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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.
Credit History: Impact on Expected Personal Lines Loss Experience
A process of both education and debate is occurring with regard to the use of personal credit history in the underwriting or rating of personal lines insurance policies. The insurance industry, the NAIC, and other interested third parties are all involved in educating both themselves and each other on such issues as correlation, multivariate correlation, causality and the social or actuarial appropriateness of using this tool in either underwriting or rating. The key issues under debate are the existence (or non-existence) of a correlation between past credit history and expected loss levels (and which variables are responsible for that correlation) and the establishment of causal links for such correlation. Both are addressed in this paper, although only the former can be statistically analyzed. Causality will be addressed on an informational (and necessarily subjective) basis. The key questions that are addressed in this paper are:
Is there a correlation between credit history and expected personal lines loss performance? <Br>
If so, which specific criteria within a credit file are indicative of abnormal loss performance (favorable or unfavorable)? <br>
If this correlation exists, is it merely a proxy, i.e., is the correlation actually due to other characteristics (which may already be underwritten for or against, or rated for)? <br>
As a corollary to 3), are there dependencies between the impact of credit history on loss performance and other policyholder characteristics or rating variables? <br>
What are the ramifications of utilizing such data for underwriting and/or ratemaking?
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Philip Miller
The Contest - Parts I & II
At the 1999 Seminar on Ratemaking, the cas introduced a ratemaking contest which challenged entrants to arrive at the best solution to a real-life auto insurance ratemaking problem. Contest entries were judged based upon the application of generally accepted actuarial principles and standards as well as the structure of the accompanying actuarial report. The contest commenced in April 1999 and judging of entries took place during the summer. After judging the contest entries, a paper was written that described the ratemaking problem and highlighed the approaches contestants took in deriving a solution to the problem. The second part of this session provides contest entrants the opportunity to highlight the approaches they have taken.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Panelists:
Jerome Tuttle, Thomas Ghezzi, Michael Miller, Klayton Southwood, Stephen Talley
Professional Liability Ratemaking
This session will focus on the unique ratemaking considerations of both medical and non-medical professional liability coverages. The calculation of rates for claims made, extended reporting and prior acts coverages will be addressed, along with a discussion of the unique considerations involved in establishing classification plans. Practical examples will be provided.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Irene Bass
Panelists:
Denise Olson, Jeffrey Donaldson
Emerging Risks
Newly emerging liabilities (e.g., pollution, Y2K, internet liability) and contract structures (e.g., dual triggers such as a casualty events that must occur concurrently with financial misfortune, multi-year policies) have presented unique challenges for actuaries. On the one hand, difficulties in pricing and reserving for these unique exposures have made many insurers hesitant to write such risks. On the other hand, the high degree of uncertainty that surrounds such liabilities creates a natural demand for coverage from customers. 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. The panel will discuss how actuaries approach the pricing of newly emerging liabilities and contract structures. Issues that will be addressed include:
How is the absence of historical insurance data handled?
To what extent are models used?
How are they developed?
How are risk margins affected?
How is adverse economic or financial performance included in a rating analysis?
What are the accounting and jurisdictional issues involved with emerging risks?
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Irene Bass
Panelists:
Edward Dew
Commercial Package Pricing for Small Commercial Accounts
This session, not part of the introductory ratemaking track, will discuss the multiperil insurance product as it specifically relates to smaller commercial accounts. Often, the small business does not generate enough premium to qualify for the individual rating plans that larger risks enjoy. The panel will discuss how large carriers approach their smaller commercial accounts.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Richard Woll
Panelists:
Kathleen McMonigle, Paul Martin
Pricing Large Insureds
Actuaries are faced with several challenges when pricing large accounts. Oftentimes, the account will have significant data to use in pricing. However, the data are not usually fully credible and may not be reflective of future exposure. Therefore, in pricing large accounts, it is necessary to weigh individual client data with industry data after appropriate adjustment. This session will discuss various approaches to blending account-specific data with industry data.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Richard Woll
Panelists:
Christopher Claus, Stewart Gleason
Product Development
One role outside of the traditional pricing and loss reserving functions in which the actuary can make substantial contribution is product development. This session is designed to illustrate applications in personal and commercial lines.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Richard Woll
Panelists:
Beth Fitzgerald, Jerry Rapp
Regulatory Update
This session will feature presentations from representatives of the insurance regulatory organization in each of three states that should be well known to pricing actuaries. Current events/initiatives, recent rate and other department decisions, market overviews, and general filings guidance are among the topics to be discussed. Audience participation in the form of questions is welcome.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Panelists:
Philip Presley, Kevin McCarty, Robert MacNicholl
Actuary as an Expert Witness
The regulatory environment today virtually guarantees that actuaries will serve as expert witnesses in administrative hearings concerning rate filings. Other actuaries may be called upon to be experts in civil litigation on a wide variety of actuarial subjects. This session will explore the challenges for actuaries as expert witnesses from two perspectives: the actuary who serves as the witness and the attorney who prepares or cross-examines them.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Richard Woll
Panelists:
Norma Brettell
Automobile Ratemaking in the U.S. and in the U.K.
The U.K. is the one market outside of North America where U.S. actuaries feel most at home. The actuarial training is the most similar to our own, the business culture is quite similar, and we speak the same language. Underneath the surface similarities there are many differences to explore, such as the role of rate regulation and product design. How do these differences affect the way that ratemaking is performed? This session is intended to give the CAS actuary a view into how different actuarial work can be and to challenge our own ideas of actuarial fairness as well.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Jerry Rapp
Panelists:
Michael Brockman, Robert Downer
Modeling Aspects of Classification in Insurance
The panel will discuss refinements in territorial classification development and the integration of certain classification factors with others. Statistical considerations in designing classification rating plans will also be discussed.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Jerry Rapp
Panelists:
Mark Scully, Patrick Woods
The Use of Credit History and Other Demographic Data in Underwriting
Public and private databases have made more demographic data available to insurance companies. Research has shown that while some of this data may appear to have no causal relationship to insured losses, it may have significant predictive value. As a result, many insurance companies are building and refining their underwriting models to incorporate these statistics. Credit history, in particular, has drawn significant attention by the naic. A panelist will present research regarding the use of credit history and other demographic data in the underwriting process. The panelists will also discuss the use of credit history and other electronic data being used to underwrite and market personal insurance products.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Panelists:
Eddy Lo, Alan Hines
Sport Utility Vehicles and Auto Insurance Costs
The popularity of SUVs over the past several years has resulted in a marked shift in the 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 - both liability and physical damage - including related factors such as the type of driver associated with SUVs. The hldi crash test video will also be shown.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Joan Klucarich
Panelists:
Kim Hazelbaker
International Ratemaking Applications of DFA
Dynamic financial analysis can be used in a variety of ratemaking applications. Regulatory environment, degree of competition, and the underwriting cycle are components that DFA models should consider. This panel will compare and contrast methodologies, approaches, and considerations used in dfa applications relevant to both the United States and Europe. In addition, one of the panelists will present a case study on optimum approaches by displaying the results of a dfa analysis that is based on varying assumptions on underwriting strategies, competition, target markets, and data availability.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Chuck Emma
Panelists:
Chris Daykin, John Birkenhead
Advanced Discounted Cash Flow Models
This session is the second of a two-part session discussing methods to determine fair rates of return and fair premiums via the use of discounted cash flow models. The audience is expected to understand the basic concepts discussed in FIN-29. This session will include discussions on the similarities and differences between the Net Present Value models (i.e., Myers-Cohn) and the internal Rate of Return (IRR) models, specifically including scenarios under which the respective models yield equivalent results. One of the panelists will provide an update on research activities related to parameter estimation.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Chuck Emma
Panelists:
Russell Bingham, Richard Derrig, Philip Borba
Introduction to Discounted Cash Flow Models
This session is the first of a two-part session discussing methods to determine fair rates of return and fair premiums via the use of discounted cash flow models. In this session the basics of Net Present Value models, principally the Myers-Cohn model and internal Rate of Return (IRR) models will be presented. Along with the assumptions and structure of the models, the discussion will include the associated perspectives of both the policyholder and the shareholder.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Chuck Emma
Panelists:
Russell Bingham, Philip Borba
Profit and Contingencies - An international Perspective
This panel will provide a forum for active audience participation and will include an international panel discussion of how insurance profit should be measured and reflected in rates. Should profit measurement depend on the capital structure of the firm or should it be based on a "return on sales" perspective? How is profit measured in Europe as compared to the U.S.? What is the best way to measure the cost of capital in the sense of the principles of ratemaking? The underwriting cycle is one of the most important factors affecting underwriting profit results. What causes the underwriting cycle? Are mechanisms that cause cycles in Europe similar to those in the U.S.? These and more issues will be explored during the course of the session. Two of the panelists are co-authors of the newly issued textbook Actuarial Considerations Regarding Risk and Return in Property-Casualty Insurance Pricing, produced under the auspices of the Casualty Actuarial Society Committee on Valuation and Financial Analysis. Another panelist will provide a European perspective.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Chuck Emma
Panelists:
Benedetto Conti, Russell Bingham
Reinsurance Pricing Applications of DFA
The ability of dynamic financial analysis models to simulate thousands of possible events has quickly made reinsurance a natural area for DFA use. Evaluating the overall impact to both the ceding company and the reinsurer of varying coverage types, pricing structures, and retentions can be accomplished using a DFA model. This session will provide the perspectives of two leading reinsurers on the various uses of DFA.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Chuck Emma
Panelists:
Daniel Isaac, Joseph Wallen
Capital Allocation and Profit
This session will discuss how dynamic financial analysis has been used by actuaries to analyze traditional capital allocation and profitability concerns. Capital allocation techniques will be discussed by line and by company applications and an evaluation of return metrics. Profitability will be twofold; dfa will address profitability measurement and a means of analyzing the profit provision in rates.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
John Roberston
Panelists:
Manuel Almagro, Kevin Olsen
The Incredible Shrinking Residual Market
Rate adequacy and other factors have contributed to unusually low residual market shares in both the automobile and workers compensation insurance plans. This panel will discuss the myriad issues surrounding ratemaking in the present environment of shrinking residual markets and the challenges facing the actuary as he or she works on balancing the needs of the regulatory environment and the insurance industry.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Peter James
Panelists:
Thomas Daley
Securitization
This panel will provide an overview of insurance securitizations which have been completed to date. The discussion will include the structuring of transactions, delivering the product to investment markets, costs involved, distinction between security based on actual losses versus an index, basis risk considerations, emerging accounting treatment, the creation of a rateable security from other assets, how the bonds are priced, and future opportunities.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Peter James
Panelists:
Stephen Philbrick, Charles Kerner
International Reinsurance Pricing and Challenges
This panel will separately explore the current challenges in the property and casualty reinsurance marketplaces. Lack of quality information, challenging regulatory and economic environments, recent catastrophic events, and continuing challenging market conditions are common areas of concern. This session will discuss various approaches to gathering suitable information for pricing, illustrating their inherent uncertainty, and applying them to various international markets and changing situations.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Sara Schlenker
Panelists:
Simon Sheaf, Richard Clinton
Introduction to Experience Rating + Introduction to Exposure Rating
These linked panels will examine the data required and the methods that are commonly employed in pricing excess of loss reinsurance treaties. Using a game-like setting, these panelists will illustrate what reinsurers do in the "real" world. An introduction to experience and exposure rating will be shown by utilizing the same set of data to provide continuity and a reconciliation of the methods.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Randall Brubaker
Panelists:
Henry Newman, Jerome Tuttle
Data for Modeling
Modeling is a useful technique to help manage the business of insurance. Components of models include equations to mimic interactions and dependencies of variables of interest, and data used to estimate the parameters in the equations. This session will focus on the data used in dfa and reinsurance models. For these models, the panelists will answer questions such as:
What types of data are needed for these models?
What are possible sources of that data?
How sensitive are models to the data used?
What data issues should be examined in determining the suitability of a vended model for your intended use?
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Randall Brubaker
Panelists:
Nolan Asch, Kevin Dickson
Management of Catastrophe Risk Information
Efficient and accurate collection and storage of catastrophe risk information is necessary for a company to assess and manage its catastrophe exposure. This panel will offer insights regarding what companies should and should not do to enable themselves to assess risk and develop risk management alternatives in a cost efficient manner. The impact of changing technology on what is practical with regard to risk assessment will also be discussed.
Source:
2000 Ratemaking Seminar
Type:
concurrent
Moderators:
Karen Terry
Panelists:
Chris Zumbrum, Mark Nichols
