Casualty Actuarial Society

2012 Ratemaking and Product Management Seminar

Estimating Systemic Risk for Professional Lines

Wednesday, March 21, 2012: 11:15 a.m.
414-415 (Philadelphia Marriott Downtown)
This session will examine the actual and potential impact of systemic risk factors on Professional Lines. The session will view systemic risk from an industry wide perspective (i.e., viewing insurance as the system creating the risk) and a financial system wide perspective (i.e., systemic risks such as those that caused the financial crisis).  In this session we will demonstrate open source software developed in a research project funded by the North American Actuarial Council that can be used to model extreme financial scenarios.  We will then discuss the possible effect of the scenarios on Professional Lines including:
  • Effect on inflation (economy wide and for professional lines)
  • Effect on interest rates
  • Effect on overall economy

We will also discuss systemic events and factors that impact professional lines such as

  • Tort reform
  • Legal climate
  • Emerging exposures
  • Underwriting cycle
Moderator: Melanie Ostiguy, Chief Actuary, ACE Bermuda
Panelists: Jane Taylor, Huggins Actuarial Services, Inc.
Louise Francis, Consulting Principal, Francis Analytics & Actuarial Data Mining Inc
  • Microsoft PowerPoint - Systemic Risk and ProfessionalLiability Francis White.pdf (800.2 kB)
  • Systemic Risk and ProfessionalLiability Francis v200.pdf (2.4 MB)
  • Jane Presentation 03-21-12 Prof Liab & Systemic Risk .pdf (862.8 kB)
  • See more of: Conference Program