***The terrorist attack on America occurred in the morning
on the day the Limited Attendance Seminar on Asset and
Liability Management and Principles of Finance was to
begin. Due to the attack, the Limited Attendance Seminar
was canceled. The CAS will be providing refunds to the paid
registrants of the seminar just as soon as we can process
them. If you have questions, please contact Kathleen Dean
at the CAS Office at 703-276-3100, or via email at
kdean@casact.org.***
This seminar provides an opportunity for CAS members to become acquainted with both basic and advanced topics
in the areas of finance and financial risk management and their applications to the pricing and analysis of property
and casualty insurance.
The seminar will cover four topics in an integrated approach:
- Basics of Finance and its Applications to Insurance
The first session will cover basic financial concepts and
techniques, such as net present value, risk-return, capital asset pricing model, discounted cash flow analysis, internal
rate of return, portfolio management and option pricing. Applications of these concepts and techniques to insurance
are also presented.
-
Introduction to Financial Risk Management
The next session will expand on the introductory material by
providing an overview of financial risks, and an introduction to the tools available in the capital markets to address those
risks. The increased significance and volatility of interest rates, foreign exchange rates, and commodity prices are
demonstrated with historical statistics, and their potential impact on a firm's value and operations are discussed.
Participants are then introduced to the financial securities which have been developed to handle these risks—specifically,
forwards, futures, options, and swaps. Examples of how these instruments are used to hedge risks are provided.
-
Hands-On Session: Applications
Building upon the material provided in the first two sessions, participants have
the opportunity in these sessions to apply financial concepts and techniques to specific insurance-related problems
and cases.
-
Advanced Topics: New Developments
This final session provides a discussion of one or more advanced or
"cutting edge" topics relating to finance and insurance. Possible topics include stochastic interest rate
modeling, securitization, interest rate sensitivity of loss reserves measurements, integrated risk management solutions,
and others.
The course will be offered in a classroom setting on Tuesday from 1:00 p.m. to 5:00 p.m., with a break, then
continuing in the evening. Wednesday's session runs from 8:00 a.m. to 5:00 p.m. Dress is casual. Please bring a calculator or
laptop computer and be prepared to do practice problems. Attendees will acquire a greater depth of knowledge not
generally attainable in CAS hour-and-a-half sessions.
