Casualty Actuarial Society

Research

2001 Call for Ratemaking Discussion Papers
August 24, 1999

From: Ratemaking Discussion Paper Chairperson

Re: 2001 Call for Ratemaking Discussion Papers

The Casualty Actuarial Society is again pleased to extend a call for discussion papers on ratemaking topics. As ratemaking is one of the casualty actuary’s major area of expertise, it is important that we foster research and keep our literature current. The Ratemaking Discussion Paper Program is offered to accomplish these goals and to provide additional material for basic and continuing education purposes. This program does not replace the annual CAS Call Paper Program.

Authors of accepted papers may be invited to present their work at the 2001 Ratemaking Seminar. In addition, the papers will be published in the CAS Forum and will be available on the CAS Web Site prior to the Seminar. A $1,000 prize will be awarded to the best paper submitted. Both CAS members and non-members are invited to submit proposals for papers.

We welcome all papers on ratemaking topics, but prefer papers that focus on the considerations listed in the CAS Statements of Principles Regarding Property and Casualty Insurance Ratemaking. In addition, we have listed below topics which are of interest as current events issues or subjects in which various committees of the CAS have expressed a desire to expand the body of available literature.

  1. MODEL DEVELOPMENT IN RATEMAKING
    • New techniques and their impact on ratemaking and classification analysis
    • Incorporating stochastic simulations
    • Correlation considerations between various lines of business and accident years
    • Multivariate techniques

  1. LEGISLATIVE AND MARKET CONSIDERATIONS

    • Implications of national no-fault law for personal auto insurance
    • Considerations in using credit reports for classifying insureds
    • Impact of legislative requirements such as building code effectiveness
    • Ratemaking issues with mergers and acquisitions
    • Use of non-insurance data
  1. PRICING CHALLENGING LINES OF BUSINESS
    • Employment practices liability
    • Directors and officers liability
    • Errors and omissions coverage
    • Extended warranty and product service coverage
    • Lease/Loan gap coverage
  1. DATA ISSUES
    • Sources and uses of non-insurance data for ratemaking purposes
    • Proper treatment of losses associated with Y2K

Call Paper Timetable

Timely submission of the discussion papers is critical to the success of the call. The procedures and timetable enumerated below will apply.

  1. Deadline for Proposals
    By October 29, 1999, authors should submit proposals for their papers including the title, a short description of the topic(s) to be addressed, and the approach that will be taken. Proposals should be submitted to:
  2. Casualty Actuarial Society
    1100 North Glebe Road, Suite 600
    Arlington, Virginia 22201
    Attn: Committee on Ratemaking

    Proposals may also be submitted by e-mail to office@casact.org.

  3. Acceptance of Proposals
    By January 3, 2000, the Committee on Ratemaking will have made a decision on all proposals. Preference will be given to papers that specifically address the topics listed above. The Ratemaking Discussion Paper Chairperson will contact the authors regarding the acceptance of their proposals.
  4. Monitoring Progress
    A Committee member will be assigned to work with each author to monitor the paper’s progress and provide general guidance in completing the paper. The author may be requested to provide interim drafts.

    By May 1, 2000, a first draft of the completed paper will be submitted to the assigned Committee member for review.

    By July 14, 2000, all comments on the first draft will have been forwarded to the author.
  5. Completion Date
    By October 2, 2000, the Committee on Ratemaking must receive the completed paper and a 200-word abstract. Each paper will be screened by the Committee to assure its quality of exposition and relevance to the call. The Committee may require further rewriting of the paper to bring it to an acceptable standard.
  6. Approving the Completed Paper
    By November 27, 2000, authors will have been notified as to the results of the screening process, and final approvals will have been provided. Accepted papers will be published in the CAS Forum and will be available on the CAS Web Site prior to the 2001 Ratemaking Seminar.

    Authors may be invited to present their papers at the Ratemaking Seminar, scheduled for March 12-13, 2001 in Las Vegas. These authors will be contacted in advance of the meeting regarding their presentations.

  7. Prize Competition
    All papers submitted and accepted in response to the call and meeting the minimum standards established by the Committee will be included in the prize competition. A prize in the amount of $1,000 will be awarded to the best paper submitted in response to the call, and will be presented to the author at the Ratemaking Seminar. The best paper will be selected by an independent review committee that will judge the papers anonymously. If no paper is considered eligible, the award shall not be made.
    The criteria for evaluation will reflect:
    • Originality of ideas;
    • Understandability of complex concepts;
    • Contribution to the ratemaking literature;
    • Thoroughness of ideas expressed; and,
    • Timeliness and relevance of research.

Papers must be no more than 10,000 words and should be prepared in accordance with the procedures outlined in the "Guide for Submission to CAS Forum". Additional guidance for the preparation of technical papers for publication is provided in the "Guides for the Submission of Papers" in the 1999 CAS Yearbook (pages 279-287). In addition to a hard copy of the paper, the authors will be required to provide an electronic copy of the paper on diskette or by e-mail, and will be asked to sign a "Release and License" form allowing the CAS to publish the paper.

It is hoped that the authors will also submit their papers for publication in the Proceedings in accordance with the procedures in the Yearbook. However, acceptance of a discussion paper for this call does not guarantee its acceptance for publication in the Proceedings.

The Committee on Ratemaking looks forward to receiving proposals in response to the call, and is happy to respond to inquiries from interested parties. Questions may be addressed to the Committee on Ratemaking at the CAS Office address.

Your participation in this effort to produce new papers will contribute to the written body of knowledge for the CAS and to the success of the 2001 Ratemaking Discussion Paper Program.


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