Professional Development
 
In Focus:The Gathering Storm Digital and Climate Disruptors

Program

Thursday, October 27, 2016

07:00 – 17:30      Registration and Information Desk 

07:30 – 08:30      Continental Breakfast 

08:30 – 10:00      General Session 

Session 1 (General) • The Internet of Things and Causal Analytics
Track: General Sessions (GS1)
Room: Ballroom
Moderator:
Robert Curry, actuarial product director, personal property, Insurance Services Office
Speakers:
Donald F. Mango, FCAS, CERA, vice-chair, Guy Carpenter
Philip Schwartz, chief technical officer for the financial services sector, IBM Analytics

Actuaries are incrementally expanding traditional practice areas using internet of things (IoT) data to improve pricing, underwriting, segmentation, and claim management. A more troubling threat is the quantum increase in the insured companies’ better understanding and control of risk drivers, monitoring, mitigation, prevention, and cost-benefit assessment of risk mitigation and transfer. In short, they will become experts in causal analysis. The implications for the actuarial profession are far from clear. We are experts in post-event financial effects analysis i.e., the results of incidents reported after the fact via claims through the screen of the insurance process. What is the actuarial value proposition in causal analysis? What do we know about real-time, pre-event, condition, and hazard-level monitoring? What is our brand promise in this space? This session, co-presented by Guy Carpenter and IBM, will discuss the implications of current industry practices around IoT data capture, analytics, and predictive maintenance.

10:00 – 10:15   Refreshment Break

10:15 – 11:30   Concurrent Sessions

Session 2 • Big Data Impact on Optimal (Re)Insurance Premium Pricing and Limits Accumulations
Track:
Big Data – CS (BD2)
Room: Viger A
Moderator:
Cheng Saw, specialist, P&C actuarial research analytics, Nationwide Insurance
Speaker:
Ivelin Zvezdov, senior product manager, financial models, AIR Worldwide Verisk Analytics

Advances in big data methodologies with high degrees of granularity and transparency have made it possible to enhance the discussion on socially responsible (re)insurance underwriting practices. It is now possible to store large interdependent data sets of historical and modelled natural hazard and financial data and unify their granularity and accuracy with common geospatial and risk-type record identifiers. This is a significant component at the single insurance account level, and even more so at the larger multi-policy portfolio scale for enabling optimal and socially responsible insurance underwriting practices.

Session 3 • Influence of Cyber Risk on the P&C Insurance Market
Track: Cyber Liability – CS (CL1)
Room: Viger B
Moderator:
Edmund Douglas, AVP actuarial, QBE North America
Speakers:
Edmund Douglas
Yan Lap (Jess) Fung, senior vice-president, Willis Re Analytics

These are fascinating times for property and casualty (P&C) insurers. Product supply has outpaced demand for many insurance products, resulting in limited opportunities for organic growth. Cyber insurance is one of the few exceptions to this, where the demand for comprehensive cyber risk solutions exceeds the supply. However, insurance companies' willingness to put capital at risk is currently constrained. During the presentation, the speaker will take a closer look at the following: 1) the evolution of cyber risk and the drivers behind the surge in demand in recent years for cyber risk solutions; 2) the factors that constrain the ability of insurers to fully penetrate this market; and 3) ideas that have been proposed to mitigate the challenges.

Session 4 • IoT (Internet of Things): Why Do I Care?
Track: Internet of Things – CS (IOT2)
Room: Viger C
Moderator:
Alice Yang (FCIA), AVP, senior managing actuary, American Modern Insurance Group
Speaker:
Sharon Drawdy, VP, business initiatives consultant, strategy, innovation, and emerging technologies, Wells Fargo Insurance

In this session, we will explore the emerging internet of things (IoT) and its potential impact on the insurance industry. This is not a highly technical discussion of IoT or a deep dive into the data and analytics that are the ultimate by-products of IoT.  Rather, this session will provide an easy-to-understand explanation of IoT,  why we should care, and an imaginative look at the potential impacts to our industry and the changes for our customers, our products, our people, and our processes. Join us for a fun and interactive discussion about the future.

Session 5 • Climate Change and CAT Models
Track: Climate Change–CS (CC1)
Room: Ballroom
Moderator:
Heidi Wang, senior manager, AIR Worldwide
Speakers:
Peter Sousounis, assistant vice-president of research, director of meteorology, AIR Worldwide
Jeff Waters, manager, model product management, Risk Management Solutions

Climate change has received considerable attention in the past year and some regions, including Canada, are being impacted more than others. The National Oceanic and Atmospheric Administration (NOAA) declared 2015 the warmest year on record globally and the 2015 United Nations Climate Change Conference in Paris negotiated a global agreement on the reduction of carbon emissions. So what does climate change mean for the insurance industry? Join us for this engaging presentation on climate change and the models needed to evaluate its effects.

11:30 – 13:00     Luncheon

13:00 – 14:15     Concurrent Sessions

Session 6 • Social Media Analytics in P&C: Already Over or Just Beginning?
Track: Big Data – CS (BD3)
Room: Viger A
Moderator:
Cheng Saw, specialist, P&C actuarial research analytics, Nationwide Insurance
Speakers:
Naomi Goldapple, VP, business development, Nexalogy
James Weiss, actuary, analytics and data solutions, ISO, a Verisk Analytics Company

Earlier this year, Forbes published an article debating whether “the era of social media analytics is coming to an end” due to reduced data accessibility. At the same time, National Public Radio (NPR) and others have recently explored the extent to which social media footprints could supplement the traditional credit history, potentially improving financial inclusion across the globe. In this session, we will debate whether the era of social media analytics in P&C has ended before it ever truly began, as well as examine best practices to utilize web data for more informed risk-related decision-making.

Session 7 • Using a Model-Based Systems Engineering Approach to Quantify Cyber Risks
Track: Cyber Liability – CS (CL2)
Room: Viger B
Moderator/Speaker:
Stephen Watkins, vice-president and chief security strategist, G2 Ops

G2 Ops (G2) developed a model-based systems engineering (MBSE) environment for critical infrastructure communications, vastly enhancing systems engineering collaboration and data management. The MBSE tool has improved these environments’ ability to manage critical communications infrastructure. This session is designed to share the speaker’s experience protecting critical infrastructure by employing MBSE techniques. Attendees will receive a high-level overview of G2's threat-modelling capability while experiencing a live demonstration of its threat model in action. In addition, the speaker will share how modelling threats in this way has helped identify risk in data management environments and establish a more holistic cyber risk management program.

Session 8 • Data-Driven IoT Opportunities and the Many-to-Many Problem
Track: Internet of Things – CS (IOT1)
Room: Viger C
Moderator:
Alice Yang (FCIA), AVP, senior managing actuary, American Modern Insurance Group
Speaker:
James Roche, vice-president, product management, Verisk Insurance Solutions

Within the next decade, the internet of things (IoT) is expected to deliver an unprecedented amount of data to the insurance industry. Leading companies are crafting strategies to use this data across their entire value chain. From customer engagement to underwriting and from pricing to claims, the value of the IoT isn't limited to a single business unit. The challenge for insurers is to obtain IoT data at scale and integrate the information into myriad workflows.

Session 9 • Implications of the Sharing Economy for the Insurance Industry
Track: Special Topics – CS (ST3)
Room: Ballroom
Moderator:
Houston Cheng (FCIA), senior manager, KPMG
Speakers:
Jason Alleyne (FCIA), COO and executive vice-president, Besurance Corporation 
Houston Cheng

Peer-to-peer technology has the ability to completely displace traditional businesses and operations. The emergence of the sharing economy through companies like Uber, Airbnb, and Lyft, has disrupted many industries. Insurance is no different. This session will help actuaries stay ahead of the curve with an overview of some of the early companies in the peer-to-peer insurance space. Gain a deeper perspective of how technology platforms are creating new and innovative ways for traditional insurers to better appeal to the under-insured markets. At the conclusion of the session, attendees will be able to understand the concepts of the sharing economy, explain the implications of peer-to-peer technology and disruption to the insurance industry, and identify opportunities to utilize peer-to-peer platforms to better appeal to the under-insured markets.

14:15 – 14:30   Refreshment Break

14:30 – 15:45   Concurrent Sessions

Session 10 • The Reaction of Primary Insurance to Climate Changes
Track: Climate Change – CS (CC3)
Room: Viger A
Moderator:
Heidi Wang, senior manager, AIR Worldwide
Speakers:
Frédérick Guillot, manager, research and innovation, The Co-operators
Sylvain Nolet (FCIA), VP P&C pricing and segmentation, The Co-operators

Over the last few years, climate changes have been a central issue for property and casualty (P&C) insurers. At The Co-operators general insurance, risks associated with climate changes are positioned as critical for the organization, and many measures have been undertaken recently to understand and manage them. Moreover, top management identified significant gaps in the financial security of Canadians related to climate changes. One example is the absence of insurance coverage for flood in Canada. In this presentation, we will review how climate changes are now affecting the P&C insurance environment. We will also highlight initiatives we undertook in response to climate changes. 

Session 11 • Wellness Data, the Next UBI
Track: Internet of Things – CS (IOT3)
Room: Viger B
Moderator:
Fiona So (ACIA), actuarial consultant, Office of the Superintendent of Financial Institutions
Speakers:
Lin Xing, lead analytic scientist, Verisk
Chris Stehno, director, Deloitte

Sleeping on the job has never been a fast track to success, but sleeping on the way to the job may lead to an early and unscheduled retirement. Research found that more than one-in-five fatal car accidents in the United States involves a drowsy driver.  

Property and Casualty (P&C) insurers have long offered discounts to policyholders who attend defensive-driving courses or submit to telemetric examination of their driving habits with usage-based insurance (UBI) devices. Unfortunately, those approaches achieve only limited success because they focus on behaviours surrounding the insured asset, and not a policyholder's larger decisions about wellness. A more effective approach might address how to minimize underlying risk factors that cause or contribute to P&C losses.
  
This session will bring various perspectives on the relationship between wellness data and property and casualty risk, and illustrate how P&C insurers may learn from life insurers and potentially apply modelling to new data sources such as wearables to help improve underwriting and marketing.

Session 12 •  Preparing for Disruptive Change. The Age of Autonomous Vehicles?
Track: Automated Vehicles – CS (AV1)
Room: Viger C
Moderator:
Robin Harbage, director, Willis Towers Watson
Speakers:
Robin Harbage
Nate Loughin, actuarial senior associate, KPMG Advisory

We are at the dawn of the most significant evolution to road transportation since the first mass-produced car rolled off the assembly line. The widespread adoption of autonomous vehicles is possibly much closer than many people originally predicted. How will autonomous vehicles change the risks associated with transportation? What other challenges does this potentially disruptive change have for insurers and their business models?  What should actuaries do to prepare for the challenges that lie ahead?

Session 13 • Big Data in the Insurance Sector 
Track: Big Data – CS (BD1)
Room: Ballroom
Moderator:
Cheng Saw, specialist, P&C actuarial research analytics, Nationwide Insurance
Speaker:
Chunpong Woo, consultant, Willis Towers Watson

 Presently, genuine big data is less prevalent in the insurance sector than in some other industries, but there is significant value in smart analytics via data set linkage and penetration. External data enrichment, telematics, the internet of things (IoT), and clever insurance customer apps will shift the paradigm. Smart analytics will then shift towards what data to keep and how to remove the noise.
 

16:00 – 17:30 General Session

Session 14 (General) • Digitization: Transforming the Risk, Liability, and Property-Casualty Insurance Arena
Track: General Sessions (GS2)
Room: Ballroom
Moderator:
Jeffrey Baer (FCIA), manager, advanced analytics, Economical Insurance
Speakers:
James Dorion, chief claim officer, U.S. casualty and specialty lines, Marsh
Claire Louis, president, Strategic Insurance and Risk Solutions
H. Michael O'Brien, partner, Wilson Elser
Alan Walker, senior vice-president, global lead, digital insurance, Capgemini Consulting

Digitization is fundamentally changing the way business is done across many industries: manufacturing, transportation, supply chain/logistics, automotive, healthcare, and energy, to name just a few. This is causing businesses to re-examine long-accepted approaches on how they create and service products. As risk management partners with these businesses, property and casualty insurers also must consider if their existing products and services remain relevant in the digital age. While a number of insurers offer cyber liability insurance products to address certain consumer data breach risks, few insurers offer policies that address other types of liability risks to which digitization is giving rise, such as the following: hacker access to and control of vehicle braking, steering, and acceleration systems; driverless vehicles that make decisions that injure or damage third parties; and the failure of embedded sensors resulting in catastrophic bodily injury and property damage. This creates potential coverage gaps. Unless insurers seek to understand such risks and seize the opportunity to develop new insurance products and services to address them, policyholders will, out of necessity, look to alternative risk financing markets or elect to self-insure. To remain in the game, insurers should be open to transforming their business model.

17:30 – 18:30   Reception

19:00           Dinner Group

Friday, October 28, 2016

07:15 – 12:00      Registration and Information Desk 

07:15 – 08:00       Continental Breakfast 

08:00 – 09:30      General Session

Session 15 (General) • Fowl Weather
Track:
 General Sessions (GS3)
Room: Ballroom
Moderator:
Robert Curry, actuarial product director, personal property, Insurance Services Office
Speaker:
Alan Roth, chief risk officer, Advanced Fusion Systems

Chicken Little said “The sky is falling.” He was right. Black swans have become ubiquitous yet we are doing very little about them. Too many of us keep our heads buried in the sand. 

Let’s look at climate change, solar storms, nuclear proliferation, cyberwarfare, and water scarcity. I ask you actuaries, how do you deal with major risks that are somewhat amorphous? You need numbers to crunch but you’re given very little to work with. Predictions come from many sources but can be too vague and misleading. Whom do you trust? I’ll be asking you questions regarding all of these topics: climate change; space weather and electromagnetic pulses (EMP); and cyberwarfare.

09:30 – 09:45      Networking Break

09:45 – 11:00       Concurrent Sessions

Session 16 • Modelling Uncertain Futures
Track: Climate Change – CS (CC2)
Room: Viger A
Moderator:
Betty-Jo Walke (FCIA), Canada actuarial pricing team lead, Zurich Canada
Speakers:
Olivier Bahn, director, Department of Decision Sciences, HEC Montréal
Karen Lockridge (FCIA), principal, Mercer
Caterina Lindman (FCIA), actuary, inforce pricing

Mr. Bahn will analyze different climate policies using energy/economy/environment (E3) models, and share specific research outcomes. Ms. Lockridge will discuss a research project modelling the investment risks and opportunities related to climate change and recent developments regarding climate-related financial disclosure. Ms. Lindman will present the Actuaries Climate Index.

Session 17 • Where Cyber Security Meets Insurance: Challenges Presented and Opportunities Created
Track: Cyber Liability – CS (CL3)
Room: Viger B
Moderator: 
Ying Andrew, vice-president and actuary, Ironshore Insurance  
Speakers:
Gerry Gill, senior lawyer, Dolden Wallace Folick
Joshua Pyle, senior principal actuary, cyber insurance, Symantec

This session will feature a panel discussion on the relatively recent emergence of cyber risk and a corresponding cyber insurance market, the challenges presented to insurers by this new and dynamic landscape, and the intersection of cyber security efforts and traditional insurance practices in helping to address insurer uncertainty in writing cyber risk. The session will focus both on current progress addressing this need as it pertains to a comprehensive product suite that can be used by insurers, as well as the perspective of an end user in using the models to their fullest potential. Speakers come from an insurance background with experience spanning quantitative research and analysis, model creation, and insurance underwriting. 

Session 18 • Drones: Business Opportunity or Disruptor?
Track: Special Topics – CS (ST1)
Room: Viger C
Moderator:
Jeffrey Baer (FCIA), manager, advanced analytics, Economical Insurance
Speakers: 
Nellie Root, vice-president, treaty casualty, Swiss Re 
Lisa Willenegger, liability underwriting specialist, Zurich Canada

This presentation challenges participants to consider whether the drone phenomenon that we are experiencing in today's market is a business opportunity or just a disruptor that will fade away once the novelty wears off. The presenters will walk you through a brief history of drones, present and potential drone uses, and global drone regulations with a focus on the U.S. and Canada. Finally, they will discuss the insurance market reaction to drones today, providing insights into whether or not drones are a disruptor or in fact a business opportunity.

11:00 – 11:15       Networking Break

11:15 – 12:30       Concurrent Sessions

Session 19 • The Impact of Big Data in the Role of Future P&C Actuaries
Track:
Big Data – CS (BD4)
Room: Viger A
Moderator:
Cheng Saw, specialist, P&C actuarial research analytics, Nationwide Insurance
Speakers:
Frédérick Guillot, manager, research and innovation, The Co-operators
Carl Lambert, vice-president, national P&C business intelligence, The Co-operators

Pricing using only historical data is no longer sufficient and not even possible in some cases like emerging risks.  

In this presentation, you will see how we implemented a culture of big data in every aspect of actuaries’ work at the Co-operators. The presentation will include concrete examples throughout. 
Attendees should leave the conference with a lot of new ideas that are easy to implement, not costly, and attractive to executives.

Session 20 • The Ethics of Driverless Cars
Track: Automated Vehicles – CS (AV2)
Room: Viger B
Moderator:
Christopher Fievoli (FCIA), staff actuary, communications and public affairs, CIA
Speaker:
Frank Grossman (FCIA), principal and actuary, Linden Grove Group

The advent of driverless cars has been widely heralded as a good thing. Fewer accidents resulting in less severe injuries and damages and fewer fatalities, as well as improved data and more equitable ratemaking, are some of the anticipated benefits of driverless technology. But what about the ethical implications of greater reliance on self-driving vehicles in the future? The issues associated with driverless cars transcend their contribution to the prevailing car culture in Canada and the United States, including their carbon footprint and basic environmental sustainability. Just how well will computerized or algorithmic decision-making deal with high stakes life and death decisions in real time? The pitfalls of conventional cost-benefit analysis will be examined, contrasting traditional utilitarianism with more contemporary virtue ethics, and touching base with ethical thinkers such as Philippa Foot and Thomas Aquinas along the way.

Session 21 • Food as Medicine
Track: Special Topics – CS (ST2)
Room: Viger C
Moderator:
Betty-Jo Walke (FCIA), Canada actuarial pricing team lead, Zurich Canada
Speakers:
Ken Beckman, vice-president and actuary, CSI Life Insurance Company
Caterina Lindman (FCIA), actuary, inforce pricing

Ms. Lindman and Mr. Beckman will host a workshop on food as medicine, covering the following aspects: a whole foods, plant-based diet is effective in preventing, arresting the progression of, and even treating chronic illness; research showing the efficacy of whole plant foods in preventing or arresting certain diseases (e.g., cancer, heart disease, obesity, diabetes); case studies of workplace interventions; and barriers and drivers for people to adopt this way of life. No prior knowledge on these topics is assumed or required.