. Myers, MIT Sloan School of Management, The Brattle Group
James A. Read Jr., The Brattle Group
This study shows how option pricing methods can be used to allocate required capital (surplus) across lines of insurance. The capital allocations depend on the uncertainty of each line's losses, correlations with other lines' losses, and asset returns. The allocations depend on the marginal contribution of each line to default value-that is, to the present value of the insurance company's option to default. The authors show that marginal default values add up to the total default value for the company, so that the capital allocations are unique and not arbitrary. They therefore disagree with prior literature arguing that capital should not be allocated to lines of business or should be allocated uniformly. The study presents several examples based on standard option pricing methods. However, the "adding up" result justifying unique capital allocations holds for any joint probability distribution of losses and asset returns. The study concludes with implications for insurance pricing and regulation.
Source:
2003 Spring Meeting
Type:
Paper
Moderators:
Gregory Hayward
Panelists:
Stewart Myers
Keywords:
ARIA Prize, Capital Allocation
Volunteerism-The Essential Energy Driving the CAS
This session is for people who would like to volunteer but:
Think that all CAS volunteer work requires extensive time and travel commitments, or
Believe that you need to "know someone" to get on a Committee, or
Don't know how to get started.
The panel will include participants from the CAS Committee on Volunteer Resources and representatives of other CAS committees. You will find out about the resources available to active and potential volunteers and how to find an opportunity that interests you.
Source:
2003 Spring Meeting
Type:
concurrent
Moderators:
Gregory Hayward
Panelists:
Louise Francis, James Rowland, Carol Blomstrom
Risk-Based Capital Developments
One of the current initiatives of the International Association of Insurance Supervisors is to develop a global framework for risk-based capital for insurers. To support this initiative, the International Actuarial Association (IAA) has formed a Risk-Based Capital Solvency Structure Working Party to prepare a paper on the structure for a risk-based solvency capital system for insurance. The paper will:
describe the principles and methods involved in quantifying the total funds needed to provide a chosen level of confidence to policyholders and shareholders that the insurer's policyholder obligations will be met;
be specific and practical enough that its recommended principles and methods could be used as a foundation for a global risk-based solvency capital system for consideration by the IAIS; and
start from a coherent risk framework to identify risk measures that can be explicitly or implicitly used to measure the exposure to loss from risk and also any risk dependencies. The paper will also identify measures that are not effective in this regard.
This panel will discuss the direction of this effort, balancing its focus between practical and sophisticated methodologies, with greater weight on those methodologies with the greatest likelihood of practical implementation.
Source:
2003 Spring Meeting
Type:
concurrent
Moderators:
Thomas Gallagher
Panelists:
Robert Wolf
Pricing for Terrorism
With the passage of the Terrorism Risk Insurance Act, insurance companies must now offer terrorism coverage, with a separate premium coverage, in order to be covered by the federal reinsurance plan. This requirement creates a new challenge for actuaries as most pricing indications in the past either did not explicitly contemplate this risk, or assumed the risk load in the rates charged was sufficient to cover this risk.
Panelists will present their approach to developing rates for terrorism, and discuss how the insurance buyers have responded to their approaches.
Source:
2003 Spring Meeting
Type:
concurrent
Moderators:
James Kelly
Panelists:
George Burger, Jeffrey Eddinger
Pay as You Drive
Actuaries strive to develop rating systems that accurately match rates to the risk of loss. How much, where, and when a vehicle is used are important risk considerations for automobile insurance. Current rating systems for automobile insurance typically use broad risk classes for these usage characteristics. Recent advances in technology may make individual rating on the amount of driving, where the vehicle is driven, and when, more feasible. Recent environmental concerns have also prompted conjecture that if auto insurance were priced based on the use of the vehicle, people may alter their driving patterns to potentially improve urban air quality.
Source:
2003 Spring Meeting
Type:
concurrent
Moderators:
Sholom Feldblum
Panelists:
Patrick Crowe, Edmund Coe, Randall Guensler
Industry Reserve Adequacy
Over the last few months, many companies have reported significant inadequacies in their loss reserves. While many of these deficiencies were recognized for long-tail liability lines, reinsurance, and mass torts, some industry-wide reserve adequacy analyses suggest that the problem is much bigger and broader than what has been recognized.
Now that the industry is in a hard market, will insurers find a way to restore the quality of their balance sheets? Are the industry-wide deficiencies that have been suggested true?
The panel will present their views on how industry-wide analyses have been developed and discuss the limitations and challenges of dealing with aggregate industry level data.
Source:
2003 Spring Meeting
Type:
concurrent
Moderators:
David Mohrman
Panelists:
John Kollar, William Wilt
An Overview of Florida's Workers Compensation Market
In the last decade, workers compensation premiums dropped to the point in which formerly self-insured risks purchased guarantee cost policies. This trend has recently been changing, however.
This session will provide an overview of the Florida workers compensation market from the perspective of the insurance department actuary, an insurance broker, and an NCCI actuary.
Source:
2003 Spring Meeting
Type:
concurrent
Moderators:
David Mohrman
Panelists:
Anthony DiDonato, James Watford, Tom Stewart
Finite Reinsurance Discussion and Demonstration
Property/casualty insurers have used aggregate finite covers with increasing frequency since the early 1990's. Predominant causes leading to these cessions have been providing buyer security for mergers and acquisitions, increasing the likelihood of adverse loss reserve runoff, and the recent soft market. This session explores two typical aggregate reinsurance transactions: stop loss covers and adverse reserve development covers. Presentations will show both the reinsurer's and cedant's viewpoint for the transactions, the basic assumptions and data typically used, an overview of the pricing analysis, and how contracts are monitored for future reserve assessments.
Source:
2003 Spring Meeting
Type:
concurrent
Moderators:
Peter Marotta
Panelists:
John Levy, Douglas Carlone
Financial Pricing and Performance Measurement
Sholom Feldblum and Neeza Thandi have written a series of ten papers on financial pricing models and EVA performance measurement that will appear in issues of the CAS Forum in 2003. The presentation explains return on capital pricing-the implied equity flows to and from investors (also called free cash flow or distributable earnings), the effects of federal income taxes, statutory accounting rules, and company cash flows on the indicated rates, and the measurement of profitability from both an IRR and an NPV perspective.
Source:
2003 Spring Meeting
Type:
concurrent
Moderators:
Joseph Petrelli
Panelists:
Neeza Thandi
Do Exclusive Remedies Work?
Automobile no-fault and workers compensation insurance were designed to provide compensation to those injured in auto accidents or in the workplace regardless of fault. These systems accomplished this by setting up conditions under which the injured party waived the right to pursue tort action in exchange for an exclusive compensation mechanism. Periodically (and repeatedly) poor results in workers compensation and the recent, heavily publicized alleged occurrence of fraud in New York personal injury claims have raised the question-do exclusive remedies such as these work?
The panel will discuss the concept behind exclusive remedies and provide opinion and commentary on the efficacy of these systems.
Source:
2003 Spring Meeting
Type:
concurrent
Moderators:
William Scheel
Panelists:
Richard Hofmann, Anne Kelly, Donald Palmer
Extreme Events
Most actuarial literature deals with estimating expected values and reasonable ranges around them. However, events in the last few years have shown that perhaps not enough attention has been paid to the possibility of extreme events. The "impossible" has become reality. By definition, extreme events are rare but they are also unusually large. While terrorism issues have garnered trade press headlines for some time, natural hazards and other catastrophes also pose substantial challenges to insurers and reinsurers. The burden of catastrophic losses frequently falls on reinsurers. The panel will discuss a variety of extreme events and their implications on insurer and reinsurer financial strength. The panel will focus on more recent developments in these areas.
Source:
2003 Spring Meeting
Type:
concurrent
Moderators:
Alex Krutov
Panelists:
David Lalonde, Thomas Weidman
