Casualty Actuarial Society

Research

2007 Call for Ratemaking Discussion Papers

From: CAS Committee on Ratemaking

The Casualty Actuarial Society is again pleased to extend a call for discussion papers on ratemaking topics. This is the first call under our new two-year cycle, and demonstrates our efforts to improve the process for submitting and reviewing papers and to give authors sufficient time to explore topics and to submit high-quality research. After significant deliberation, the Committee on Ratemaking decided to not issue the 2006 annual call for papers, and to convert to a biennial system.

Ratemaking is a major area of expertise for casualty actuaries; it is important that we foster and publish timely, relevant, and high-quality research. The Ratemaking Discussion Paper Program is offered to further these goals and to provide additional material for basic and continuing education purposes. Papers will be reviewed for acceptance based on:

  1. Originality of ideas;
  2. Understandability of concepts;
  3. Contribution to the ratemaking literature;
  4. Thoroughness of ideas expressed; and
  5. Timeliness and relevance of research.

Authors of accepted papers may be invited to present their work at the 2007 Ratemaking Seminar currently scheduled for March 8 to 9, 2007 in Atlanta, Georgia. 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 prize fund of $2,500 is available for the outstanding papers submitted in response to the call. Both CAS members and non-members are invited to submit proposals for papers.

All papers on ratemaking topics are welcome, but papers that focus on the considerations listed in the CAS Statement of Principles Regarding Property and Casualty Ratemaking are preferred. In addition, suggested ratemaking topics based on current events and topics that deserve new or continued research are listed below.

  1. Expert Underwriting and Pricing Systems, including:
    • Methods of incorporating and analyzing credit-related data, as well as other data in scoring models
    • Models used outside of personal lines
    • Experience and uses outside of the United States

  2. Professional Liability Insurance Issues
    • Medical Malpractice Liability
    • Directors & Officers Liability
    • Other Professional Liability
    • Experience and issues outside of the United States

  3. Economic Forces in Property/Liability (Non-Life) Insurance:
    • Elasticity of demand
    • The breakeven point and the role of the combined ratio

  4. Product Development, including:
    • Emerging products outside of the United States
    • Pay-as-you-drive Automobile Insurance
    • Internet Liability Insurance
    • Data issues and ratemaking for start-up companies

Call Paper Timetable
Timely submission of the discussion papers is critical. The procedures and timetable enumerated below apply.

  • Deadline for Proposals
    By April 29, 2005, authors must submit proposals for their papers including the suggested title, a short description of the topic(s) to be addressed, the approach that will be taken, and a survey of existing actuarial literature on the subject (title and abstract of a maximum of the five most relevant papers). Authors should review the criteria for acceptance shown above, and the format of papers shown below. Proposals should be submitted electronically, including contact information, via e-mail to the Casualty Actuarial Society.

  • Acceptance of Proposals
    By May 27, 2005, the Committee on Ratemaking will decide which proposals are accepted. The Ratemaking Discussion Paper Chairperson will contact the authors regarding the decision.

  • Monitoring Progress
    A Call Paper Sub-Committee will be assigned to work with each author to monitor the paper's progress and to provide general guidance in completing the paper within the timeframes. The sub-committee Chairperson will monitor progress. Authors are encouraged to share drafts with the sub-committee as work progresses, and are required to submit interim drafts according to the following schedule:

    • By November 11, 2005, a completed draft of the paper will be submitted to the Chair of the assigned Sub-Committee for review.

    • By February 10, 2006, the Sub-Committee will forward review comments on the draft to the author(s).

    • By May 19, 2006, a second draft of the paper will be submitted to the Chair of the assigned Sub-Committee for review.

    • By July 21, 2006, the Sub-Committee will forward review comments on the second draft to the author(s).

  • Completion Date
    By September 15, 2006, the Committee on Ratemaking must receive the completed paper including a 200-word abstract. Each paper will be screened by the Committee to assure its quality of exposition, relevance to the call and to ratemaking research, and adherence to format requirements described below. The Committee reserves the right to not publish a submission.

  • Approving the Completed Paper
    By November 30, 2006, authors will be notified of the results of the screening process. Accepted papers will be published in the CAS Forum and will be available on the CAS Web Site prior to the 2007 Ratemaking Seminar.

  • Presenting the Paper
    Authors may be invited to present their papers at the CAS Ratemaking Seminar, scheduled for March 8 to 9, 2007 in Atlanta, Georgia. These authors will be contacted in advance of the meeting regarding their presentations.

  • 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 fund of $2,500 is available for the best paper(s) submitted in response to the call, and will be presented to the author(s) at the Ratemaking Seminar. An independent review committee that will judge the papers anonymously will select the best paper(s). If no paper is considered eligible, the award shall not be made.

Format of Papers
Papers must be no more than 10,000 words and should be prepared in accordance with the Research Paper Template, and the procedures in the Guide for Submission to CAS Forum on the CAS Web Site. Key words in the abstract should be based on the CAS Research Taxonomy. Additional guidance for the preparation of technical papers for publication is provided in the Guides for the Submission of Papers in the 2004 CAS Yearbook (pages 346-353) and on the CAS Web Site.

In addition to a hard copy of the paper, 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 "Permission to Publish" form allowing the CAS to publish the paper. Authors are encouraged to submit working templates in spreadsheet form for models or methods discussed or developed in their papers and/or PowerPoint presentations incorporating the details of the paper's calculations. The spreadsheets and presentations will be posted on the CAS Web Site along with 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 via e-mail to office@casact.org.

Your participation in this effort will contribute to the written body of knowledge for the CAS and to the success of the 2007 Ratemaking Discussion Paper Program.