Miccolis, Heppen Awarded 2011 Hachemeister Prize
David E. Heppen
Robert S. Miccolis
Designed to promote property/casualty-oriented papers published in an international forum, the Hachemeister Prize was created to honor Charles Hachemeister’s many contributions to Actuarial Studies in Non-Life Insurance (ASTIN) and his efforts to establish a closer relationship between the CAS and ASTIN. Papers eligible for the prize are those that were published in the previous year’s ASTIN Bulletin or presented at the previous year’s ASTIN or AFIR Colloquia.
The winning paper was presented in the Non-Life (ASTIN) track at the 2010 International Congress of Actuaries in Cape Town, South Africa in March 2010. (There are no ASTIN or AFIR Colloquia in the year of an International Congress.) The Hachemeister Prize Committee chaired by David Cummings narrowed the papers down to one winner out of a pool of more than 70 eligible papers. Judging criteria includes impact to the industry, practicality of application, originality, readability, and completeness.
The winning paper presented the authors’ views on practical approaches to consider in calculating risk margins in the measurement of insurance liabilities for property and casualty (also referred to as general insurance or non-life) insurance contracts. In particular, the paper focuses on the use of an approach to estimate risk margins that:
- Recognizes risk and uncertainty in the amount and timing of future payments needed to satisfy insurance liabilities;
- Reflects an objective assessment and measurement of risk for insurance liabilities and the price of risk in terms of the amount an insurer would rationally pay to be relieved of the insurance contract obligations that underlie such liabilities; and
- Provides useful financial information for users of IFRS financial statements.
Messrs. Miccolis and Heppen will present their prize-winning paper at the 2011 CAS Annual Meeting in Chicago.