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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.
No, Really, You Can Use DFA for Ratemaking, Too!
DFA has occasionally been advertised as an almost universal actuarial tool. While DFA may not solve all of your problems, it does have tremendous power and flexibility for a variety of ratemaking applications. The ability to model underwriting variables, market conditions, jurisdictional pressures, and future rate-setting decision structures are just a few of the elements that can be included in a DFA model used for pricing. This session will present possible ratemaking uses of DFA as well as case study examples of models used for some of these purposes.
Source:
2000 Dynamic Financial Analysis Seminar
Type:
concurrent
Panelists:
Thomas Hettinger, Robert Walling
Modeling Asset and Liability Cash Flows in a Dynamic Setting: Basic Tools and Risk Measures
Participants in this session will be introduced to the asset and liability models that are used in the construction of the typical DFA model. Models used to simulate future cash flows for both assets and liabilities will be reviewed and the economic measures of risk used to summarize the results of the analysis will be discussed. Specific topics that will be addressed include:
Building models that consistently estimate the impact of unexpected movements in interest rates on both assets and liabilities;
Identifying data requirements necessary to calibrate a DFA model based upon a company's specific asset and liability characteristics;
Introducing and explaining various economics measures of risk including duration, value-at-risk, tail value-at risk, expected policyholder deficit, etc.
Source:
2000 Dynamic Financial Analysis Seminar
Type:
concurrent
Panelists:
Richard Gorvett, James Moore
Securitization 101
Developed as an introductory session, this presentation will describe risk securitization transactions from conceptual and practical standpoints. Panelists will illustrate the mechanics of such transactions and examples of actual transactions.
Source:
2000 Fall SIS- Seminar on Catastrophe Issues
Type:
concurrent
Moderators:
John Welch
Panelists:
David Na, Kymn Astwood
Keywords:
risk securitization transactions from conceptual and practical standpoints
Catastrophe Charges for Ratemaking Purposes
Methods that include a provision for catastrophe losses in manual rates are the focus of this session. Panelists will discuss the use of modeled catastrophe losses in lieu of or in concert with nonmodeled catastrophe losses. A rate filer, a rating organization official, and a regulator will offer their perspectives.
Source:
2000 Fall SIS- Seminar on Catastrophe Issues
Type:
concurrent
Panelists:
Alice Gannon, Bruce Patton, Natalai Hughes
Keywords:
catastrophe losses, modeled catastrophe losses, nonmodeled catastrophe losses
Governmental Solutions for Earthquake Exposure
Learn the background of various governmental earthquake pools or reinsurance facilities, including the California Earthquake Authority, and selected international plans. Discussion of each plan will include its inception, plan capacity, and rate determination.
Source:
2000 Fall SIS- Seminar on Catastrophe Issues
Type:
concurrent
Panelists:
Larry Johnson, Shawna Ackerman, Douglas Collins
Keywords:
reinsurance facilities, inception, plan capacity, and rate determination
Federal Government vs. Private Sector
The federal government weighs in against the private sector in this session examining proposals for managing the industry catastrophe exposure. Private sector alternatives such as catastrophe reserves will be discussed as well as the proposed federal reinsurance legislation.
Source:
2000 Fall SIS- Seminar on Catastrophe Issues
Type:
concurrent
Panelists:
Kay Cleary, Gordon Hay, Ross Davidson
Keywords:
industry catastrophe exposure, catastrophe reserves, proposed federal reinsurance legislation
The Big One
How big could the "Big One" be? This session will provide a brief introduction to hurricane and earthquake dynamics, particularly those from some of the largest events in the United States, such as 1890's Galveston hurricane, 1992's Hurricane Andrew, and 1906's San Francisco earthquake. The session will also address other potentially large hurricane and earthquake events that could occur in the future and modeled loss estimates from these worst case scenarios.
Source:
2000 Fall SIS- Seminar on Catastrophe Issues
Type:
concurrent
Moderators:
John Kulik
Panelists:
Robert Curry, Nicholas Coch
Keywords:
hurricane and earthquake dynamics, modeled loss estimates
The Future of Mass Torts
In the world of mass torts, asbestos and pollution are the best known and clearly largest to date, with $29 billion and $30 billion (respectively) of incurred losses as of year-end 1998 for the U.S. insurance industry. Can another mass tort of comparable size arise? The authors argue that, while possible, such a large loss is unlikely. This is due to factors that are likely to be unique to asbestos (long latency, signature diseases, and union involvement), changes in risk management habits of U.S. corporations (large SIRs and deductibles, more retrorated policies, and changes in the U.S. legal system (greater use of class actions and ADR).
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Mass Torts
Evaluating Claims Costs Arising Out of Political Disorder and Civil Unrest
As insurers go global, they become more exposed to losses arising from political unrest and terrorist activity. Historically, while many of these exposures were excluded, there is increasing pressure to include them or provide alternative arrangements. Reinsurers are also taking a broader approach to coverages in this area.
This paper discusses coverage issues, ways of estimating PML's, as well as the review of underlying conditions, and capital requirements. This is done by considering the type of political unrest that is likely to arise in different territories and very large claims or claims of a catastrophic nature. The paper discusses techniques for evaluating both the frequency and severity of such claims.
The paper also refers to other financing techniques of the way the reinsurance programmes may be structured to be cost effective in this area. Some other practical issues are also covered.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Claims Costs
Considerations in the Calculation of Premium Deficiency Reserves (Under U.S. Accounting Rules)
Effective 2001, statutory accounting rules will change as a result of the NAIC's (National Association of Insurance Commissioners) "codification" project. One of these changes will be the creation of a new statutory reserve requirement, the required calculation of a "premium deficiency reserve". Although these reserves have been required under U.S. GAAP accounting rules for quite some time, there has been little said about them in the available actuarial literature, especially as to how they might be calculated. This paper addresses that gap, both as to current U.S. GAAP accounting rules and the new statutory accounting rules, including a discussion as to how the premium deficiency reserve differs under these two accounting systems.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Calculation of Premium Deficiency Reserves
Health Insurance Organization Reserving
Actuaries are called upon to estimate reserve liabilities for health maintenace organizations. This session will indentify and discuss
Sources of the liabilities
Issues that arise when estimating these liabilities
Data and the data organization utilized
Specific techniques utilized
Differences in both jargon and techniques between HMO reserving and traditional P&C reserving will also be highlighted.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Reserving, Health, liabilities
Loss Reserving Strategies for Commutations/Run-Off Situations
The development of reserves for use in commutations and run-off situations is not a straight-forward task. Many companies in this status suffer from a lack of realistic information on which to set their reserves. Some set their provisions based on attempts to benchmark the level of their reserves against other companies. Others establish provisions that are driven by their solvency or lack of solvency. Special consideration needs to be placed on the run-off strategy of the company, however.
The session will consider the establishment of reserves within a range of reasonable estimates, depending on the run-off strategy adopted. It will also consider how the actuary should approach dissolution calculations if the reserves are being liquidated.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Loss Reserving Strategies, Commutations/Run-Off
Unallocated Loss Adjustment Expense Reserving
In an era of extended price competition, the importance of accurately estimating reserves becomes even more important. One area that continues to be only briefly examined involves unallocated loss adjustment expenses. This session will present various methodologies to project ULAE reserves. The strengths and weaknesses of the traditional paid to paid method, the Johnson method which is based on claim reporting and closing patterns, and transaction-based methods will be explored.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Unallocated Loss Adjustment Expense Reserving
New ASB Standard of Actuarial Practice on Loss Reserve Opinions
The Actuarial Standards Board has developed this actuarial standard of practice after over six years of work, including three exposure drafts for comments and a public hearing. This standard of practice, effective October 15, 2000, will apply to actuaries providing P&C statements of actuarial opinion on loss reserves in the U.S. The panel will discuss the main provisions of the new standard and provide an open discussion on the issues involved in the implementation of this standard.
This standard is available for downloading on the American Academy's Web site, www.actuary.org under the Actuarial Standards Board, Actuarial Standard of Practice No. 36.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
ASB Standard of Actuarial Practice, Loss Reserve
Loss Reserves from the Actuarial, Accounting, and IRS Perspectives
The determination of loss reserves is, by its nature, an uncertain process. Various professionals involved with the financial reporting context will provide their perspectives regarding uncertainty. This session will provide the audience with the perspective of the actuary, the accountant, and the IRS on the treatment of uncertainty within loss reserves. The focus of this presentation will be on the various professional standards associated with loss reserving, such as those promulgated by the Financial Accounting Standards Board and the Actuarial Standards Board.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Loss Reserves from the Actuarial, Accounting, and IRS Perspectives
Mergers & Acquisitions and Reserving in These Situations
This session will focus on reserving in a mergers and acquisitions (M&A) environment. It will address practical approaches using real-life examples to deal with situations where available historical and other data is of a less than ideal quality for the purposes of estimating outstanding claims reserve requirements. This session will address why one needs and how one can establish margins in reserve estimates in such situations, differentiating between the position for vendors and purchasers.
The valuation of the future cash flows from existing and future business is necessary to value part of the goodwill of an insurance company. This session will cover both deterministic and stochastic models for valuation purposes as well as a consideration of the types of information required, the time horizon over which such analyses should be conducted, and other practical considerations.
Finally, available mechanisms to protect purchasers from potential adverse deterioration in structuring a deal will be explored (e.g. warranties, run-off reinsurance contracts, escrow accounts).
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Mergers & Acquisitions, reserving
DD&R/Extended Reserve
Death, disability, and retirement coverage (DD&R) is a common feature of claims-made medical malpractice policies. It provides free or highly discounted tail coverage in case the insured dies or discontinues practice due to disability or retirement. As of December 31, 1993, the NAIC has required that insurers establish a reserve recognizing this exposure, preferably as unearned premium. This reserve is separately identified in the Annual Statement Schedule P Interrogatories as the "Extended Loss and ALAE reserve."
Effective with the 1999 Annual Statement, the accompanying Statement of Actuarial Opinion required that an opinion be expressed as to the adequacy of the Extended Loss and Expense reserve. As such, actuaries expressing an opinion on companies writing Medical Malpractice coverage will now need to evaluate the adequacy of the company's DD&R reserve.
This session will discuss methodologies for estimating the reserves and premium loadings associated with DD&R coverage in light of the NAIC's guidelines. In particular, the use of non-traditional property/casualty techniques will be discussed including the use of level funding techniques, mortality, morbidity, and lapse ratios of the underlying insured population. Additionally, techniques for modeling long-term input assumptions will be presented.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Death, disability, and retirement coverage
Industry Reserve Adequacy-Beyond the Statement of Opinion
This session will provide the audience with an assessment of the industry's reserve adequacy and recent trends in reserving from the viewpoint of insurance financial analysts. The session will also explore the implications of unanticipated reserve development on credit ratings and equity valuations. First, the results of a 1999 reserve review of the top 50 insurance groups will be presented. Next, the impact of reserve development - with its implications for balance sheet strength and future earnings expectations - will be explored from the perspective of credit and equity analysts. Specific examples may be used to illustrate the impact of a reserve change on credit ratings and stock price valuations.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Reserve Adequacy
Reserving for Catastrophes
This session will identify the key data and assumptions for reserving known catastrophes of various lines of business and catastrophe perils. It will discuss the necessity and benefits of frequent communication between the reserving actuary and claims operations. The use of both internal company and vendor supplied stochastic models in catastrophe reserving will also be covered.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Reserving for Catastrophes, lines of business and catastrophe perils
Construction Defects
During the 70's and 80's, demand for housing in California exceeded supply by a commanding margin. Although subdivisions (and even suburbs) sprung up overnight, this demand could not be met. Not coincidentally, the demand for experienced contractors and laborers also began to exceed supply. Plaintiffs' attorneys now contend that these circumstances affected the construction's quality and craftsmanship, and as a result, have generated construction defect lawsuits. Recent court decisions (Montrose) have also served to increase the potential liability of contractors.
The property/casualty insurance industry has sustained significant losses related to the construction defect exposure in the past 3 to 4 years and there appears to be no end in sight. As a result, actuaries have been challenged to estimate the liability for this exposure with little or no background on the actual events that have led to the current situation.
In this session, panelists will examine the history and the characteristics of construction defects claims and how these influence actuarial reserving methods. Based on direct input from experienced claims personnel, the panelists will examine the pitfalls of applying standard actuarial methods and present modifications and alternatives that may be necessary for proper actuarial evaluation of the exposure. The panelists will also look at the current and potential future legal landscape associated with Construction Defects and the implications for both the reserving and pricing actuary.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Construction Defects
Medical Professional Liability
Much has been written and said about the softness of the medical professional liability market, with significant speculation on reserve levels especially for certain market segments.
This session will cover two aspects of this subject. First, we will cover the troubled area of long-term care facilities, discussing the recent explosion in the number and sizes of claims against these entities. Second, we will discuss the impact on hospital professional liability experience of changing patient expectations, of the financial condition of hospitals and of ancillary coverages, with particular attention to D&O and EPLI.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Medical Professional Liability
NAIC Codification of Statutory Accounting
The NAIC, through its Accounting Practices and Procedures Task Force, identifies, investigates and develops solutions to accounting problems. Their ultimate goal is to guide insurers in properly accounting for various aspects of their operations. To this end, the NAIC has recently completed their codification of statutory accounting principles. These principles are to take effect January 1, 2001.
The Committee on Property and Liability Financial Reporting (COPLFR), part of the American Academy's Casualty Practice Council, monitors activities regarding financial reporting related to property and liability risks. They also review proposals made by various organizations affecting the actuarial aspects of financial reporting and auditing issues related to property and liability risks. They evaluate property and liability insurance and self-insurance accounting issues. COPLFR is now preparing a document for distribution this fall that will provide guidance in compliance with these principles.
This panel will include a key regulatory participant in the NAIC's codification efforts and a representative of COPLFR. The panel will discuss implementation, compliance and key issues such as "best estimate", "discounting", and "premium deficiency reserves".
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Statutory Accounting, Accounting Practices
State Reserving Issues for Private Passenger Automobile
Recent court actions along with unique statute interpretations have affected the overall estimates of needed reserve levels for Private Passenger Automobile, a line generally considered to be very straight forward. This session will review some of these state specific issues that need to be considered.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Reserving Issues
Actuary and Risk Manager-A New Relationship
Historically, the relationship between actuaries and risk managers was somewhat limited to reserve, or accrual analysis. But times are changing. As the role of the risk manager is evolving from being an insurance buyer to acting as a corporate risk officer, the relationship between the actuary and the risk manager is also changing. This session will provide a case study of the evolution of a relationship, with emphasis on how actuaries have assisted risk managers in new and innovative ways.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
risk
Issues and Trends with Asbestos
Insurers and Reinsurers have been dealing with asbestos and environmental liabilities for some time now, with expectations that the reporting would begin to slow down. Suprisingly, environmental liabilities have shown some signs of stabilizing, while the asbestos liabilities have continued to show significant upward development. This panel will focus on the issues facing insurers (and their reinsurers) of asbestos defendants, complications to the modeling processes for reserving these exposures, issues with finite reinsurers of these liabilities, and new issues that arise because of tobacco.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Asbestos, environmental liabilities
