2013 Charles A. Hachemeister Prize is Awarded
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 key criterion for the prize is the potential for impact on North American property-casualty practice. (Other criteria include those important in any research paper—originality, completeness, and readability.)
In their winning paper, Dutang, Albrecher, and Loisel examine the impact of a competitive market on insurance pricing, given the solvency regulation regime, the price elasticities of the customers, and the current customer portfolios and capital positions of the insurers. As the authors point out, this model could be extended to incorporate asymmetric information (adverse selection), reinsurance, and marketplace changes over time.It could also be extended in other directions, such as to incorporate brand equity. This may encourage the profession to think more broadly about pricing than as simply a cost-plus problem. The paper is also timely as the Casualty Actuarial Society is considering revisions to its Statement of Principles on Ratemaking.
The authors will be invited to present their paper at this year's CAS Annual Meeting in Minneapolis (Nov 3-6).