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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.
Actuarial Evaluation of Premium Liabilities
Most actuarial literature on reserving focus on claims liabilities. Actuaries are increasingly being asked to expand their scope of review to include premium liabilities. Canadian actuaries have been evaluating premium liabilities for several years while U.S. actuaries have only recently been required to opine on the adequacy of the unearned premiums for policies with terms exceeding twelve months. This session will provide guidelines on the evaluation of premium liabilities and related items as well as present an actuarial approach to evaluate the equity in the unearned premium, the unearned premium deficiency, and the deferred policy acquisition expenses.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Premium Liabilities
Fair Value of Insurance Liabilities - CAS White Paper
This session will discuss the recently issued CAS white paper on this topic (expected to be issued this summer). It will begin with a definition of the term "fair value", a summary of initiatives undertaken by various standard-setting bodies, and a brief introduction to the white paper. Each section of the paper will then be presented in summary form. Sections include fair value estimation methods, alternatives to fair value, implementation issues, presentation issues (e.g. what would an income statement look like under fair value accounting), and a critique as to the value of "fair value" financial statements. The discussion will end with a dialog as to the profession's readiness to implement such a system, and what may be needed to prepare the profession for a "fair value" world.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Insurance Liabilities
Loss Portfolio Transfers
Loss Portfolio Transfer (LPT) is a product utilized by an insurance company (or a corporation) to remove and transfer existing liabilities to a third-party. This session will discuss the various reasons for parties to enter into this transaction and will describe the process underlying this transaction, with a focus on the evaluation of the loss reserve liabilities. In addition, we will explore a critical issue associated with these transactions, namely accounting and tax considerations for both parties.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Loss Portfolio Transfer, liabilities
Estimating Provision for Bad Debt
Actuaries are required to opine on the effect of ceded reserves and their collectibility upon net reserve estimates. This session will focus on the determination of the materiality of uncollectible reinsurance upon reserve opinions. There will be a discussion of the calculation of Schedule F penalties and a presentation of an alternative method to estimate uncollectible reinsurance provisions.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
ceded reserves, net reserve estimates
Reserving in Other Countries
This session provides an introduction to the considerations and concerns involved in reserving in countries other than US and Canada. The importance of this topic has increased with the insurance industry becoming more global in nature.
Specific topics include local accounting rules and their effect on the reserving process, data availability, industry benchmarks, and the Lloyds market. Primary emphasis will be on reserving in the United Kingdom, Japan, and Mexico. No advance preperation required.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Reserving
Introduction to the Alternative Risk Transfer Market
Alternative Risk Transfer (ART) is a concept representing a broader approach to risk than traditionally exhibited by the conventional insurance/reinsurance market and involving products and combinations of products from the conventional insurance/reinsurance market, banking, capital markets and corporate markets.
This session provides an overview of drivers behind the growth in ART as well as the characteristics of ART when compared to conventional insurance/reinsurance. Some of the ART programs to be discussed are
Multi-Line Programs, which incorporate traditional property/casualty lines and financial exposures (i.e., foreign exchange, interest rate, and commodity risks)
Securitization
Credit Enhancement
Project Finance
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Alternative Risk Transfer
Risk Premium Project
The question of the appropriate adjustment for risk in valuing liabilities and in pricing insurance transactions has a long history. Actuaries have developed methods of loading losses for risk based upon the uncertainty in the process and parameters for estimating the ultimate liability.
Financial economists have used portfolio theory and CAPM developed in the 50's and 60's to value all assets, including insurance. The Risk Premium Project (RPP) of the Committee on the Theory of Risk has reviewed developments in both fields over the last ten years and finds common ground and methodological improvements from both sides. This session will review the RPP Report (www.aib.org/rpp/rppsearch.asp) and discuss the current state of the art in developing risk premia.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Risk
Regression Models and Loss Reserving
Casualty actuaries have begun to turn from deterministic methods to stochastic models. Deterministic reserving methods, such as the chain-ladder, the Bornhuetter-Ferguson, and the Cape-Cod, have been to varying degrees either blended with or replaced with stochastic models, especially with regression models. This session will show how stochastic reserving relates to and moves beyond deterministic reserving, the progress made to date in applying regression models to loss reserving, and what progress remains to be made. Simple examples will illustrate the theory and will suggest how to apply it to loss reserving. Recommended preparation is to read the panelist's "Response" paper (PCAS LXXXVI) and its references.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Regression Models and Loss Reserving, deterministic methods to stochastic models
Reserving and Pricing for Several Excess Layers
Examination of run-off triangles for different excess-of-loss type layers reveals that the changes in trends (in the accident, payment, or development period directions) often occur in the same places for each of the layers as in the triangle for losses from the ground up. Sizes of the trends and trend changes can vary from layer to layer, however. As might be expected, even after adjusting for the trends, the corresponding values in different layers are generally correlated with each other. Often the correlation is large. When reserving or pricing for reinsurance layers, these features should be taken into account.
The panelists will describe how to implement reserving and pricing for multiple layers with changes in trends in the same periods, correlations between layers, and possibly equal trends or trend changes across layers.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Reserving, Pricing for Several Excess Layers
Determining Reserve Ranges and the Variability of Loss Reserves
There is often a high degree of variability in loss and loss expense reserve estimates, particularly with excess of loss reinsurance or long-tail primary lines of business. Estimates may be as simple as a set of discrete values for low, best and high estimates, or they may involve a complex family of loss distributions. Estimates that include the determination of the level of confidence an actuary places in a particular reserve level have received increased scrutiny by both regulatory authorities and rating agencies. This panel addresses some common techniques used to analyze the variability of reserves and their underlying assumptions and hence validity. One technique in particular involves the study of individual claim detail and the use of detailed statistical models for the steps of the claim disposal process as a basis for simulating the distribution of aggregate unpaid amounts.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Reserve Ranges, Variability of Loss Reserves
Workers Compensation Reserving-How do you Slice the Cake?
Segregating data into credible, homogenous components is one of the most important decisions an actuary has to make. This session explores various alternatives for workers compensation such as:
Medical benefits versus indemnity benefits
Medical only versus medical-on-indemnity
Vocational rehabilitation versus other indemnity benefits
Analyzing claims by injury type (e.g., occupational disease, death, permanent total, permanent partial, temporary total)
Treatment of loss adjustment expenses
Large deductible policies versus small or no deductible policies
Segmentation by industry or class
Splitting out large anomalous accounts from other policyholders
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Workers Compensation Reservin
DFA and Capital Allocation
This panel will explore the use of DFA to help analyze capital allocation issues. A company requires capital to absorb the adverse results associated with: 1) current and future writings, 2) past writings (loss reserves), and 3) asset fluctuations.
Capital allocated to a particular line of business or other marketing segment will depend on these three areas, as well as the correlation between the segment and the rest of the company.
The calculation of the simultaneous variability of these elements can get complex, and a simulation (DFA) approach may be the best way to allocate capital to market segments reflecting all of the major sources of risk.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
DFA and Capital Allocation
DFA Loss Reserve Variability
This panel will discuss several approaches to loss reserve modeling within a DFA modeling framework. Loss reserve variability due to inflation, tort reform, and other factors will be evaluated using several different models. The session aims to bring out the fundamental differences among DFA models with respect to loss reserving issues at a detailed level and as they relate to a total company financial concern.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
DFA Loss Reserve Variability
Introduction to Reinsurance Reserving
This session provides a basic understanding of loss reserving principals, considerations, and techniques as applied to assumed reinsurance. While reinsurance reserving principles are generally similar to primary reserving, their application is often more difficult and involves special considerations.
The panelists will cover the following topics: reinsurance contract types, grouping of data for loss development, specific reserving techniques, and complications in their application.
Not intended for experienced reinsurance actuaries but assumes a working knowledge of primary reserving techniques. No advance preparation required.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Reinsurance Reserving
Intermediate Track IV-Case Study
This session is a workshop that covers the concepts discussed in the preceding intermediate sessions. Audience participation is encouraged in analyzing and discussing the cases, and proposing techniques to be applied in estimating the loss reserves. Various techniques will be discussed. A calculator will be helpful. No advance preparation required.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
Workshop
Keywords:
loss reserves
Intermediate Track III-Techniques
This session is a continuation of Intermediate Track II - Techniques. The instructors will explore methods to detect changes in mix of business, claim closing patterns, and case reserve adequacy. Adjustments of loss reserve methodologies to account for each situation will also be discussed. Not intended for members of the Casualty Actuarial Society. No advance preparation required.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
claim closing patterns, and case reserve adequacy, Adjustments of loss reserve methodologies
Intermediate Track II-Techniques
This session provides an introduction to intermediate level reserving techniques. The techniques covered include the Bornhuetter-Ferguson method, the average hindsight method, and the average incremental paid method. Not intended for members of the Casualty Actuarial Society. No advance preparation required.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Bornhuetter-Ferguson method
Intermediate Track I-Considerations in Evaluating Reserves
This session provides a survey of the most frequent causes of inaccurate or misleading analyses of reserves. Included will be discussions of limitations and the predictive value of closed claim methods, the use of calendar year ratios of ALAE to losses to estimate ALAE reserves, the failure to include tail factors, the treatment of large or exceptional losses, and use of loss ratios to set reserves when rates have been discounted or are significantly changing. Not intended for members of the Casualty Actuarial Society. No advance preparation required.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Evaluating Reserves
Case Study
This session is a workshop that covers the concepts discussed in the preceding basic track sessions. This session will allow the participants to experience some common loss reserve setting situations. Various solution techniques will be discussed, with active audience participation encouraged. A calculator would be helpful. Intended for those with limited knowledge of actuarial concepts. No advance preparation required.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
Workshop
Keywords:
loss reserve
Basic Track III-Techniques
This continuation of Basic Track II will discuss additional topics of a fundamental nature. Topics of discussion will include: (1) expected loss ratio techniques, (2) estimation of loss adjustment expense reserves, and (3) information available in Schedule P. Intended for those with limited knowledge of actuarial concepts. No advance preparation required.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
expected loss ratio techniques, estimation of loss adjustment expense reserves
Basic Track II-Techniques
As a continuation of Basic Track I, this session will provide additional topics of loss reserving fundamentals. Discussion material will include: (1) comparison of the results of the various techniques introduced in Basic Track I, (2) monitoring and testing the results for reasonableness, (3) data analysis and sources of distortion, and (4) introduction to tail factors. Intended for those with limited knowledge of actuarial concepts. No advance preparation required.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
loss reserving fundamentals
Basic Track I-Considerations in Evaluating Reserves
This session will cover the principles, considerations, and types of data that are essential to setting and analyzing loss reserves. An introduction to fundamental reserving techniques will be provided. This session will discuss the construction of development triangles, and the process underlying the loss development method. Intended for those with limited knowledge of actuarial concepts. No advance preparation required.
Source:
2000 Casualty Loss Reserve Seminar (CLRS)
Type:
concurrent
Keywords:
Reserves
Premium Trend
Premium trend has been an integral part of the ratemaking process. The Statement of Principles Regarding Property and Casualty Insurance Ratemaking lists it in its enumeration of considerations for trends. However, current models for estimating premium trend have been limited to an exploration of changes in the base exposure. Limiting the premium trend to simply reflect changes in the base exposure can produce a biased indication, as internal loss trends implicitly reflect distribution shifts underlying the rating plan, while the exposure based premium trend fails to incorporate such changes. A methodology for determining premium trend that expands beyond the traditional methods is discussed and the theory underlying the proposed methodology is developed.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
David Schofield
The Measurement of Additive and Multiplicative Rating Plan Changes
Insurance companies strive to distinguish themselves from their competitors. One way of doing so is to refine the rating plan so that it more precisely estimates the appropriate rate for each risk. This refinement process adds complexity to the rating plan and in turn makes the measurement of changes to the individual components of the rating plan (the classifications) more difficult. In this paper, several different types of rating plans are analyzed.
The rating plans range from simple plans, with either multiplicative or additive classification factors, to more complex rating plans, with mixtures of each of these types of classification factors. Methods are developed for measuring the effect of changes to classification factors on the overall rate.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Kathy Pechan
Multiple Peril Crop Insurance: Ratemaking Considerations for a Politically Sensitive Product
Multiple Peril Crop Insurance (MPCI) is a unique public/private market insurance product. This paper provides an introduction to the MPCI ratemaking process, as well as a discussion of some of the political and economic forces affecting the program. The paper provides a description of the coverage offered under the program and an overview of the ratemaking methodology. Specific challenges relating to the catastrophic nature of the coverage and the geographical influences on loss exposure are discussed. The paper discusses alternatives to current ratemaking techniques, including spatial smoothing and spatial credibility methods. The paper also comments on the unique aspects of the product and ratemaking process, including the role of the federal government in supporting the program; the high correlation of experience among exposures; and the use of econometric models and non-insurance data in validating experience.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
James Monaghan
Panelists:
Richard Lord, Frank Schnapp, Thomas Zacharias, James Driscoll
