Casualty Actuarial Society

Research

Call for 1998 Ratemaking Discussion Papers
August 1996

FROM: Ratemaking Discussion Paper Chairperson
RE: Call for 1998 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 areas of expertise, it is crucial that we foster research and keep our literature current. This program is offered to accomplish these goals, as well as to provide additional written material for basic and continuing education purposes. This program does not replace the annual CAS Call Paper Program.

A prize will be awarded for the best submission and a few selected authors will be asked to present their papers at the March 1998 Ratemaking Seminar. Both CAS members and non-members are invited to submit proposals.

We welcome all papers on ratemaking topics, but prefer papers with specific focus based upon the considerations listed in the CAS Statement of Principles Regarding Property and Casualty Insurance Ratemaking. Preferred topics are listed below.

Topics A, B, and C are of great interest as current event issues. Various committees of the CAS have expressed an interest in encouraging and expanding the body of available literature in these areas.

A. Treatment of Natural Catastrophes in Ratemaking

  • Risk Load Issues
  • Individual Company Perspective
  • Wind Pools, Earthquake Pools, JUAs and other Alternative Mechanisms

B. Availability/Affordability Issues in a Ratemaking Context

  • Property Insurance to Value
  • Economic Effects on Setting Rates
  • Development of Coinsurance Credits
  • Interdependence of Ratemaking and Availability

C. Environmental Issues

  • Methods to Include Exposure to Environmental Liability in the Rate Levels for Traditional and Non-Traditional Products

D. Tort Reform Effects on Ratemaking

  • Pricing Various Tort Reforms
  • Effects on Insurance Limits and Layering

E. Managed Care Issues

  • Effects on Ratemaking
  • Pricing Liability Insurance for the Managed Care Providers

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

  1. By November 1, 1996, authors should submit proposals that include a title and short description to:
    Casualty Actuarial Society
    1100 N. Glebe Road, Suite 600
    Arlington, VA 22201
    Attn: Ratemaking Discussion Paper Committee
  2. By January 1, 1997, the Committee on Ratemaking will made a decision on the proposals. A limited number of proposals will be accepted with preference given to papers that specifically address items listed above. The Ratemaking Discussion Paper Chairperson will contact the authors regarding their proposals.
  3. A committee member will be assigned to work with each author and will monitor the progress of each author and may request interim drafts.
  4. By May 1, 1997, a first draft will be required for committee member review and comments. These comments will be sent to the authors by July 15, 1997.
  5. By October 1, 1997, the completed paper of no more than 10,000 words and a 200- word abstract must be received by the Ratemaking Discussion Paper Committee.
  6. Each paper will be screened by the Committee on Ratemaking. 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, some amount of rewriting may be required by the Committee or the paper may not be included.
  7. Accepted papers will be printed, bound, and distributed in advance of the 1998 Ratemaking Seminar. The target date for distribution is February 15, 1998. (The number of papers distributed may be limited by the space available in the CAS Forum.)
  8. A few authors will be asked to present their papers at the 1998 Ratemaking Seminar. These authors will be contacted in advance of the meeting regarding the nature of their presentation.
  9. A prize, in the amount of $1,000, will be awarded to the author of the best paper and will be presented at the 1998 Ratemaking Seminar. The winner will be selected by a review committee which will review submissions anonymously. If no paper is considered eligible, the award shall not be made. The criteria for evaluation will include:
    • Originality of ideas
    • Understandability of complex concepts
    • Contribution to the ratemaking literature
    • Thoroughness of ideas expressed
    • Timeliness and relevance of research

All papers should be prepared in accordance with the "Guides for the Submission of Papers" in the CAS Yearbook. It is hoped that the authors will also submit their papers for publication in the Proceedings in accordance with procedures shown in the 1996 Yearbook. However, acceptance of a discussion paper for this call does not guarantee its publication in the Proceedings.

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 1998 Ratemaking Discussion Paper Program.


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