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.
- 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.
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.
- Analyzing the Disconnect Between the Reinsurance Submission and the Global Underwriters Needs - Property Per Risk (Updated, August 2017)
- Analyzing the Disconnect Between the Reinsurance Submission and Global Underwriter's Needs - Property Per Risk (Final White Paper, March 2016)
- Analyzing the Disconnect Between the Reinsurance Submission and the Global Underwriters Needs (GIRO, October 2015)
- GIRO, October 2015 synopsis
- Analysing the Disconnect Between the Reinsurance Submission and the Global Underwriters Needs (CAE Seminar London, September 2015)
- CARe Conference presentation (Philadelphia, June 2015)
- Survey data and analysis, August 2015
- 9 November 2017
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If you want more information about this research working party please contact the Communities Team.
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The IFoA’s Risk Management and Finance and Investment Boards are delighted to host a series of webinars covering a range of topical and trending topics ranging from climate related risks to Brexit.
Notice is hereby given that the ANNUAL GENERAL MEETING of the INSTITUTE AND FACULTY OF ACTUARIES will be held at The Hub, Edinburgh on Wednesday 26 June 2019 at 16.30 (Preceded by tea from 16.00) and followed by a PRESIDENTIAL ADDRESS given by John Taylor.
The Institute for Financial and Actuarial Mathematics (IFAM) at the University of Liverpool is pleased to host the 2019 Actuarial Teachers’ and Researchers’ Conference from 27-28 June 2019. This annual two-day event has been running annually now for many years, each time hosted by a different university, and provides all those interested in actuarial research and education a great opportunity to share their ideas and catch up on the latest developments.
The Institute and Faculty of Actuaries (IFoA) and Actuarial Society of Malaysia (ASM) are organising a joint Professional Skills Training (PST) in Kuala Lumpur. This session is suitable for actuaries working in any area (i.e. it is not specifically aimed at Life, GI or any other technical discipline) and is interactive, so you should come along prepared to take part in the discussions.
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For more information on the FRG please visit this webpage.
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GIRO is attended annually by over 800 delegates and speakers who are keen to discuss key topics such as Pricing, Reserving, Modelling and the future of the insurance industry. GIRO 2018 was a huge success and we have opened bookings early for what we hope will be another brilliant conference at the EICC in Edinburgh this year.
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The Life Conference is the premier event for professionals interested in life insurance. Offering a wide range of workshops and plenary sessions it’s the perfect opportunity to discover what’s hot and current in life insurance ensuring you get up to date on the latest thinking and innovation whilst meeting and exchanging ideas with a broad range of professionals.
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