G1: P&C Industry Results—The View From a Risk Management Perspective
With a seemingly endless drumbeat of bad news plaguing the property/casualty insurance industry, a look back at the results of the past few years might provide a good template for discussion of the topic at hand—risk and capital management. The World Trade Center attacks, the reemergence of asbestos as a significant issue for companies, the dramatic decline in equity prices, and a spate of major corporate scandals and the resultant lawsuits—all set against the backdrop of a prolonged soft market—have created an environment in which mere survival has become a goal of many companies.

In the opening session of this year's Risk and Capital Management Seminar, we will take a look back at recent results, and, with the awareness that hindsight is almost always 20/20, ask a few key questions:

  • What could the industry have done differently to prepare itself for these events?
  • What might we do differently to avoid these types of problems in the future?
  • What specific approaches, from a risk and capital management viewpoint, would have been useful?
  • How could the actuarial profession have responded differently in order to help avoid or at least mitigate these events?

We will hear from four panelists, each with a different perspective on the industry. To set the stage, our first panelist will provide us with a summary of recent industry financial results. Our panelists will then discuss these questions from the perspective of the regulator, the rating agency, and the company manager, before wrapping up with a question-and-answer session.

Panelists:
John J. Kollar, Vice President, ISO
Chester J. Szczepanski, Chief Actuary, Pennsylvania Insurance Department
John Iten, Director of Financial Services Ratings, North American Insurance, Standard & Poor's
Donald F. Mango, Chief Risk Officer, American Re-Insurance Company

G2: The State of DFA Modeling Today
Over the last ten years, DFA modeling has gained broad recognition as a tool that can enhance corporate decision making for property/casualty companies, yet its acceptance is far from universal. Some argue that insurance managements today are focused on other underwriting and operational issues that are not ideally addressed through financial modeling.

The panel members will present an overall assessment of the state of DFA modeling in today's hard market environment, and will offer their insights into the role that DFA may or may not play in the future.

Moderator:
Joan Lamm-Tenant, Senior Vice President, GeneralCologne Re/GeneralCologne Re Capital Consultants

Panelists:
Kurt J. Johnson, Senior Vice President, Guy Carpenter & Co., Inc.
Christopher M. Suchar, Principal, DFA Capital Management, Inc.
Ronald J. Zaleski, Executive Vice President and Chief Actuary, Selective Insurance Company