“Basic Ratemaking” by Geoff Werner and Claudine Modlin is Released
The Casualty Actuarial Society has released “Basic Ratemaking” as a comprehensive resource for practicing actuaries and actuarial candidates.
The CAS Executive Council first approved “Basic Ratemaking” for use on the 2010 CAS Exam 5 syllabus.
According to the authors, “This text introduces fundamental ratemaking principles supported by consistent terminology and straightforward examples. We focused on quantitative analysis as well as practical considerations in the ratemaking process.”
The authors expressed gratitude to Catherine Taylor for her feedback and guidance and appreciation to the other members of the task force led by Ms. Taylor that worked with the authors to review the drafts.
The CAS Board of Directors initiated the project to provide a consolidated text on the topic of basic ratemaking and another on reserving. In October 2006, the Executive Council created the Task Force on Developing Education Material to engage consultants to prepare an entire set of materials for the ratemaking and reserving portions of current CAS Exams 5 and 6. The Board approved EMB America, LLC for the ratemaking text and KPMG, LLP for the reserving text. The reserving text, “Estimating Unpaid Claims Using Basic Techniques” by Jacqueline Friedland, was released in June 2009.
Both the ratemaking and reserving texts were written to be useful to general insurance (property-casualty) actuaries internationally as a response to the CAS Centennial Goal that the CAS would be “recognized globally as a leading resource in educating casualty actuaries.” For this reason, the CAS is making the publications available free of charge on its Web site.
About the Authors
Mr. Werner and Ms. Modlin are both Fellows of the CAS and were the principal authors at EMB America, LLC, with significant contributions by many of their EMB colleagues. Mr. Werner has more than 20 years experience in the property and casualty insurance industry. He is a managing director with EMB America, LLC, and previously worked as an executive for a large U.S. insurer. He has been an active CAS volunteer for many years, including leadership positions on exam-related committees. Ms Modlin is a senior consultant with EMB America and has enjoyed an 18-year career in the industry. Prior to consulting, she held actuarial positions for a major multi-national insurer and a large U.S. insurer. Both she and Mr. Werner are frequent presenters at CAS events and have each published various articles on ratemaking topics.
An errata was posted on 9 April 2010.