2000 Discussion Paper Program
Topic: Insurance in the Next Century
The rate of change in the insurance industry is accelerating to the point that what we have observed in the last twenty years may be compressed in the next five. This Discussion Paper Program will offer a forum to share thoughts and ideas on changes we are likely to see in the insurance industry as we enter the next millennium. Possible paper topics (and please feel free to come up with your own creatively plausible ideas) that relate to this subject are:
- Technology – Ten years ago, year-end reserve reviews were performed using data evaluated as of June or September. Now data memory is cheap and computer processors are fast. Also, data-warehousing and the availability of information over the Internet have affected the industry’s ability to obtain and evaluate significantly more information. Similarly, it seems that the Internet will revolutionize insurance marketing, as we have watched it revolutionize other industries. What impacts will technology have in marketing, underwriting, and the evaluation and pricing of risk?
- International – The US insurance market no longer belongs solely to domestic insurers. Similarly, many US insurers have expanded operations abroad. What opportunities are presented to the actuary in this new environment, and how can we maximize our effectiveness?
- Securitization – A whole new world of financial products has become available. We have already seen new products emerge in catastrophe futures, derivatives, integrated products, all of which affect the financial distribution of insurance risk. Furthermore, the definition itself of "insurance risk" seems to be broadening by the minute. What is new and what might we look forward to?
- Reinsurance – New products, new markets, expansion into primary markets, mergers and acquisitions, competition from abroad……How has reinsurance changed, what issues are being raised, and do you foresee sweeping changes in the way reinsurance operates in the market place as the new millennium comes upon us?
- Merger/Acquisition/Demutualization – Changes and deals which have reshaped the market seem to be happening every day, both within the industry and outside of it. For example, non-insurance companies, particularly financial institutions, are setting up or acquiring insurers. In general or in particular, what issues do actuaries face in this arena? Is the consolidation trend here to stay? How might the actuary play a role in mergers and acquisitions?
- Product Development – To what extent will products in the future be tailored to each individual customer? How does this affect marketing and pricing? How much is being done today and how much farther will it go?
- Marketing to Affinity Groups – What have the successes and failures been? What are the special products out there for these groups, and how are they priced? What issues arise in risk selection? Can these techniques be applied to both commercial and personal lines?
- Territorial Rating – New models are being created to address discontinuous rates at territorial boundaries. What is being used today? How might territorial rating change in the future?
- Strategic Planning – With both the industry and society changing so quickly, how will strategic planning affected? What are companies doing to stay on top of all the changes? How involved are actuaries in both planning for and reacting to changes in the marketplace? In what ways will DFA be challenged to grow ever more responsive to the needs of companies bearing risk?
- Direct Marketing – What have the successes and failures been? What does the future hold with the expansion of the Internet? How might insurers interact with other financial service companies that may expand into the realm of insurance?
- Alternative Markets – Will captives grow or diminish in popularity into the next millennium? What needs do they continue to serve? What other alternative risk transfer mechanisms can be expected to emerge and develop?
Accepted papers will be published in the Spring 2000 Discussion Paper Book, and authors will have the opportunity to present their papers at workshops scheduled during the CAS Spring Meeting in Las Vegas, Nevada on May 7-10, 2000.
The CAS hopes that you can participate in the Discussion Paper Program, and thanks you for considering being a part of it. The results will contribute to the written body of knowledge of the CAS and to the success of the 2000 Discussion Paper Program.
Very Truly Yours,
Abbe Sohne Bensimon
Vice President, Continuing Education
To participate in this Discussion Paper Program, you need to prepare a proposal which includes a title and a short description of your paper. The description should outline the key issues of your paper and the conclusions you intend to reach. It would also be helpful if you could describe the methods you might use if the paper is to be technical in nature. This would give the committee the best possible opportunity to guide you in reaching the widest possible audience.
When a proposal is submitted, the name of the author is not known to the Committee on Continuing Education members as they decide to accept or reject the proposals. This is done to make sure the process is as fair as possible. You can help by omitting any references to companies or people in your proposal.
The general schedule for the Year 2000 Discussion Paper Program is as follows:
Deadline for Proposals
The proposals must be received by August 2, 1999. They should be addressed to:
Mr. Floyd M. Yager
Discussion Paper Chairman
Deerbrook Insurance Comapny
51 West Higgins Road, Suite V2B
South Barrington, Illinois 60010
FAX: (847) 551-2506
If you wish to discuss an idea for a paper with Floyd, he would welcome your e-mail or call at (847) 551-4757.
Acceptance or Rejection of Proposals
By early September, the Committee on Continuing Education will have reviewed each proposal and made a decision to accept or reject it. The Chairman will contact each author regarding the Committee's decision.
Monitoring the Progress
Timely completion of the papers will be necessary so that all the papers can be combined into a book which can be distributed to the CAS members well before the Spring 2000 meeting. The Chairman will be in regular contact with each author and will provide general guidance in completing the paper. Please note that the papers should be prepared in accordance with the "Guides for the Submission of Papers" in the 1999 CAS Yearbook (pp. 279-287). It is hoped that the authors will also submit their papers for publication in the Proceedings; however, papers must be submitted separately to the Proceedings for independent consideration.
The completed paper and a 200 word abstract must be received by the Discussion Paper Chairman by November 15, 1999.
Approving the Completed Paper
Each paper will be reviewed and screened by the Committee on Continuing Education. Occasionally, an initially accepted proposal may result in a paper which does not meet the minimum standards established by the Committee either due to relevance of material or quality of exposition. When that happens, some re-writing may be required, or the paper may not be included in the program.
Discussion of Papers
All authors will be invited and expected to discuss their papers at the workshops scheduled during the 2000 Spring Meeting in Las Vegas, Nevada. Authors will be contacted in advance of this meeting regarding the nature of the presentation and coordination with the program.
Preparation of Bound Papers
All accepted papers meeting the deadlines will be printed, bound and distributed in advance of the meeting.
Michelbacher Prize Committee
The Michelbacher Prize Committee will review submissions anonymously and decide upon a winner in accordance with the criteria sent to the authors. These criteria will be sent to the authors after their proposals have been accepted. The Michelbacher Prize, in the amount of $1,500, will be awarded to the author of the best paper and presented at the 2000 Spring Meeting.