Casualty Actuarial Society

Research

CASACT - Limited Attendence Seminar on Dynamic Financial Analysis

Limited Attendence Seminar on Dynamic Financial Analysis

November 17, 1997

Casualty Actuarial Society
Committee on Continuing Education

Request for Proposal
Limited Attendance Seminar on Dynamic Financial Analysis (DFA)

 
Casualty Actuarial Society

The CAS was organized in 1914 as a professional society for the promotion of actuarial and statistical science as applied to insurance other than life insurance, such as automobile, liability other than automobile, workers compensation, fire, homeowners, commercial multiple peril, and others. Such promotion is accomplished by communication with those affected by insurance, presentation and discussion of papers, attendance at seminars and workshops, collection of a library, research and other means. The membership of the CAS includes over 2800 actuaries employed by insurance companies, industry advisory organizations, national brokers, accounting firms, educational institutions, state insurance departments, the federal government and independent consultants.

CAS Committee on Continuing Education
The CAS Committee on Continuing Education endeavors to broaden the knowledge of the CAS membership in all areas of actuarial and related fields by offering a variety of educational programs throughout the year to its members and interested non-members.

Proposal and Course Requirements
The committee requests a proposal for a "hands-on" DFA seminar in 1998. The purpose of this seminar is to teach the concepts of DFA by taking the attendees through the fundamental interrelationships of DFA by using given simplified data as input or specific case studies.

The committee is looking for a qualified instructor to teach this seminar. Candidates should have a completed, tested DFA model that will be used during the seminar. The instructor should have an intimate working knowledge of the model software and underlying assumptions.

The seminar should last from one and a half days to two full days. It will be offered in a classroom environment and will be limited to 40 CAS Members. The CAS is willing to work with the respondent in finding a proper classroom setting with integrated PCs. The seminar is tentatively scheduled to be held in the fall of 1998, however, the CAS is flexible on the dates and can work with the instructor’s schedule.

The contract will be awarded by the CAS to the respondent who, in the judgment of the Committee on Continuing Education and entirely on the basis of his or her written proposal, is best able to perform the work as specified herein. A fee to the instructor will be offered, and reasonable travel expenses will be covered. A consulting agreement will be forwarded to the identified instructor, which will define the terms and conditions under which the work will be performed.

The proposal should contain the following elements:

  • A detailed description of the proposed session (requirements discussed below)
  • Target audience
  • Venue and equipment requirements
  • Computer hardware and software requirements of the attendees
  • Credentials (resume) of the instructor and past experience indicating how his/her background, education, and experience bear on his/her qualifications to undertake the project. List any past experience with seminar presentations.
  • Proposed fee
  • Instructor’s available dates and travel restraints
  • Preparation requirements (pre-reading, etc.) for attendees
  • Willingness to teach a half day preparation session

Outline
The seminar should cover a complete DFA analysis from start to finish. The seminar attendees should be led through an example. The seminar should start at the identification of a problem or strategy to be studied. The seminar should then continue through the entry of the data to the testing of sensitivity, to the design of a tactical business strategy using the results of the model. The following is a list of common DFA issues that should be discussed:

  • Interest Rates
  • Multiple Year Effects
  • Loss Experience
  • Correlations

  •     Asset to asset correlation
        Liability to liability correlation
        Asset to liability correlation
  • Volatility Estimation
  • Accounting

  •     Balance Sheet and Income Statement issues should be discussed.
        GAAP vs. SAP

Sensitivity testing should be completed for all key variables, their correlations and volatilities.

All proposals must be submitted to: Alison Malone at the CAS office, 1100 N. Glebe Road, Suite 600, Arlington, VA 22201 by January 20, 1998. Proposals will then be forwarded to the Committee on Continuing Education for review; and candidates will be notified by phone. Please include address and phone number with proposal.


Research section