Two Working Parties were formed in 2011 to conduct research on the NAIC Risk-Based Capital (RBC) formula. The Dependency and Calibration Risk Working Party (DCWP) submitted a report to the CAS eForum that summarizes 2011 research covering the identification of gaps in the current RBC formula and identification of possible alternative approaches. The Underwriting Risk Working Party (URWP) submitted a report to the CAS eForum that summarizes 2011 research into the potential for improvements to the calculation of underwriting (reserve and premium) risk charges within the constraints of the current NAIC RBC formula and its current parameter calibration procedures. Research in both Working Parties is continuing in 2012. The panelists will discuss the results of the work to date, the directions in which new research continues, and interim results.
Allan Kaufman, Managing Director, FTI Consulting
Daniel Murphy, President, Trinostics, LLC
Christina Zhou, Partner, DAS Actuarial Services, LLC