Ratemaking Contest Winners Announced
The CAS Ratemaking Committee is pleased to announce that the team of Thomas L. Ghezzi, FCAS and Katharine Barnes, FCAS, has been selected as the winner of the 1999 Ratemaking Contest.
The Committee sponsored a ratemaking contest for the best actuarial solution to a real-life private passenger auto insurance ratemaking problem. Contestants were asked to calculate rate level indications for a private passenger automobile assigned risk plan. Statewide rate level changes by coverage, as well as changes by rating territory, driver class and driver surcharge class were to be determined. The entries to the contest were to include an actuarial report that described the actuarial ratemaking methodology used along with the actuarial justification for the models, techniques or methods selected.
Judging was conducted by a panel of three actuaries that were experienced in automobile ratemaking, with no connection to the plan or the automobile insurance market in that state. The judging criteria was based upon the application of actuarial ratemaking principles and standards of practice to the problem presented, as well as how well the actuarial report justified the methods used to calculate the rate level indications.
Ghezzi and Barnes were awarded a prize of $1,000 for their winning submission. A follow-up session on the contest will be held at the 2000 Ratemaking Seminar, March 9-10, 2000, in San Diego, California.