Actuarial Innovation & Technology Insurance Regulatory Issues in the US
Background and Purpose
This project seeks to review and highlight the current US regulatory atmosphere for insurance ratemaking, and the actuarial and statistical techniques being used and considered by insurance companies and reviewed by state insurance authorities.
The Actuarial Innovation & Technology Program Steering Committee (AITPSC) is seeking researchers to produce a report that highlights the intersection of US insurance ratemaking and analytics techniques in advanced modern rating systems. The report should consider the evolution of the product filing process and evolving regulation with the emergence of predictive analytics and Generalized Linear Models for rating. The report should highlight the current environment and emerging issues, the types of variables allowed to be used in rating, and provide from a statistical perspective the concepts considered in order to be used in a rating system, and not be seen as a proxy for disallowed rating variables. The report would need to be ready to be released no later than April 1, 2019.
To facilitate the evaluation of proposals, the following information should be submitted:
- Resumes of the researcher(s), including any graduate student(s) expected to participate, indicating how their background, education and experience bear on their qualifications to undertake the research. If more than one researcher is involved, a single individual should be designated as the lead researcher and primary contact. The person submitting the proposal must be authorized to speak on behalf of all the researchers as well as for the firm or institution on whose behalf the proposal is submitted.
- An outline of the approach to be used (e.g. literature search, model, etc.), emphasizing issues that require special consideration. Details should be given regarding the techniques to be used, collateral material to be consulted, and possible limitations of the analysis.
- A description of the expected deliverables and any supporting data, tools or other resources.
- Cost estimates for the research, including computer time, salaries, report preparation, material costs, etc. Such estimates can be in the form of hourly rates, but in such cases, time estimates should also be included. Any guarantees as to total cost should be given and will be considered in the evaluation of the proposal. While cost will be a factor in the evaluation of the proposal, it will not necessarily be the decisive factor.
- A schedule for completion of the research, identifying key dates or time frames for research completion and report submissions. The AITPSC is interested in completing this project in a timely manner. Suggestions in the proposal for ensuring timely delivery, such as fee adjustments, are encouraged.
- Other related factors that give evidence of a proposer's capabilities to perform in a superior fashion should be detailed.
The AITPSC will appoint a Project Oversight Group (POG) to oversee the project. The AITPSC and POG are responsible for recommending the proposal to be funded. Input from other knowledgeable individuals also may be sought, but the AITPSC and POG will make the final recommendation, subject to SOA leadership approval. The SOA's Research Actuary will provide staff actuarial support.
Any questions regarding this RFP should be directed to Dale Hall, SOA Managing Director of Research, phone: 847-273-8835; email: email@example.com.
Notification Of Intent To Submit Proposal
If you intend to submit a proposal, please e-mail written notification by December 7, 2018 to Korrel Crawford.
Submission Of Proposal
Please e-mail a copy of the proposal to Korrel Crawford.
Proposals must be received no later than December 21, 2018. It is anticipated that all proposers will be informed of the status of their proposal by January 11, 2019.
Note: Proposals are considered confidential and proprietary.
The selection of a proposal is conditioned upon and not considered final until a Letter of Agreement is executed by both the Society of Actuaries and the researcher.
The SOA and AITPSC reserve the right to not award a contract for this research. Reasons for not awarding a contract could include, but are not limited to, a lack of acceptable proposals or a finding that insufficient funds are available. The SOA and AITPSC also reserve the right to redirect the project as is deemed advisable.
The SOA and AITPSC plan to hold the copyright to the research and to publish the results with appropriate credit given to the researcher(s).
The SOA and AITPSC may choose to seek public exposure or media attention for the research. By submitting a proposal, you agree to cooperate with the SOA and AITPSC in publicizing or promoting the research and responding to media requests.
The SOA and AITPSC may also choose to market and promote the research to members, candidates and other interested parties. You agree to perform promotional communication requested by the SOA and AITPSC, which may include, but is not limited to, leading a webcast on the research, presenting the research at an SOA meeting, and/or writing an article on the research for an SOA newsletter.