Casualty Actuarial Society

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CASACT - Committee on Reserves Announces 1996 Call for Papers

Committee on Reserves Announces 1996 Call for Papers
May 24, 1995

The Casualty Actuarial Society is pleased to extend a call for discussion papers on two topics: workers compensation reserving and mega risk liabilities. Several authors of accepted papers will be invited to present their work at the 1996 Casualty Loss Reserve Seminar. In addition, the papers will be published in conjunction with the seminar, and prizes will be awarded for the best submissions. Both CAS members and non-members are invited to submit proposals.

Workers compensation has undergone significant change in recent years. Reform of the system and changes such as the increasing use of large deductibles, alternative treatment of the exposure by employers, and managed care efforts are changing the traditional patterns exhibited by workers compensation business. In addition, traditional items such as appropriate tail factors and inflation rates as well as discounting issues continue topose challenges.

The concept of mega risks includes losses resulting from natural catastrophes such as hurricanes and earthquakes as well as mass tort claims. Mega risks include massive claim potential from lead paint, electromagnetic radiation, and tobacco exposures. The SEC, regulators, shareholders, rating agencies and the accounting profession are urging insurers and insureds to quantify these liabilities. This call is intended to build upon last year's call for asbestos and environmental papers.

As guidance, we offer the following list of sample topics:

  • Workers compensation reform and the effect on loss development patterns and trends.
  • Reserving for medical in a capitation or managed care environment.
  • Loss adjustment expenses for workers compensation.
  • Use of exposure models to estimate reserves for natural catastrophes.
  • Shortcomings of using PMLs to estimate true accumulations in recent catastrophes.
  • Reflecting multiple exposures in mega risk reserving (many lines of business, office interruption, investments, etc.).
  • Sources outside the insurance industry that can help actuaries evaluate mass tort exposure.
  • Recognition and disclosure issues associated with mass torts.

 

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

1. By September 1, 1995, 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 15, 1995, the Committee on Reserves will make a decision on the proposals. The number of proposals may be limited. The Committee on Reserves will contact 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 15, 1996, a first draft will be required for committee member review and comments. These comments will be sent to the authors by April 15, 1996.

5. By June 1, 1996, 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, the Committee may require some amount of rewriting to bring the paper to an acceptable standard.

7. Accepted papers will be printed, bound, and distributed in conjunction with the 1996 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 1996 Casualty Loss Reserve Seminar. These authors will be contacted in advance of the meeting regarding the nature of their presentation.

9. Up to two prizes, one in each category, in the amount of $1,000, will be awarded to the author of the best paper in each category and will be presented at the 1996 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 for Preparation of Papers and Procedures for Submission 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 1995 Yearbook. Acceptance of a discussion paper for this call does not guarantee its publication in the Proceedings, however.