You are here

International Pricing Research

This Joint IFoA GIRO and CAS – CARe Working Party is exploring what makes for a good reinsurance underwriting submission

The objectives of the International Pricing Research Working Party are to:

  • study the disconnect between property reinsurance submissions and the information preferred and needed by both primary carriers and reinsurance underwriters and actuaries
  • understanding what information the reinsurer needs, benefits all parties involved in an insurance transaction – from the main street buyer to the agent to the primary insurance carrier.

Working towards:

  • the Working Party started with Property Risk for 2015 utilising a survey amongst actuaries and underwriters, investigating the various levels of what makes a good submission to be included in a forthcoming White Paper
  • for 2016 and beyond, the working party may extend to other property or casualty lines such as e.g. property cat, crop insurance, motor, employers liability, cyber or other emerging issues.

Latest updates:

Joint IFoA/CAS International Pricing Research Paper now available, 22 March 2016

We are pleased to announce that the research paper for analyzing international Property per Risk exposures is now available on the IFoA website. In 2015, the Institute and Faculty of Actuaries General Insurance Research Organization (IFoA-GIRO) and the US Casualty Actuarial Society's Casualty Actuaries in Reinsurance (CAS-CARe) jointly formed a GIRO working party to produce this reference document for usage by underwriters, actuaries, and other pricing practitioners internationally.  This paper represents the broad ranging results of this research. 

This research paper is intended to fill the void in the currently available actuarial literature related to information required by the primary and reinsurance pricing practitioner, but often lacking when pricing property per risk coverages worldwide. Results from surveys of members in the UK, European and US actuarial communities, as well as others in the related insuring communities, clearly indicated a distinct disconnect between the desired information and the information commonly included within a submission.

Sections of the research paper range from analyzing various amount of insurance definitions typically used worldwide, analyzing the impact of each of the traditional property risk characteristics (standard COPE - construction, occupancy, protection, and exposure), producing robust price monitor systems, and using information typically included in cat model submissions.  It is hoped that this information will illustrate the importance of each of these data elements, as well as providing a reference document that can be used by all parties to the insuring transaction.  This reference usage would include agents/brokers, primary companies, intermediaries, and reinsurance companies.  Much of this information may also be appropriate for usage in other property and casualty lines of business. 

The results of this GIRO Working Party reference document will be presented at the Boston CARe conference in June 2016, by two of the authors: John Buchanan and Chris Boggs. http://www.casact.org/reinsurance/

Updated Joint IFoA/CAS International Pricing Research Paper now available, August 2017

The original Pricing Research Paper was published by the Institute and Faculty of Actuaries (IFoA) and Casualty Actuarial Society (CAS) in March 2016. It was written and reviewed by a global slate of actuaries, underwriters, educators, and other leading industry experts.  It was then submitted to the General Insurance Research Organisation (GIRO) committee for consideration of the annual Brian Hey prize.  The paper was announced as the winner at the annual GIRO convention in Dublin, Ireland, in October 2016.

This Updated Paper, was peer reviewed by the IFoA, as well as edited by the CAS, for publication in the British Actuarial Journal. This revised paper reflects the suggested changes by both the IFoA and CAS. In addition to review recommendations, the paper now includes additional help for practitioners such as an Amount of Insurance (AOI) reference guide and visuals in Chapter 6, a more detailed Property Per Risk acronym reference in Appendix E, and a new Chapter 13 entitled Other Market Considerations. This new chapter helps bridge the gap between the "ideal" world contemplated in most of the rest of the paper, with additional competitive marketplace phenomena, such as the Winner’s Curse, Submission Bias, and Managing Overconfidence. Additional references and Appendices have also been included.

Outputs:

Chair: John Buchanan
Membership: 18
Established: 2015

 

Related documents

Contact Details

If you want more information about this research working party please contact the Communities Team.

professional.communities@actuaries.org.uk

Filter or search events

Start date
E.g., 27/09/2021
End date
E.g., 27/09/2021

Events calendar

  • Spaces available

    A panel discussion with investment representatives discussing the impact of investment on climate change and vice versa.

    This event is part of The Road to Glasgow: IFoA’s Sustainability Thought Leadership Series which will provide a platform for prominent contributors so that our members and others can understand the perspectives of a wide range of parties interested in the climate debate.

  • Spaces available

    Climate change is one of the greatest risks facing our world today. Addressing it will require multi-faceted solutions. Through this panel session, we will explore the different levers that can be used to meet net-zero targets including climate science and data, government engagement, and mobilising green finance.

  • Spaces available

    How governments and societies collectively respond to the climate crisis is increasingly being analysed through the lens of intergenerational fairness. Our expert panel will assess and explore the extent to which inter-generous fairness is being considered in climate policies, the lessons from those countries who are leading the way on fairness and justice in climate interventions, and more.

  • The Growth Mindset for Actuaries

    13 October 2021 - 8 December 2021

    Spaces available

    This practical course is aimed at actuaries at any stage of their career who want to develop their own growth mindset and apply it to their work setting and personal or professional lifelong learning. The content of the course builds on the lecture given by Dr Helen Wright on Growth Mindset as part of the President’s 2021 Lecture series, and will be delivered over a period of 2 months, from mid-October to early December.

  • Spaces available

    The climate crisis and the degradation of our planet will affect societies everywhere. How we address these threats will require solutions that transcend borders. As a global profession, the actuarial community is well-placed to consider and propose effective risk management solutions to help manage the climate crisis.

  • Spaces available

    Content will be aimed at all actuaries looking to understand the issues surrounding mental health in insurance and in particular those looking to ensure products and processes widen access for, and are most useful to, those experiencing periods of poor mental health.