Property and Casualty Insurance: A Bad Business Structured for Low Profits?
The property and casualty industry has recently suffered huge losses arising from a long, soft market, the attack on the World Trade Center, and the collapse of Enron. Much of this poor experience in recent years can be attributed to the following structural weaknesses:

  • Not knowing the true cost of the products sold, which gives companies ample opportunity to justify low prices in order to meet revenue targets.
  • Exposure to events that were not contemplated in the underwriting and rating processes, such as terrorism.
  • An inability to apply credibility correctly to individual risk experience causes many policyholders to get too much credit for good experience (luck).

Speakers will address how the above items and other issues helped to cause the industry's poor results and what changes need to be made to restore the long-term profitability of the industry. Speakers will include industry executives and members of the investment community.

Moderator:
Jeffrey L. Dollinger, FCAS, National Accounts Lead Actuary, Employers Reinsurance Corporation

Panelists:
Todd R. Bault, FCAS, Analyst-Institutional Research, Sanford C. Bernstein & Co., Inc.
Jeffrey Cohen, Principal, MMC Capital



Workers Compensation Catastrophe Modeling
Prior to September 11, 2001, workers compensation catastrophe reinsurance was written and priced without a true appreciation for its exposure. Insurance companies, reinsurers, and even rating agencies are now in an aggressive pursuit of more appropriate modeling techniques to assess and manage their exposure to loss.

In this session, panelists will present an update of available modeling techniques and discuss how both reinsurer and primary company professionals are using them for pricing and exposure management.

Moderator:
Elizabeth E.L. Hansen, FCAS, Managing Director, Guy Carpenter Instrat.

Panelists:
Seth Ruff, FCAS, Assistant Vice President, Swiss Re Underwriters Agency
Bill Tuttle, Vice President of Product Marketing, Risk Management Solutions
Jay Guin, Ph.D., Vice President, Research and Modeling, Advanced Insurance Research



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