Casualty Actuarial Society

Research

Committee on Reserves Announces 1994 Call for Papers
May 24, 1995

The Casualty Actuarial Society is pleased to extend a call for discussion papers on environmental liability and other mass action reserving topics. This can include toxic torts, asbestos, special liabilities, etc. Several authors of accepted papers will be invited to present their work at the 1994 Casualty Loss Reserve Seminar in Boston. In addition, the papers will be published in conjunction with the seminar, and a prize will be awarded for the best submission. Both CAS members and non-members are invited to submit proposals.

The insurance industry's understanding of these liabilities is in its infancy. This is seen in public documents in the caveats attached to reserve estimates for environmental and asbestos exposures. While the legal system may not produce rulings consistent enough to relax those caveats for years, the actuarial profession can develop resources and techniques for the industry to respond to the developing challenges. This call paper program invites you to address these foundationbuilding needs.

The committee will welcome a broad range of topics related to environmental liability reserving. As guidance for likely acceptable topics, we offer the following list of sample titles:

  • Applying asbestos lessons to pollution reserving problems.
  • Surveying the claim adjustment and actuarial techniques for mass action reserves.
  • Resources revealed and reviewed for the reserving of environmental liabilities.
  • Describing special liability reserves in statutory opinions and SEC disclosures.
  • Loss distributions useful in studying mass action reserves.
  • Graphical techniques to review and track environmental liabilities.
  • Loss reserves and CERCLA: a case study in insurers' potential liability for toxic waste clean-up.
  • Special issues for reinsurers in mass action reserving.
  • Database requirements of special liabilities.
  • A survey of accounting issues relating to the establishment of environmental liability reserves.

Timely submission of the discussion papers is critical and the following procedures will apply:

1.    By October 4, 1993, authors should submit proposals that include a title and short description to:

Casualty Actuarial Society
1100 N. Glebe Rd., Suite 600
Arlington, VA 22201
Attn: Committee on Reserves

2.    By October 29, 1993, the Committee on Reserves will make a decision on the proposals. The number of proposals may be limited. The Committee on Reserves will contact the authors regarding their proposals.

3.    A committee member will be assigned to work with each author and will monitor his or her progress. The committee may request interim drafts based on a schedule proposed by the author.

4.    By March 30, 1994, a first draft will be required for committee member review and comments. These comments will be sent to the authors by May 16.

5.    By July 6,1994, the completed paper of no more than 10,000 words and a 200-word abstract must be received by the Committee on Reserves.

6.    Each paper will be screened by the Committee on Reserves. Occasionally, an initially accepted proposal may result in a paper that does not meet the minimum standards established by the Committee (either due to relevance of material or quality of exposition). Therefore, some amount of rewriting may be required by the committee or the paper may not be included.

7.    Accepted papers will be printed, bound, and distributed in conjunction with the 1994 Casualty Loss Reserve Seminar. The criteria for publishing are the same as the prize criteria listed in item 9 below.

8.    Several authors will be asked to present their papers at the 1994 Casualty Loss Reserve Seminar. These authors will be contacted in advance of the meeting regarding the nature of their presentation.

9.    A prize, in the amount of $1,000, will be awarded to the author of the best paper and will be presented at the 1994 Casualty Loss Reserve Seminar. The winner will be selected by a review committee which will review submissions anonymously. The criteria for evaluation will include:

  • Originality of ideas
  • Clear presentation of complex concepts
  • Contribution to the loss reserving literature
  • Thoroughness of ideas expressed

All papers should be prepared in accordance with Guides F and G in the Guides for Preparation of Papers. It is hoped that the authors will also submit their papers for publication in the Proceedings in accordance with procedures shown in the 1993 Yearbook. Acceptance of a discussion paper for this call does not guarantee its publication in the Proceedings, however.

Your participation in this effort to produce new papers will help to build a foundation on which the CAS can begin to respond to the challenges of environmental impairment liability reserving.