The seminar provided attendees with insights into various pricing and monitoring techniques as well as market trends and observations. 

A brief overview of the presentations is given below:

• Graeme Adams kicked off the day with a market overview, highlighting recent trends in the personal lines insurance market and providing insights into the future of motor, home and CTP insurance.
• Dion Oryzak illuminated the elements behind effective competitor price monitoring, highlighting potential pitfalls of looking at average premiums, and discussed how to use machine learning techniques to discover complex interactions quickly and easily.
• Nelson Henwood described the mission of price elasticity modelling as “separating and quantifying the underlying propensity and price effects by segment”. In his presentation, he explored the model inputs, modelling process and use of the outputs to enhance pricing decisions
• Tim Andrews, Keith Almeida and Jon Tindall explored hot topics emerging from the US and European markets, focussing on topics which are relevant to Australia. These included the pricing of perils, the use of external data, and portfolio optimisation.
• Looking at historical weather cycles, Tim Andrews mused what the weather will be like next year, while Shona Vij discussed elements of building a flood risk model, including how to fill in the ‘gaps’ in the National Flood Information Database.
• John Yick demonstrated the importance and relevance of external data sources, illustrating how its inclusion can improve the predictive power of models.
• Colin Brigstock delved in to the complexities of pricing for profitable growth, and provided insight on a process to align proposed price changes with business objectives in a controlled fashion.

New to the Pricing Seminar this year were interactive panel sessions.

• Nelson Henwood chaired a session to discuss and explore the usage of social media in the insurance space. The panel consisted of Lisa Wade (Director of Stamford Interactive), Darren Robb (Senior Manager – Research, Allianz), Nick St John (Head of Digital Marketing, Buzz Insurance) and Joel Maloney (Director, The Defectors).
• Tim Andrews chaired a session discussing the history, and what potentially lies ahead in the realm of flood insurance. The panellists consisted of Graeme Adams (former General Manager of International Business, IAG), Sean West (Manager Research and Development for PI Business Pricing, Suncorp) and Karl Sullivan (General Manager – Risk and Disaster Planning, ICA).

On social media, the flow of different ideas from different perspectives was refreshing, as the panel explored potential opportunities for insurers. Later, the flood debate was illuminated with discussions surrounding issues of affordability and fairness, as well as practicalities for insurers. Thank you to all the panellists for lending their expertise, providing a valuable contribution on the day.

All the presentations can now be found in Publications.

CERA is an international Enterprise Risk Management (ERM) qualification, with 13 actuarial associations recognising the qualification, including the Actuaries Institute in Australia. The value and difficulty of the qualification is demonstrated by only 28% of Australian members taking the course achieving a pass since the qualification commenced in 2010.

Brett noted: “The exam was challenging, having not studied in over 10 years. However, the course was valuable as it allowed me to deepen my existing ERM knowledge and experience. ERM is important as all companies seek to improve how they strategically manage risk and their competitive advantage. This is particularly true for insurers, given the emerging regulatory focus on risk management which they face e.g. APRA in Australia and Solvency II in Europe.”

Brett has served on the Institute’s Risk Management Practice Committee for several years now and leads Finity’s ERM practice.

Finity Managing Director Estelle Pearson commented: “The CERA qualification provides a wider understanding of risk beyond traditional actuarial areas, including softer risk management issues such as risk culture. Having this skill set can only help Finity serve its clients. I would like to congratulate Brett on his achievement. With many of Finity’s younger staff taking this course and developing their ERM skillset I also look forward to Brett mentoring and supporting them.”

For more information on the CERA qualification please visit the Actuaries Institute website.

Thanks very much for letting us know.

The Finity Team

Story and picture from John Heath’s InsuranceNewsAustralia.com issue of 11 November 2011

Finity joined with other members of the insurance and finance services sectors to Beat the Bosses and earn the CREATE Foundation $120,000 for needy children and young people in out-of-home care – foster, residential or kinship care.

On Wednesday 9 November 2011 hundreds of supporters gathered at the The Ivy, Sydney, for the annual insurance and finance services supported “Beat the bosses” trivia quiz night.

They all had the one aim to improve the lives of children and young people in care.

More than 35,000 youngsters in Australia are living in care with this number increasing by 9% each year.

In its second year, the “Beat the bosses” night of networking and “nonsense with a conscience” delivered on putting the “fun” in fundraising.

The result exceeded last year’s raising with by achieving $120,000 which will go towards the CREATE Your Future program.

The 2011 “Beat the bosses” winning team was Finity, with second place to Melissa Widner’s table, and third place to AMPCI table.

This year’s supporters read like a Who’s Who of insurance and financial services. They included Stephen Dunne, MD of AMPCI, Colin Fagen, CEO Australian Operations QBE, Rob De Souza, president of Aon Benfield, David Brown, COO of Wesfarmers, Nick Kirk, CEO of Calliden, Estelle Pearson, MD of Finity, Heinrich Eder, MD of Munich Re, Niran Peiris, Chief GM at Allianz, and Shane Doyle, CEO of Zurich.

Other leaders were Mark Lingafelter, MD of Chubb, Michael Harden, CEO of Willis Re, Peter Wedgewood, MD of Assetinsure, Andrew Reeves, Partner at KPMG, Anthony Fleetwood, Acting CEO & GM – Corporate Services at Employers Mutual, Geoff Black, CEO of Investments at TAL, Lachlan McKeough, CEO of Austbrokers, Mark Senkevics, MD of Swiss Re, Noel Condon, CEO of Chartis and other senior staff members from Tokio, Berkley, PMA Solutions, Finity, Sparke Helmore, Ansvar and ARPC.

Special guests included CREATE Foundation patron, David Hill. The event was sponsored by Accenture, Steadfast and PMA Solutions.

“Our focus this year is to help young people with a care experience to reach their full potential,” said Jacqui Reed, CEO, CREATE Foundation.

“The insurance and finance services industries again came to the fore to support kids in care.

“This industry support enables us to provide young people with opportunities to experience and learn in areas they would otherwise not have been able to access.”

Opera Australia’s principal artist and CREATE ambassador, tenor Stephen Smith pushed guests to the limit of their operatic knowledge.