Jing, Lebens, and Lowe Awarded 2009 Variance Prize
The Variance Editorial Board has selected the winning paper published in Variance in 2009. The Variance Prize has been awarded to Yi Jing, Joseph R. Lebens, and Stephen P. Lowe for “Claim Reserving: Performance Testing and the Control Cycle.” The paper describes how to construct sound performance tests within the reserving control cycle. Performance testing is an integral part of the actuarial control cycle associated with the loss reserving process. Performance testing of an actuarial projection method can provide empirical evidence as to the inherent level of estimation error associated with its forecasts. Testing of alternative methods provides formal assurance that the actuary is using the best methods for the given circumstance, and also provides insight into the appropriate weight to give to the indications produced by each method.
Yi Jing, FCAS, MAAA, is an actuarial consultant with Towers Perrin in the firm’s Hartford office. Since joining the firm in 2001, Ms. Jing has been focusing on reviewing reserves for primary and reinsurance business, performing economic capital evaluation, assisting clients in evaluating and optimizing reinsurance purchases. Ms. Jing holds a B.S. in management science from University of Science & Technology in China and a M.S. in statistics from University of Illinois at Urbana-Champaign.
Joseph R. Lebens, FCAS, MAAA, is a principal with the Tillinghast Business of Towers Perrin in Hartford, CT. He leads the company’s ERM initiative for P&C insurers in North America as well as global ERM product development. His works includes assisting companies in determining capital requirements, allocating capital to business segment, addressing rating agency issues, conducting asset allocation projects, and evaluating reinsurance programs.
Stephen P. Lowe, FCAS, is the Managing Director of Towers Perrin’s global property/casualty consulting practice. With over 25 years of consulting experience, Steve has participated in a wide range of assignments, advising both insurance company and corporate clients on a variety of financial, product, and strategic issues. Steve is a former member of the Casualty Actuarial Society’s Board of Directors, and past Vice President of the American Academy of Actuaries.
The winning paper is published in Variance volume 3, no. 2, 2009.