Claude Penland: Actuary & Partner, Ezra Penland Actuarial Recruitment

The Evolving Actuary: Quote excerpts by Sally Ezra, discussing new geographical actuarial markets, areas of practice, executive management and the actuaries of tomorrow.

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“The Evolving Actuarial Workplace: Change is coming. Are you on top of all the contingencies?”

Insurance, Risk, Actuarial and Web News Daily….Publisher of the Industry’s Leading Salary Surveys: ClaudePenland.com

(If you’re unable to reach that link, here is the ad.)

U.S. Actuaries Should Take Note of Solvency II’s Potential Ramifications
By Claude Penland, ACAS, MAAA

Solvency II is a set proposed regulations for insurers operating in the European Union. In many cases, Solvency II will increase the amount of surplus that insurers must hold by 2013. So what are the implications of Solvency II for actuaries in the U.S.? This article offers a broad-stroke approach to quite complicated issues. It is my modest hope in writing it that U.S. actuaries will start paying more attention to these issues.

Read the rest of the article in the May 2011 Actuarial Review…

An Ounce of Prevention: Catastrophe Risk Trends in Insurance, Finance, and Modeling
by Claude Penland, ACAS, MAAA

It’s estimated that there was over $250 billion of economic loss worldwide associated with catastrophes in 2010, with $38 billion in insured loss. The cause was a succession of meteorological evils of almost Biblical proportions: Five severe weather events (tornadoes, hail, severe thunderstorm winds), one winter-based storm event (snow, icing, cold temperatures, and damaging winds), two earthquake events, and two flood events, layered on top of lesser winter storms, severe weather, flooding, tropical cyclone activity, earthquakes, and wildfires.

Looking ahead, the Tropical Meteorology Project at Colorado State University forecasts the 2011 hurricane season will be exceptionally active. It’s been five years since a major hurricane struck the U.S. coast. Are we due? And, more importantly, what should we do?

Read the rest of the article as published in Contingencies, May/June 2011 issue.

(If you have trouble with that link, the article is available via .pdf as well.)

Contingencies, the magazine of the American Academy of Actuaries, is out with their May/June 2011 issue.

See the ClaudePenland.com ad on Page 1.

Also see my Catastrophe Risk Trends article in the same issue.

The Art of War, by Charlie Sheen and Sun Tzu, by Claude Penland
Ten Quotes Show How Sun Tzu and Charlie Sheen Were Separated at Birth

“Secret operations are essential in war; upon them the army relies to make its every move.” – Sun Tzu

“Ready for my next fastball, world? PLAN BETTER Applies to everything where an excuse now sits. Try it. U won’t be wrong. Ever.” – Charlie Sheen

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“Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.” – Sun Tzu

“The only thing I’m addicted to right now is winning.” – Charlie Sheen

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“You have to believe in yourself.” – Sun Tzu

“I will not believe that if I do something then I have to follow a certain path because it was written for normal people. People who aren’t special. People who don’t have tiger blood and Adonis DNA.” – Charlie Sheen

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“Can you imagine what I would do if I could do all I can?” – Sun Tzu

“C’mon bro, I won best picture at 20. I wasn’t even trying. I wasn’t even warm.” – Charlie Sheen

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“Pretend inferiority and encourage his arrogance.” – Sun Tzu

“I’m tired of pretending I’m not a total bitchin’ rock star from Mars.” – Charlie Sheen

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“What is of supreme importance in war is to attack the enemy’s strategy.” – Sun Tzu

“CBS picked a fight with a warlock.” – Charlie Sheen

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“If you are far from the enemy, make him believe you are near.” – Sun Tzu

“There’s a new sheriff in town. And he has an army of assassins.” – Charlie Sheen

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“Know your enemy and know yourself and you can fight a hundred battles without disaster.” – Sun Tzu

“I fire back once and this contaminated little maggot can’t handle my power…I wish him nothing but pain…clearly I have defeated this earthworm with my words…imagine what I would have done with my fire-breathing fists.” – Charlie Sheen

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“Opportunities multiply as they are seized.” – Sun Tzu

“@iamdiddy Get dressed my man… sending the driver..!” – Charlie Sheen

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“The quality of decision is like the well-timed swoop of a falcon which enables it to strike and destroy its victim.” – Sun Tzu

“Every plan I have is the best plan in the room.” – Charlie Sheen

Potential Solvency II Insurance Regulations Ramifications, by Claude Penland
“Solvency II” is the Name for the Proposed Regulations for Insurers that Operate in the European Union

This article will cover some potential Solvency II ramifications and concerns. “Solvency II” is the name for the proposed regulations for insurers that operate in the European Union and which, in many cases, will increase the amount of surplus that insurers must hold by 2013.

These requirements’ complexities may drive some insurers and reinsurers to outsource their asset management and abandon captive insurers. Under Solvency II, bond holdings are strongly encouraged, and equities, real estate and alternative assets are discouraged due to increased surplus capital requirements if one holds risky assets. Some are even concerned that bond yields will be driven artificially low by the increased insurer demand for bonds.

There are not enough regulators with appropriate experience. However, the European Insurance and Occupational Pensions Authority has begun additional regulatory training, and expects to hire 70 to 90 people by 2014. Employees with the appropriate skills, especially actuaries in Ireland, UK, USA and other regions, have seen their compensation increase by quite a lot.

Companies have had their Solvency II compliance costs add up. For example, Lloyd’s managing agents will have spent at least $400 million on compliance by 2013. Worldwide compliance costs are estimated to be $4 billion. Some have argued that International Financial Reporting Standards and Solvency II regulations unfairly affect businesses twice and overlap.

Solvency II regulators would like those subject to Solvency II to be prepared, in the aggregate, for approximately a $50 billion catastrophe. However, several reinsurance brokers have said that catastrophe risk is not accurately calculated within the ongoing regulations. That they do not reflect the increasing complexity that catastrophe risk modelers have already baked into their work. Under proposed rules, Lloyd’s would need to double their catastrophe reserves.

Pension funds do not believe that they should be subject to Solvency II rules, while many insurers would prefer that pension funds be held equally accountable. The rules also have many implications for private equity and labor outsourcers.

An increase in redomiciles, mergers and acquisitions are expected due to these regulations. Japan, Bermuda and Switzerland are presently undergoing equivalency tests with the European Union. Areas such as Guernsey have elected to forego equivalency and instead chosen to stand alone. German insurers and reinsurers have recommended an outright overhaul of the rules, as they will have disproportional effects on smaller firms.

111 Important Twitter Feeds for Insurance and Reinsurance Professionals,
by Claude Penland
Insurance Periodicals, Columnists, Catastrophe Risk, Reinsurance News and Actuaries

If you are on Twitter and you are in the insurance business, these are 111 Twitter feeds that you will probably want to follow to stay on top of industry news.

Was an important insurance-related Twitter feed overlooked?  Tell me about it at ClaudePenland.com/contact.

The list:

1. 4insurancenews – Insurance news

2. actpub – The Actuary publisher

3. actuarialpost – Actuarial Post

4. actuarialtweets – Actuarial Tweets

5. actuary_dot_org – American Academy of Actuaries

6. actuary21c – 21st Century Actuary

7. actuaryjp – Japanese pension actuary

8. actuarymole – Actuary mole

9. actuarynews – Actuarial news

10. aiadc – American Insurance Association

11. atlasmagazine – Atlas Magazine

12. artemisbm – Alternative risk transfer news

13. bigivu – Property/casualty news

14. brokingliz – Insurance reporter

15. brokingmartin – Insurance broker

16. businsmagazine – Business Insurance

17. casact – Casualty Actuarial Society

18. catrisk – Global catastrophe info

19. catrisky – Catastrophe risk news

20. ccactuaries – Conference of Consulting Actuaries

21. cdnunderwriter – Canadian Underwriter

22. diamondadvisory – Insurance news

23. dingramerm – Enterprise risk management

24. disastersalerts – Disasters Alerts

25. earthquakesfeed – Earthquake news

26. eddie_smith – US actuary

27. eqecat – Catastrophe modeling

28. etinsurance – Economic Times India

29. ft – Financial Times

30. ftfinancenews – Finance News

31. globalreins – Global Reinsurance

32. globalrisks – Global Risks

33. _INN – Insurance networking

34. ifawebnews – Insurance news

35. iii_research – Insurance Information Institute

36. iiiindustryblog – Insurance Information Institute

37. iiiorg – Insurance Information Institute

38. ijournal – Insurance Journal

39. innovaterisk – Innovation of Risk

40. insheadlines – Insurance Headlines

41. insnewsnet – InsuranceNewsNet

42. instimesnews – Insurance Times

43. instrends – Insurance Trends

44. insurance – Insurance news

45. insurance_alert – Insurance Law News

46. insurance_day – Insurance Day News

47. insuranceage – Insurance Age

48. insurancebod – Insurance editor

49. insuranceforums – Insurance Forums

50. insuranceinside – Insurance editor

Press Release: Risk and Insurance Article Archive Announced at ClaudePenland.com/multimedia

February 18, 2011 – Pittsburgh, Pa. – Claude Penland, Associate of the Casualty Actuarial Society with twenty years of insurance industry experience, announces his new article archive at ClaudePenland.com/multimedia.

All pieces are written by Claude Penland, with many additional risk and insurance articles planned. Informative pieces included in the archive include:

-10 Prominent Influenza Pandemic Models: Death, Disease and Economic Loss Modeling

-20 Insurance Trends to Watch

-More Insurance Trends to Watch for Actuaries, Underwriters and Claims Personnel, Part 2

-2011 Web Trends, Including Social Networking and Venture Capital

-An Exciting Time to Consider the Microinsurance Market

-Annual Property and Casualty Reinsurance Salary Survey

-Handy Executive Recruitment and Job Hunting Tools

-Health Insurance Compensation Survey at Top 10 United States Insurers

-Life Insurance Salaries at the Top Among CEO’s, Chairmen and Others

-Pension Risk Trends: Companies, Governments, Accounting, Oh My

-Predictive Modeling for Actuaries: Eight Great PowerPoint Presentations and Articles

-Property and Casualty Insurance Salaries in the C-Suite

-Recent Activity Among Insurance Company Startups and Branch Operations

-Recent Activity in the Global Reinsurance Market

-Recent Activity in the Takaful (Islamic Insurance) Market

-So Why Do Job Hunters Use Executive Recruiters?

-Social Networking for Insurance Professionals on LinkedIn, Parts One, Two, Three, Four and Five

-Ten International Emerging Risks for Insurers and Reinsurers

At ClaudePenland.com, Claude Penland, casualty actuary and webmaster, writes at least six times daily about international risk, insurance, financial and web trends. To subscribe to Claude’s daily digest, visit ClaudePenland.com/subscribe.

Claude Penland
claude@claudepenland.com
ClaudePenland.com