Advanced Topics Panel and Small Group Project Moderator: Alice Underwood, FCAS, Executive Vice...
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![Page 1: Advanced Topics Panel and Small Group Project Moderator: Alice Underwood, FCAS, Executive Vice President, Willis Re Inc. Panelists: Charles Goldie, FCAS,](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649e255503460f94b13cc8/html5/thumbnails/1.jpg)
Advanced Topics Panel and Small Group Project
Moderator:Alice Underwood, FCAS, Executive Vice President, Willis Re Inc.
Panelists:Charles Goldie, FCAS, Senior Vice President, Manager of Specialty Lines, Partner Re U.S.Jeff Dollinger, FCAS, Senior Vice President & Chief Actuary, Endurance Reinsurance Corporation of AmericaDaniel R. Kamen, FCAS, Vice President, Folksamerica Reinsurance Company
![Page 2: Advanced Topics Panel and Small Group Project Moderator: Alice Underwood, FCAS, Executive Vice President, Willis Re Inc. Panelists: Charles Goldie, FCAS,](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649e255503460f94b13cc8/html5/thumbnails/2.jpg)
Paul Ingrey’s “Reinsurance Clock”
Pricing starts to drop
Companies compete to increase market share
Prices fall dramatically
Profits slide
Results horrible
Pricing CANNOT go lower
EUPHORIA!
All companies flourish
Capacity gets expensive
Prices up sharply
Crunch
AM Best writes this decade’s “letter of concern”
Source: David Skurnick, “The Underwriting Cycle”http://www.casact.org/pubs/forum/93sforum/93sf377.pdf
![Page 3: Advanced Topics Panel and Small Group Project Moderator: Alice Underwood, FCAS, Executive Vice President, Willis Re Inc. Panelists: Charles Goldie, FCAS,](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649e255503460f94b13cc8/html5/thumbnails/3.jpg)
What Triggers Underwriting Cycles?
• Catastrophic events• New legal theories• Interest rates• Wall Street• The demands of growth• Naïve capital
![Page 4: Advanced Topics Panel and Small Group Project Moderator: Alice Underwood, FCAS, Executive Vice President, Willis Re Inc. Panelists: Charles Goldie, FCAS,](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649e255503460f94b13cc8/html5/thumbnails/4.jpg)
What Fuels Underwriting Cycles?
• You get the money FIRST…
…and you pay claims LATER• Incentive plans• “Feeding the Beast”• Herd mentality• Actuaries?
![Page 5: Advanced Topics Panel and Small Group Project Moderator: Alice Underwood, FCAS, Executive Vice President, Willis Re Inc. Panelists: Charles Goldie, FCAS,](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649e255503460f94b13cc8/html5/thumbnails/5.jpg)
What Dampens Underwriting Cycles?
• Regulation
• Nimble capital
• Actuaries?
![Page 6: Advanced Topics Panel and Small Group Project Moderator: Alice Underwood, FCAS, Executive Vice President, Willis Re Inc. Panelists: Charles Goldie, FCAS,](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649e255503460f94b13cc8/html5/thumbnails/6.jpg)
What’s the Actuary’s Role?