Cyber Risk Scoring, Automated Vehicles and Price Optimization: Read Recaps of “Hot Topic” RPM Sessions
Miss out on attending the 2018 Ratemaking, Product and Modeling (RPM) Seminar? Get insight into three sessions that featured insurance “hot topics” as covered by Carrier Management in a series of stories last week:
This session addressed the unique challenges that cyber risks pose to underwriting. Speakers Ari Chatterjee, ACAS, incoming chief underwriting officer for Envelop Risk and Raveem Ismail, director for insurance/reinsurance at Fractal Industries, proposed a simple-to-calculate new measure, Propensity to be Attacked, or PTBA, which is driven by the interplay between attacker motivation and cybersecurity defense. Producing a single number as an output, PTBA can serve as a practical, quantitative risk score easily applied to individual risk underwriting.
This session featured perspectives from industry thought leaders on the multitude of factors currently complicating today’s automated vehicle insurance underwriting. Automobiles today are safer and lasting far longer than their predecessors; speakers discussed how this durability is delaying wider use of even better technology, a trend that will leave auto insurers with a broader range of risks to cover.
As Price Optimization has gained more traction in the insurance industry, there has been a divergence of opinions regarding its use. Panelists Serhat Guven, FCAS, regional director, Willis Towers Watson, Wanchin Chou, FCAS, chief actuary of the Connecticut Department of Insurance and Birny Birnbaum, executive director of the Center for Economic Justice, shared different perspectives of the conversation including a historical view, a consumer advocacy perspective and commentary from the current regulatory environment.
For additional information on this year’s RPM seminar, visit casact.org/RPM.