Casualty Actuarial Society

Press Room

Reminder: Request for Research Consulting Proposals - Allocation of the Costs of Holding Capital

07/26/2012 —

Request for Research Consulting Proposals

  1. STATEMENT OF REQUESTED RESEARCH
    The consultant shall propose to provide certain services to the CAS to produce a research document discussing the role of capital costs in pricing and managing lines and sub-lines of Property Casualty Insurance.


  2. OBJECTIVES
    The principal objectives of this consulting project is to advance the understanding of the concepts and practical methods of calculating the capital costs appropriate for lines and sub-lines as presented in the Management Summary and Thematic Category of “Allocation of Capital” found in the Risk Premium Project 2 Report at www.casact.org/research/rpp2. Specifically, the consultant should address the suggested Allocation of Capital research description and be familiar with the general thrust of the allocation of capital literature as listed in the RPP2 Thematic category and found in the RPP2 database under Risk Management, Allocation of Capital category. An analysis of several reasonable allocation methods on a common set of property casualty insurance data, including both short and long-tailed lines would be required. In the event that actual data are unavailable, realistic simulated data for several lines, both short and long-tailed lines may be used.


  3. PERIOD OF PERFORMANCE
    Consultant shall provide services until the research project objectives as described above are expected to be completed, September 15, 2012 to January 31, 2013, with an interim report due December 1, 2012.


  4. PAYMENT FOR SERVICES
    The CAS Committee on The Theory of Risk shall determine the appropriateness of the total estimated cost for any consulting work. Funding will be dependent on the scope and relevance of any proposal that responds to this RFP. Payment(s) are made at the end of each research segment described in the consulting proposal in which services or expenses incurred. Final payment for such services and expenses shall be rendered by the CAS within 30 days after acceptance of the final report and documentation.


  5. PROPOSAL SUBMISSIONS
    Consulting proposals should be submitted by August 1, 2012 to the Committee on the Theory of Risk, ksonnet@casact.org

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