Flashcards covering key information for practice and memorization in our flashcards. Actuarial fields, organizations cas vs soa acas and fcas, how to achieve credentials exams, other requirements examples from work resources for jobs and internships. The expected value of all future costs associated with an. Several other meetings, specializing in topics such as ratemaking, predictive modeling, loss reserving. Basic ratemaking introduction to credibility download presentation 1.
Exam 7estimation of policy liabilities, insurance company valuation, and enterprise risk management. Understand why insurance companies produce statistical files. Petitioner is a public utility incorporated under the. Basic ratemaking geoff werner, fcas, maaa and claudine modlin, fcas, maaa willis towers watson this text outlines basic propertycasualty insurance ratemaking concepts and techniques. It is intended to be a single educational text to prepare actuarial candidates practicing around.
Transition rules the following transition rules were declared to be final in july 2009. For pdf files, you will need the adobe acrobat reader. He brings significant experience in ratemaking to this role, having worked as a pricing actuary and product manager in both commercial and personal lines of insurance. Insurance is a method for spreading the risk of a financial loss among a large number of people. Introduction the cas university liaison program is a volunteer program established to help facilitate the partnership between.
Introduction to increased limit factors overall rate level indication considerations. The rate case process for small gas and water and wastewater companies may differ from this. Basic ratemaking concepts have been shaped and molded over the last 100 years, primarily through experimentation and case law. Current cas syllabus to reach fcas acas requirements plus.
The online version will contain many interactive objects quizzes, computer demonstrations, interactive graphs, video, and the like to promote deeper learning. Exam 5 basic techniques for ratemaking and estimating claim liabilities exam 6 regulation and financial reporting 10. We hope that you will find the sessions valuable, enjoy meeting other students and actuaries, and use the information to help you launch a. A major difference between reinsurance and primary insurance is that a reinsurance. View and download powerpoint presentations on em 385 1 ppt. When you register for this course you will gain access to the following items except as noted from the day you register for 6 months. Cas course 5 introduction to property and casualty insurance and ratemaking prior to commencing study for this fourhour examination, candidates should read the introduction to materials for study. Construction and evaluation of actuarial models exam 4 is a threeandahalfhour, multiplechoice exam administered by preliminary actuarial examinationssoa and is identical to soa exam c. Basic ratemaking techniques volume actex mad river. The originperiod and measure classes support implementation of basic.
First, companies do not file a complete manual with each. The file must not be password protected or exceed 1 mb in size. Basic ratemaking, fcas, asa, fcas, asa changang hi wihsien wei academy fu fujen catholic university in applied mathjen catholic university in applied math feng chia university in statistics and actuarial scienceuniversity in statistics and actuarial science. Seminars conducted under the auspices of the cas are designed solely to provide a forum for the expression of various points of view on topics. Basic ratemaking by werner and modlin cas statement of principles regarding property and casualty insurance ratemaking asop no. Statistical plans describethe two basic types of statistical plans and their use in insurers predictive modeling and ratemaking. The examination is jointly sponsored and administered by the cas, soa, and the canadian institute of actuaries cia.
Key concepts provide the foundation but there is much room for interpretation and personal preference. Understand and describe the impact of data on actuarial work and projects. This is an ondemand intensive exam prep course for the cas s exam 5. Fall 2019 cas exam 5 basic techniques for ratemaking and estimating claim liabilities using basic techniques study program excerpts. The expected value of all future costs associated with an individual risk transfer. Please summarize vectren souths ratemaking and accounting proposals and 12 the statutory authority supporting these proposals. Actex exam 5 study manual 2012 edition april 27, 2012 basic ratemaking techniques volume page 378, solution to question b7c thin the 8 line, replace 1,000942 with 100,00094,600 and 51,994 with 51,860. Creates exhibits and charts in ratemaking, pricing, reserving, and management reporting. The pure premium method and the loss ratio method in insurance ratemaking. The process of determining insurance premiums is called ratemaking.
According to the cas, informed actuarial judgments can be used effectively in ratemaking. The university of iowa is proud to host this conference for students who are currently studying or interested in pursuing actuarial science. The pure premium method and the loss ratio method in. Most of the basic concepts for pricing this assumption of risk are the same as those underlying ratemaking for other types of insurance. Cas financial reporting text for exam 6, and the numerous rewrites to the syllabus for exams 7 9. As such, the authors relied heavily on a series of published articles and texts that are contained in the bibliography at the end of the text. The commission finds the revenue requirement as calculated in petitioners exhibit 2, attachment jcs1, schedule 1 is correct, and such revenue requirement is approved. Price optimization is a tool and does not replace actuarial judgment.
Yes, the company will make the required filing for a change in basic rates and 6 charges prior to the end of the 7year plan. Does anyone know if there is any document that walks one through the ratemaking process for health insurance or at least can give the basics of health insurance pricing. This is data taken from appendix a of the basic ratemaking study note. Introduction to ratemaking and loss reserving for property and casualty insurance robert l. Actuarial judgments are made throughout the ratemaking as well as risk classification process, including assumptions on the inputs and assessing the accuracy of the results. Complements described in terms of pure premium ratemaking b.
Documentation and disclosure in property and casualty. This tool enables any programmer to easily make r programs, to create userfriendly interfaces and powerful report generation abilities, that can export results as pdf files or as excel spreadsheets. Fall 2019 cas exam 5 basic techniques for ratemaking and. This is an ondemand intensive exam prep course for the cass exam 5. The online text will be available in multiple languages to promote.
Microsoft word documents and other formats will not be accepted as is, and must first be converted by you to an unsecured. The casualty actuarial society cas is a professional society of actuaries specializing in. Proposed effective date of the next rate change is january 1, 2014. Josh is currently an instructor for the tia seminars for cas exams 5 and 8, brought here by his passion for sharing learning with others. Pdf third party motor liability ratemaking with r researchgate. Past cas questions study manual chapter 8 ratemaking. The cas and soa represent the primary educational bodies of the actuarial. Rpgm is a new brand software, standing for r program gui manager. After completing the course, students are expected to be able to. Practice questions and solutions by tiny swot this section of sample problems and solutions is a part of the actuarys free study guide for exam 5, authored by mr. Basic techniques for ratemaking and estimating claim liabilities. It has been challenging to say the least, given the number of changes the cas has made to the. Copyright 201 8 the cas institute 1 pag learning objectives for data concept and visualization.
This study note will assume a knowledge of basic ratemaking concepts on the part of the reader. This is a packge which stores data used in r workshops sponsored by the casualty actuarial society 1. In cost of service regulation, the regulator determines the revenue requirementi. Manuals are available in pdf format only and can be downloaded from the e. Cas course 5 introduction to property and casualty. And by pricing i mean calculation of pure premium and then how you get from pure premium to the final premium after application of loadings. Materials and publications of the cas such as the syllabus of basic education formerly the syllabus of examinations, variance, proceedings discontinued in 2014, foundations of casualty actuarial science, ratemaking and ratemaking product management seminar archives, and others provide discussions of current ratemaking practices. A member of the academy who is not a member of the cas, but who believes that he or she satisfies the u.
Another great part during the process of completing. Shown below are the typical steps in the utility rate case process when a large investorowned electric or gas utility requests a rate increase. General insurance ratemaking and reserving syllabus. A subset of the book will be available in pdf format for lowcost printing. Module title learning objectives data science and data scientists. All policies have 12month terms and are written uniformly throughout the year. As well, there is a short note about each of the packages which we suggest be installed. Here ive compiled outlined notes of the cas exam 5 text on reserving by friedland. The policyyear method is the only ratemaking data collection technique that explicitly matches losses, premiums and exposure units to a set group of insureds. Pdf on jun 4, 2012, giorgio alfredo spedicato and others published third party. Prior to that, basic reserving was on exam 6 rather than exam 5. Chapter 17 is a chart of the dollar based ulae techniques. To download the ccp enrollment form ms word copy, click here.
All 10 preparation materials for cas exams 5, 6 and 9 moving forward for nearly 20 years, all 10 has produced study materials for candidates preparing for the upper level cas exams. Excess ratemaking ratemaking that covers claims that exceed some high attachment point, e. The data was prepared by glenn meyers and peng shi and is available from the cas. Summary notes covers all of ratemaking, the random readings, and selected portions of reserving. There are a number of packages to read and write excel files xlsx and. Insurance the concept of insurance is really quite simple. Central application service cas applicant instructions. The objective of the cas in creating a new basic ratemaking text was to replace the series of readings that existed on the syllabus of basic education as of 2007 with a single educational publication. Qs specific qualification standard for signing the statement of actuarial opinion on loss reserves. Exam 4 construction and evaluation of actuarial models.
Starting in spring 2011, basic ratemaking and basic reserving were put on the same exam. Career center ccp designation requirements association. The fourpart basic ratemaking virtual workshop offers a complete understanding of the basic concepts and practices needed for ratemaking. It is my hope that these notes be of some use to other cas candidates or curious students in gaining more insight and understanding across a spectrum of topics within insurance, from the claims process to various basic techniques for estimating unpaid claims. Giro conference and exhibition 2011 1114 october 2011 overview of presentation present a brief summary of the cass research efforts also brief mention of cass collaborations with other actuarial organizations will highlight some resources that are available from the cass web site.
Download a complete pdf of all online text references pdf this file is 5 mb. If a competitor based its loss trend on either industrywide data or a cpi index, then this actuary could just do the same. Performs basic actuarial calculations for either property and casualty, or life and disability, or healthcare insurance. That file may then be converted into a format like pdf, html or word. Cas exam 5 spring 2011 to present all 10 study materials. Study aids are available in downloadable pdf format, html, and video for. I had to convert to a pdf because of file size limitation, so sorry that page bleeding occurred as a result. This short vignette will describe the various data sets and give examples of their use. Learning objectives for data concept and visualization. Spring 2019 cas exam 5 basic techniques for ratemaking and.
Reserving chart is a chart of the unpaid claim techniques. Ratemaking process the ratemaking formula and basic components 2 3 what is cost of service regulation. An application study billie anderson, sas institute inc. Solutions cas exam 5, spring 2018 hcm 11119, page 3. The views expressed by participants are their own, and the cas takes no position on the views expressed. Casualty actuarial and statistical c task force price. Predictive analytics and the cas brian brown, fcas, maaa presidentelect casualty actuarial society. Actuarial rates in the context of national flood insurance. I always get an error message or an empty zip file.
Every document you upload must be scanned into an unsecured portable document format pdf. The objective of the cas in creating a new basic ratemaking text was to replace the. The overlap fallacy is discussed at pages 117118 of basic ratemaking. On the spring 2011 exam 5, questions 21 to 37 were on reserving. Utility prepares its revenue requirement study and files. Bibliographic information and available abstracts cited references for journals, conference proceedings, and basic patents from the us, epo, wipo, and german patent offices added to cas databases since 1997. Module title learning objectives concept and impact of data quality summarize concepts of data quality.
These excel files will be released over time and on a timely basis coincident with our recommended syllabus. Cas is adapting its basic education program to the changing environment. Basic principle an actuarial rate should reflect the hazard of the insured risk casualty actuarial society cas statement of principles regarding property and casualty insurance ratemaking actuarial standards board standard of practice no. Therefore, the commission has jurisdiction over vectren south and the subject matter of this proceeding. By spreading the risk, we are reducing the financial impact of an individual.
Another one of his teammates, jenny guo, explained how the information sessions held by actuarial coaches also proved to be pivotal in making certain that their case study was detailed and hit the points that the judges were looking for. Rate base and rate of return the rate base is the net amount of investment, funded by investors, in utility plant and other assets devoted to the rendering of utility service upon which a reasonable rate of return may be earned the rate of return is the percentage rate which the commission. Ratemaking should provide for the costs of an individual risk transfer so that equity among insureds is maintained. It is also the policy of the cas that its members should practice within the bounds of local laws and regulations. Search examples do not illustrate all of the options or databases on stn with polymer information. Bibliography loss data analytics is an interactive, online, freely available text. Welcome to the fifth annual midwest actuarial student conference. Insurance premium for a future year is a product of three factors.
To comply with the basic education requirement through selfstudy, an actuary must obtain a signed statement from another actuary who. Ratemaking survey results from the joint casfaculty and institute of actuaries working parties. Participants in a ratemaking case for further information. Em 385 1 ppt xpowerpoint download powerpoint presentations. Because of low volume, reliance on loss costs below the. Cas exam 5 only those questions on basic ratemaking the exam 5 is 20 by the casualty actuarial society. Exam 5, basic techniques for ratemaking and estimating claim liabilities.
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