Moderator:
Gary Blumsohn, Chief Actuary, Arch Reinsurance Company

Common Pitfalls and Practical Considerations in Risk Transfer Analysis
Risk transfer analysis has many nuances and pitfalls for an actuary testing a contract. This will be a discussion of several pitfalls and will provide direction on how to address them based on previously published materials from the accounting boards, the American Academy of Actuaries, and the Casualty Actuarial Society. The discussion will also address several outstanding risk transfer concerns that have no easy answers. While these issues do not have obvious solutions, the potential solutions will be presented with the intent to shed some light on these topics.

Presenters:
Paul Vendetti, Pinnacle Actuarial Resources, Inc.

An Update to D'Arcy's “A Strategy for Property-Liability Insurers in Inflationary Times”
You would have to go back to the early 1980's to find a time when inflation was as significant a risk to the economy and the insurance industry as it might be today. Stephen D'Arcy outlined a strategy for Property-Casualty insurers to follow in an inflationary environment based on regression analysis with insurance underwriting returns as well as investment returns with inflation. To help provide more insight regarding the observed relationships, an auto-regressive model is fit to the industry returns in addition to the fits that D'Arcy proposed. This paper updates D'Arcy's analysis to include the last 30 years and to test whether or not the strategy remains appropriate for insurers today.

Presenter:
Richard Krivo, Vice President, Partner Re U.S.