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1ARIA News ■ Spring 2015

Vol. 20, No. 1 American Risk and Insurance Association Spring 2015

In this Issue

1 Election Time is Here!

2World Risk and Insurance Economics Congress – Aug. 2-6, 2015

3You’re Going to Have a Great Time in Munich!

4The Ph.D. Project: A Conversation with Willie Reddic, DePaul University

5Real Reform of ACA Needs Fewer Federal Laws and More Competition

7Shining the Spotlight on Universities in the Far East

11Creating Geeks Who Understand Bucks: Demystifying Financial Engineering

12Needed Technology: From Finance Class to Finance Career

15The Institutes’ Collegiate Studies for CPCU Program

16Stealing Second in Cyber Space: High-tech Risks Can Push Creative Solutions

17George Krempley Joins Faculty at South Carolina

18 Members and Friends in the News

20Your Day with a Famous Person in History

22Risk Management and Insurance Positions

23In Memoriam: Linda Lamel and Sean Mooney

24 Executive Director Report at ARIA’s 2015 Winter Board Meeting

26 Activities of Related Associations and Affiliates

27 Members Contributing to ARIA NEWS

28 Letter from the Editor

Election Time is Here!

The Nominees

A. Richter

P. Thistle

M. Ellingsworth R. Phillips

R. Butler M. Eling

H. Gründl G. Niehaus

P. Borba J. Qiu

It’s time to vote for ARIA’s officers and directors! The Nominations Committee has proposed the following slate:

President: Andreas Richter (Ludwig-Maximilians-Universität München)

President-Elect: Paul Thistle (Univerisity of Nevada-Las Vegas)

Vice President and Program Chair: Martin Ellingsworth (Salt Creek Analytics) or Richard Phillips (Georgia State University)

Board Position 1:

Richard Butler (Brigham Young University) or Martin Eling (University of St. Gallen, Institute of Insurance Economics)

Board Position 2:

Helmut Gründl (Goethe University Frankfurt ) or Greg Niehaus (University of South Carolina)

Board Position 3:

Phil Borba (Milliman) or Joseph Qiu (Jardine Lloyd Thompson Group)

Ballots will be sent electronically to all members who paid their dues for the current year. If you prefer to receive a paper ballot, contact the ARIA Executive Office at [email protected] or call (610) 640-1997.

Please take the time to read each can-didate’s biography so you can make an informed choice. All ballots must be returned no later than 30 days after receipt. Paper ballots should be sent to ARIA, 716 Providence Road, Malvern PA 19355-3402.

Don’t forget to pay your 2015 mem-bership dues in order to participate in this important election!

2 ARIA News ■ Spring 2015

The Third World Risk and Insurance Economics Congress

Hallo zusammen! It will be an exciting time in Munich on Aug. 2-6, 2015, when the Third World Risk and Insurance Economics Congress (WRIEC) takes place. Organized by the European Group of Risk and Insurance Economists (EGRIE), with co-organizers Asia-Pacific Risk and Insurance Association (APRIA), American Risk and Insurance Association (ARIA), and The Geneva Association (GA), the 2015 WRIEC is expected to be just as sig-nificant and enriching as the first two. Our local host this year is the Munich Risk and Insurance Center at Ludwig-Maximilians-Universität (LMU) in Munich, Germany.

This conference has a full line up of edu-cational sessions and social functions. Beginning on Sunday, building on its success in Seattle (2014), the second S.S. Huebner Foundation Ph.D. Colloquium will be offered. Once again, this collo-quium will provide exceptional doctoral candidates investigating risk and uncer-tainty an opportunity to discuss their dis-sertation research with others.

On Monday morning, keynote speaker Nikolaus von Bomhard, the chairman of the board of management of Munich Re, will deliver the opening address. Jean-Charles Rochet, professor of finance, ETH Zurich, will deliver the 27th Geneva Risk Economics Lecture, entitled “Financial Frictions and Reinsurance Cycles” on Tuesday. Throughout the conference, other plenary sessions will focus on timely and relevant topics: big data, asset management and the Euro-crisis, natural catastrophes and climate change and RMI research. The final ple-nary session on RMI research will include

2014–2015 OfficersPatricia Born, President

Florida State University

[email protected]

(850) 644-7884

Andreas Richter, President-Elect

Ludwig-Maximilians-Universität München

[email protected]

+49 (89) 21802171

Paul Thistle, Vice-President

University of Nevada, Las Vegas

[email protected]

(702) 895-3856

Laureen Regan, Immediate Past President

Temple University

[email protected]

(215) 204-7264

2014–2015 Directors (Terms)Alexander Muermann (2015)

Vienna University of Economics & Business

[email protected]

+43 1 31336 4948

Richard Phillips (2015)

Georgia State University

[email protected]

(404) 413-7011

Mark J. Warshawsky (2015)

Mercatus Center at George Mason University

[email protected]

(703) 993-4922

Martin Boyer (2016)

HEC Montréal, Université de Montréal

[email protected]

(514) 340-6704

Rachel Huang (2016)

National Central University

[email protected]

+886 3 4227151 ext 66282

Stephen Mildenhall (2016)

Aon Center for Innovation, Strategy and Management

[email protected]

+65 6231 6481

Martin F. Grace (2017)

Georgia State University

[email protected]

(404) 413-7469

Kathleen McCullough (2017)

Florida State University

[email protected]

(850) 644-8358

ARIA members Patty Born, Keith Crocker, Christophe Courbage, Michael Hoy, Gene Lai and Michael Powers.

Interest in present-ing at this year’s WRIEC has broken all records, indicating a wide array of repre-sentatives from around the world who will be gathering in Munich.

The concurrent sessions will be varied and well balanced. There have been 380 papers submitted, consisting of 79 theoretical, 199 empirical, 16 experimental and 86 mixed topics. Sixty-six individuals were asked to review these papers. In total, there will be 719 reviews; as of March 26, 2015, 90% of all reviews have been submitted.

The WRIEC Organization Committee has worked hard to plan memorable social events for everyone, starting with a Sunday welcome reception in the beauti-fully decorated Lichthof of LMU’s historic Main Building, located in the heart of the city. On Monday evening, attendees and their guests are invited to an elegant State reception and dinner in the magnificent Kaisersaal (or Emperor’s Hall) at Munich Residenz, the former royal palace of the Bavarian monarchs. Listen closely and you might hear Mozart, Strauss or Wagner con-ducting a concert here! Then, a fun and rousing Bavarian Evening will be held on Wednesday at the Augustinerkeller, a land-mark beer hall known for its excellent food and great ambience. A farewell lunch will be offered on the last day.

Information on conference registration, accommodations, and sponsorship oppor-tunities, along with directions to LMU, are available at www.wriec.net. Please contact Stephanie Meyr at the Munich Risk and Insurance Center ([email protected]) if you have any questions about WRIEC. If you are interested in sponsoring the World Congress as an academic institution, please reach out to ARIA executive director Tony Biacchi at [email protected].

See you soon.....Bis bald!

Main Building at LMU


You’re Going to Have a Great Time in Munich!

A Bit of History

One of the oldest universities in Bavaria, the Ludwig-Maximilians-Universität (LMU) was founded in the city of Ingolstadt in 1472 by Duke Ludwig the Wealthy of Bavaria-Landshut. It is named after Ludwig and Prince Elector Max IV Joseph of Bavaria, who became King Maximilian I in 1806. In 1826, King Ludwig I relocated the university to Munich. LMU is now one of the leading research universities in Europe. A few notables who studied here are Nobel lau-reates Werner Heisenberg, Max Planck, and Thomas Mann.

During our conference, three special events have been planned at these historic sites:

• The Lichthof: As you walk toward the Lichthof (atrium) of LMU’s main build-ing, look down on the cobblestone ground and see the tiles commemorat-ing the White Rose (Die Weisse Rose) student resistance against the Nazi regime in 1943.

• Munich Residenz: Once home to the ruling class of Bavaria, the palace con-tains tapestries, paintings, furniture and treasures from the royal collections. The Kaisersaal, where you will be dining, is the Residenz’ largest and most impor-tant room for festivities; it was built by Duke Maximilian I in the early 17th Century.

• Augustinerkeller: One of the largest beer gardens in Munich, the Augustinerkeller opened in the early 19th Century. Two attractions are the more than 100 stately chestnut trees providing shade and keeping the garden (and beer) cool and the old cellar (lager kellar) 10 meters below ground level.

Other Nearby Places to Visit

Marienplatz: The old center of the city, comprising a pedestrian area sur-rounded by historical buildings, shops

and restaurants, is a great place to spend time and watch life go by. Every day at 11 am, noon and 5 pm, the glockenspiel (clock) in the Tower of the New Town Hall (Neues Rathaus) enter-tains visitors with a 12-15 minute show with life-sized figurines and 43 chimes.

St. Peter’s Church: Located at Marienplatz, you can climb up the tower of “Alter Peter” (Old Peter) which is 91 meters high to enjoy a 360° view of Munich and its suburbs. When the weather is clear, you will even see the Alps from up there.

English Garden: Located in the heart of the city is one of the world’s largest urban parks. Designed in the style of English landscape gardening, attractions include beautiful meadows, the Chinese Tower beer garden, a Greek-style temple (Monopteros), a Japanese tea garden, and even an artificial stream (the Eisbach) where you can go surfing!

Nymphenburg Palace (Schloss Nymphenburg): Meaning “castle of the nymphs,” this baroque palace was the main summer residence of the former rulers of Bavaria during the 17th-18th Centuries. King Ludwig II was born here. The palace, with its beautiful gardens, is easily accessible by Munich public trans-port’s tram #17 that passes through the city center.

BMW Museum: For car aficionados, the BMW automotive museum is located near the Olympiapark and offers a fascinating history of the BMW brand; tours of the plant are available. There is also a Mercedes Benz Gallery at Odeonsplatz that has a small but impressive display of this brand of cars.

Hofbräuhaus: More touristy and crowded than Augustinerkeller, the

Hofbräuhaus is a short walk from the Marienplatz. The beer hall was founded in 1589 by Duke Wilhelm V, supposedly to satisfy his “thirsty and demanding household.” Much of the Hofbräuhaus was destroyed during a bomb strike on Munich in 1944, but it has since been rebuilt to its original style.

Day Trips from Munich

Neuschwanstein Castle: Situated in the rugged Alpine foothills is one of the most visited castles in Europe. Built by King Ludwig II as a personal refuge and hom-age to composer Richard Wagner, the king actually spent little time here before he died in 1886. The Sleeping Beauty Castle at California’s Disneyland is designed after Neuschwanstein (new swan stone).

Salzburg, Austria: In less than two hours from Munich, you can be in Salzburg visit-ing Mozart’s birthplace, the romantic Old Town, Mirabell Gardens or the fortress.

Eagle’s Nest: Perched on a mountain sum-mit in Obersalzberg, the “Eagle’s Nest” was built as a teahouse for Adolf Hitler’s 50th birthday (accessible by elevator). At the foot of the mountain, history buffs will also want to visit the Documentation Center that provides a fascinating history of the area and the Nazi occupation and entry into part of the vast underground bunker system.

Neuschwanstein Castle near the town of Füssen in southwest Bavaria


A Conversation with ARIA Member Willie Reddic, DePaul University, about The Ph.D. Project and Moreby Diana Lee, ARIA NEWS Editor

“The Ph.D. Project” is an award-winning nonprofit organization established by the KPMG Foundation for the purpose of increasing minority faculty and gradu-ates in business schools. There are now more than 1,200 minority business Ph.D. professors across all business disciplines throughout the U.S., about four times more than when The Ph.D. Project first began in 1994. ARIA NEWS recently talked with ARIA member Willie Reddic about this program and learned about his journey to becoming assistant professor of accounting at DePaul University (Chicago, Ill.) and the values he hopes to pass on to his students.

ARIA NEWS: You are both an alumnus and a member of The Ph.D. Project. Tell us a bit about the program.

Willie: The Ph.D. Project is designed to increase workplace diversity by increas-ing the diversity of business school faculty who encourage, mentor, support and enhance the preparation of tomorrow’s leaders. Its goal is to have more minori-ties study business and prepare them to operate in a diverse workforce. The Ph.D. Project is nationwide and over 275 col-leges and universities participate. I joined this program because I went to their con-ference in 2002 and learned I was not the only person of color who was interested in pursuing a Ph.D.

ARIA NEWS: Describe the path you took to earn your Ph.D.

Willie: I thought about pursuing the Ph.D. before the completion of my Master of Science degree in Finance at the University of Illinois at Urbana-Champaign. During my time at Illinois, I had the pleasure of meet-ing and working directly with fellow ARIA member Dr. Jeffrey Brown. In addition to his mentoring me and helping me apply to doctorate programs, Dr. Brown served more as a friend and support system for me. I will be forever indebted to him for that.

After obtaining my master’s degree, I was interested in attending Florida State University (FSU). During my visit, I had the opportunity to meet Drs. Patrick Maroney, Jim Carson, and Ceasar Douglas. Dr. Maroney indicated to me that I needed to obtain experience in the insurance industry to be a highly desirable doctor-ate candidate for FSU’s program and I needed to improve my GMAT (Graduate Management Admission Test) score. Therefore, I thought it would be in my best interest to work for the Florida Office of Insurance Regulation. In addition to my working full time I was a part-time student taking mathematical and statistical courses at FSU and Florida A&M University to help strengthen my quantitative skills.

A year and a half later, after going through multiple rejections from other universi-ties, I was finally accepted into Syracuse University’s finance doctoral program. After my first year in the finance pro-gram, I decided that it would be in my best interest to leave Syracuse since my research agenda did not align with the finance faculty’s research agenda. At that point, Dean Mel Stith (former Dean of both the business school at FSU and school of management at Syracuse) informed me that I was not going any-where, but I needed to switch to another program. So, with the help of Syracuse Professors Joe Comprix, Randy Elder, David Harris, and Kofi Okyere (also a Ph.D. Project alumnus), I was able to transfer from the finance program to the Accounting program. Fortunately, my interest in insurance research was well received by the Accounting faculty. In

fact, they encouraged me to base my dis-sertation topic on what I observed as a regulator while working for the Office of Insurance Regulation.

I graduated from Syracuse University in May 2013, and in July 2013, I became an assistant professor at DePaul University. I now work in a profession that allows me to think freely, collaborate with great minds, and inspire others to think. I enjoy this profession because I am doing some-thing that is relevant to my interests and the world around me.

ARIA NEWS: As a business professor, which aspects of this role appeal to you most?

Willie: The role of the business professor has significantly changed over the last 20 years. In the past, professors have paved the way by creating in-depth business models, theorems and proofs, and quantitative methods that are used in today’s business world. Since most new innovation is built upon past research the professor’s role becomes even more complex. Because of this, a professor needs to be innovative and creative in his or her research. This is one aspect that appeals to me the most.

Another aspect of that appeal is the abil-ity to problem solve. Professors have to think outside the box to solve new and old problems, and also have the ability to effectively communicate the solution to others. In addition, the service aspect of being a professor is gratifying. As a profes-sor, contributing and enhancing through mentorship, teaching and community ser-vice provide a noble success in making a difference in someone’s life.

ARIA NEWS: Which aspects of being a business professor appeal to you the least?

Willie: The two aspects that least appeal to me are: 1) the publication/tenure process; and 2) the uncomfortable feeling when a student fails. The research of a business professor has to be objective based on fact and proven evidence; conversely, the approval for publication is subjective to human opinion. Equally important, it can be somewhat disappointing when a stu-

Willie Reddic


A Conversation with ARIA Member Willie Reddic, DePaul University, about The Ph.D. Project and More, continued

dent does not apply himself or herself in the classroom. There is a sense of discom-fort that is also considered an unappealing aspect of being a business professor.

ARIA NEWS: As a professor, what impact do you believe you’ll have on your students?

Willie: I will epitomize the meaning of being an effective professor. Since I am committed to excellence, I will work dili-gently to uplift and motivate my students. I will be committed to use education as a means for providing a better life for my students. Another impact I will bring to my students is why they should value their education, and actually know what it means to work for a goal.

Usually professors have a syllabus with a description of their lessons plans. The lesson plan I will implement for my stu-dents is as follows: 1) Professionalism, 2)

Building their skills, and 3) Maintaining a true interest. Professionalism is not a test – it is life. I will leverage my corpo-rate experience and adapt this undefined lesson plan in my course. In finance, having a strong quantitative background is impeccable for success; furthermore, building and providing a full understand-ing of why these skills are essential will be my objective. Finally, students occasion-ally are disengaged from keeping an inter-est with the relevant material. Therefore, I plan to use real world examples and up-to-date information to bridge the correla-tion between academia and corporate.

ARIA NEWS: Please sum up your educa-tional journey so far.

Willie: I guess I can honestly say that my life has been like a “Rocky” movie. I have been knocked down and rejected through-out my personal and academic journey.

However, I always have been taught to never give up on your dream and continue to thank God. In addition, I had a tremen-dous amount of help and support from Dr. Jeff Brown who actively mentored me and was candid with me about the Ph.D. process – to Dr. Ceasar Douglas calling me every so often to tell me to keep work-ing – to Dr. Joe Comprix allowing me to pursue a research stream (insurance) not widely published in the accounting litera-ture – and to the Ph.D. Project serving as my extended family.

I look at my journey as different phases, and this is only the beginning of my aca-demic career. As surprising as this may sound, I look forward to the new chal-lenges (the next hurdle is tenure!) and continuing to foster old and new relation-ships. In terms of a journey, I could not have asked for a better one.

Real Reform of ACA Needs Fewer Federal Laws and More Competitionby Michael A. Walters, Fellow and Past President, Casualty Actuarial Society

Michael A. Walters

All the goals of the U.S. Affordable Care Act (ACA) can be achieved by a replacement plan based on actuarial principles that have worked well in casualty insurance the past 60 years.

Affordable Care Act (ACA) is too flawed and needs to be replacedMuch has been written about the now obvious flaws of the Affordable Care Act.

It required overpriced coverage on some insureds (the young and the healthy) to pay for the underpriced remaining insureds. It also mandated extra cover-age that not everyone needed or wanted. And the promises to let you keep your insurer and your doctor were not true. Furthermore, one of its architects revealed that ACA’s flaws were so great that subter-fuge was used to sell it to the American public, e.g., you could keep your doctor and you could keep your old insurance plan. Some of these early disclosed flaws caused the President to suspend, without Congressional approval, certain features of the law that weren’t working.

In contrast to every other major social program enacted in the U.S. (e.g., Social Security, Medicare), it was jammed through on a totally partisan basis by the majority Democrats in Congress, without a single Republican vote, nor any input by Republicans in committees.

Moreover, the Supreme Court found ACA’s insurance purchasing “mandate” to

fail U.S. Constitutional standards. Instead the Court construed the penalties as a tax, not a mandate. Furthermore, by June of 2015, it may also find that the federal exchanges are not allowed to provide sub-sidies; only the state established exchang-es, as specified in the law, may do so. This may be the final nail in the coffin of ACA, as that could cause a “death spiral” of worsening adverse selection.

Yet its supporters continue to assert that, even with its flaws, it should be somehow preserved and fixed. They claim there is no sufficient alternative which would provide health insurance at an affordable price for every American. This claim is not true.

ACA can be replaced and achieve goals of availability and affordabilityThere are ways to vastly improve the old system without ACA’s major drawbacks of overarching federal control, mandat-ing coverage that not everyone wants and needs, and requiring excessive premiums on some to subsidize others. This new plan can achieve virtually all of the goals

Continued on page 6


of the original ACA to provide guaranteed access to healthcare insurance, actually controlling overall costs, and provid-ing needed subsidies to some who have affordability problems, without destroying the free market insurance system, by using proven actuarial principles.

This replacement plan actually draws upon time-tested measures in other lines of insurance. It also relies on a state-by-state regulated, but still competitive, market to offer a long-term sustainable system.

Only one new federal law is needed – tax deductibility of individual health insuranceThe new system would work by replacing ACA with only one new federal law: Make basic individual health policies fully tax deductible, even for non-itemized returns. Milton Friedman suggested this over ten years ago because group health insurance had become an anachronism. It was cre-ated by Congress during World War II as a tax advantaged way to get around wage controls. It stayed popular even after wage controls ended when workers still tended to stay with one employer a long time and enjoyed this unique tax advantage. Today’s much more mobile workforce has trouble dealing with employer-based health insur-ance’s lack of portability. In contrast, indi-vidual policies are truly portable—just like auto insurance—and can also be made guaranteed renewable.

Individual policies with higher deductibles have consumers much more involved in price and value decisions on medical proce-dures, which should control costs better—as evidenced by some success with Health Savings Accounts (HSAs). And as experi-ence has shown with hundreds of licensed auto insurers, a thriving individual policy market would promote much more compe-tition for lower costs and better service.

Use assigned risk plans – similar to auto insurance – for guaranteed accessFurther, under the new system, access to basic needed coverage, without pre-existing conditions, would be guaranteed via health insurance assigned-risk plans (ARPs) at the state level. ARPs have done

it successfully in auto insurance for years by allocating those policies equitably among insurers without competitive disadvantage. ARP insurers can pass the extra cost of underpriced mandated poli-cies on to its other policyholders with only a modest surcharge—one that is transpar-ent, unlike the subsidies unevenly buried in ACA’s overcharges. If allocated properly among voluntary insurers, even ARP poli-cies that are underpriced say by 20%, can be paid for by the voluntary market with only about a 1% surcharge, if the involun-tary market is only about 5% of the total. If 10%, then the surcharge is only 2% and equally apportioned among the voluntary market providers without a competitive disadvantage. And the public would not likely object knowing they were only pay-ing an extra 2% to provide coverage to those who couldn’t get regular access.

Use subsidies from Medicaid grants for pre-existing conditionsPre-existing conditions (PEC) are a differ-ent story and a separate method is needed to handle that problem. States would also need to separately create guaranteed PEC coverage with some subsidization. The public likes that part of ACA, but most had been unaware that the costs of PEC were going to be unevenly borne by dispropor-tionately overcharging the young and the healthy middle class. Instead, the new sys-tem pays for those who can’t afford the cost using individual premium support and/or subsidized catastrophic pools by state.

These extra benefits would be funded in the federal budget process via block grants back to the states for having ARPs and PEC coverage—for example, 20% or 25% of the allocated Medicaid taxes each state’s citizens send in to the federal government. States with meaningful tort reform would receive more. Receiving less would be those states that still have a “community rating law” preventing young people from getting low-cost, high-deductible policies.

No federal mandates of mispriced coverageThe problem of uninsured young people was fully discussed in the Supreme Court’s

broadcasted hearings on whether the fed-eral government can or should mandate overpriced coverage for the young to help pay for older insureds. The answer was the Constitution does not allow such a mandate even to mandate properly priced coverage.

Yet states can mandate coverage, just as they do for auto insurance, although many merely mandate financial responsibil-ity (FR). So a state could mandate FR on health insurance for its citizens. And some might, but without the excessively priced coverage on some to create unwarranted subsidies. Let young people buy properly priced health insurance at a fairly low cost by allowing age as a true rating vari-able. And allow catastrophe policies to be bought by young people. If they wind up in a hospital with a serious medical trau-ma, they are not then a burden to society, by having the hospital apportion those costs to other paying customers.

Use the state regulation system already in placeFinally, recognize that there already is an existing system of state insurance regulation to monitor insurer profits and solvency. That system— in place since 1945—has regulated and monitored com-petitive personal auto insurance, so that in the past ten years, total profit margins have averaged only about 4%!

About the Author:

Michael A. Walters is a Fellow and Past President of the Casualty Actuarial Society (CAS). He previously served as CAS Treasurer and Education Chairman, as well as Vice President of the American Academy of Actuaries. He has a Master’s degree in Mathematics from the University of Notre Dame. Mr. Walters has written three CAS Proceedings Papers that were on the CAS exam syllabus dealing with risk classification, homeowners ratemak-ing and catastrophe risk. He retired as a Principal of Tillinghast-Towers Perrin (now Towers Watson). Before that, he was Senior Vice President and Actuary at Insurance Services Office in New York.

Real Reform of ACA Needs Fewer Federal Laws and More Competition, continued


Shining the Spotlight on Universities in the Far East

The Far East represents an important seg-ment of the ARIA membership. Last year, approximately 10% of ARIA members taught at 39 different universities located in China, Hong Kong, Japan, Singapore, South Korea, and Taiwan. ARIA NEWS recently invited professors from these pres-tigious universities to share with readers information about their risk management and insurance (RMI) or finance programs.

This article highlights five universities located in the Far East: two are in Japan – International University of Japan (IUJ) and Tokyo Keizai University; and three are in Taiwan – Feng Chia University, National Chengchi University (NCCU), and Shih Chien University. ARIA NEWS is grateful to the following individuals for participating in this compilation: Haruyoshi Ito (IUJ); Noriyoshi Yanase (Tokyo Keizai); Chwen-Chi Liu and Chi-Hung Chang (Feng Chia); Yung-Ming Shiu (NCCU); and Lih Ru Chen (Shih Chien).

A brief description of each of these uni-versities follows:

International University of Japan (IUJ): The IUJ – a private university located in Minami-Uonuma city in Niigata Prefecture – was established in 1982; its Graduate School of International Management (GSIM) began in 1988. IUJ is unique because its students come from 30-40 countries. GSIM has 25 nationali-ties; students mainly come from East Asia, and others hail from Europe, North America, South America and Africa. The foreign students are among the elite in their countries.

GSIM does not offer a program in RMI; instead, it offers a concentration in finance in addition to management, mar-keting and IT/operations management. One-year and two-year MBA pro-

grams are also offered, along with a Master in E-Business Management. Classes usually comprise about 50 stu-dents; the number of graduates with a finance concentration ranges from 11 to 23 annually.

After receiving their finance certifications, Japanese students get placed in various financial institutions in Japan or if they are corporate-sponsored students, they will return to their original workplace (e.g., Mizuho Securities, Meiji Yasuda Insurance, Daishi Bank, etc.). The foreign students will usually return to their home country; those sponsored by their nations will typi-cally work at a governmental institution, such as the Ministry of Finance or Agency of Insurance Supervision.

GSIM has two finance professors, Haruyoshi Ito and Ming Liu. Professor Ito’s research focus is on corporate finance, corporate governance, derivatives, and risk management and insurance – specifically how corporations could improve shareholders’ value using deriva-tives and/or insurance. He has one publi-cation in The JRI. Professor Liu focuses on empirical asset pricing and international mutual fund managers’ information skills in the global market.

Tokyo Keizai University: Formerly the Okura Commerce School, Tokyo Keizai University (a private institution) was estab-

Continued on page 8

ARIA SponsorsARIA salutes its 2014 sponsors and expresses sincere appreciation for their support of risk management and insurance education in universities around the world.

Platinum Sponsors

Casualty Actuarial SocietyGeorgia State UniversityKatie School of Insurance & Financial Services, Illinois State UniversityTemple University

Gold Sponsors

Baylor University

Insurance Institute of Canada

The Institutes

Silver Sponsors

Ball State UniversityFlorida State UniversityGriffith Insurance Education FoundationS.S. Huebner FoundationInsurance Information InstituteMississippi State UniversitySt. John’s UniversitySt. Joseph’s UniversityThe University of AlabamaThe University of GeorgiaThe University of MississippiUniversity of CalgaryUniversity of Illinois at Urbana-ChampaignUniversity of Louisiana, LafayetteUniversity of Nebraska-LincolnUniversity of North Carolina at CharlotteVirginia Commonwealth UniversityWashington State UniversityWharton School, University of PennsylvaniaWilfrid Laurier University

If your school or corporation is not an ARIA sponsor yet, please consider joining the above institutions this year!

Haruyoshi Ito, International University of Japan


lished in 1902. Noriyoshi Yanase mentions that the number of RMI-related subjects offered by Japanese universities and the number of professors and lecturers in insurance-related fields have drastically decreased over the past few decades, creat-ing a crisis in the nation’s higher education system. Universities in this country have no independent departments specializing in risk management and insurance and no specific RMI degree is offered. Similarly, there are no independent departments spe-cializing in actuarial science.

Various departments at Tokyo Keizai University do offer lectures on insurance-related topics, such as life and non-life insurance, insurance law, social security/welfare and finance and insurance. In Professor Yanase’s department (Department of Marketing and Distribution), “principles of insurance” and “theory of risk management” classes are offered; about 200 and 100 students are enrolled in each, respectively. Professor Yanase is the only faculty mem-ber specializing in RMI at Tokyo Keizai University; he teaches both classes.

Upon graduation, students typically get placed in a wide variety of industries. Traditionally, major Japanese firms, including insurance companies, have built strong in-house training programs to cul-tivate a “firm-specific generalist,” that is, an employee with a wide array of knowl-edge of that particular company, the opposite of whom is a specialist for a spe-cific operation. In-house training systems

have also cultivated human resources suit-able for the actuarial profession which requires highly professional skills.

As a result, specialized education has played only a minor role for undergradu-ates. In fact, most students have found jobs unrelated to their undergraduate major or minor. Most Japanese insurance companies do not require insurance edu-cation as a criterion for employment. Hence, it does not matter in job-hunting activities whether an undergraduate stu-dent has an RMI major/minor or whether one has earned an insurance-related des-ignation – as a matter of fact, in Japan, there is no specialized qualification system related to the insurance business, such as the Chartered Property Casualty Underwriter (CPCU) program in the U.S.

Since a major/minor in RMI currently has little appeal for both students and busi-nesses, a standard curriculum based on academic contexts (e.g., economics, finance) must be developed for a viable insurance education program in Japan. It is hoped that steps will be taken to begin this process in the near future.

Professor Yanase’s areas of interest are: cor-porate pension and corporate financing decision; corporate demand of insurance, reinsurance, hedging; and corporate gover-nance in insurance industries. He serves on the APRIA Board of Governors (2013-15). Most recently, his paper on the Japanese RMI education system (collective writing) was published in the Journal of Risk Education (Vol. 5, No. 1, 2014). The title is “New Challenges to Broadening Undergraduate Risk Management & Insurance Education in Japan: Effective Use of Seminar Classes on a Nationwide Scale.”

Feng Chia University: Feng Chia University is a private insti-tution located in Taichung, Taiwan; its Department of RMI was initiated

in 1963. The graduate program of the Department, founded in 1971, was the

first program in the country with insur-ance specialization at the graduate level. Due to its long history in fundamental as well as advanced insurance education, the Department has cultivated thousands of insurance professionals. Many alumni of the Department have occupied important positions in the Insurance Bureau as well as insurance firms in Taiwan, and some also serve in other universities with an insurance department or program. The Department is currently subordinate to the College of Finance, which was accred-ited by the Association to Advance Collegiate Schools of Business (AACSB) in Feb. 2014.

The Department of RMI has an undergrad-uate as well as a graduate program and grants bachelors’ and masters’ degrees. Currently there are approximately 450 and 36 students in the undergraduate and grad-uate program, respectively; around 110 and 18 students graduate with bachelors’ and masters’ degrees each year. Courses provid-ed by the Department cover a wide range of knowledge related to risk management and insurance such as life insurance, prop-erty-liability insurance, social insurance, pension plan, risk assessment, risk financ-ing, and insurance marketing.

Adjunct lecturers from insurance firms are also employed to advance students’ understanding on the practice of insur-ance. After graduation, most students find work in the insurance industry and some are hired by general industries or other financial industries such as banks. Since last year, the Department has further initi-ated a seven-plus-one program for under-graduate students and a three-plus-one program for graduate students, providing qualified individuals with an opportunity to start their career early in the insurance industry during the last semester before graduation.

There are currently 16 faculty members in the RMI Department, including ARIA members Chwen-Chi Liu and Chi-Hung Chang. Professor Liu’s specialization includes econometrics, research methods and insurance economics. Professor Chang’s research interests are property insurance, financial management and

Noriyoshi Yanase, Tokyo Keizai University

Shining the Spotlight on Universities in the Far East, continued



financial econometrics. Other faculty members specialize in a wide spectrum of disciplines related to insurance, including risk management, property-liability and life insurance, actuarial science, and insurance marketing. Their research has been pub-lished in prestigious insurance journals such as The Journal of Risk and Insurance, Geneva Risk and Insurance Review, Geneva Papers on Risk and Insurance - Issues and Practice, and North American Actuarial Journal. In addition to academic research, the facul-ty also work with insurance firms in practi-cal projects to encourage the combination of theory and practice.

National Chengchi University (NCCU): The Department of RMI of National Chengchi University (a pub-lic institution) was

established in 1985 and celebrates her 30th anniversary this year. The mission of this Department is to nurture risk management and insurance professionals, especially young talent.

The Department offers both graduate and postgraduate courses. Every year 47 undergraduates are enrolled. To graduate, they need to take 138 credits of courses before graduation. A wide range of cours-es can be selected from including insur-ance theory, insurance law, corporate finance and actuarial science. Students may also elect a minor discipline in order to broaden their area of knowledge. Upon graduation, a Bachelor’s degree in Business will be granted.

The Department enrolls 26 master stu-dents and five Ph.D. students per year. A master student who takes 42 credits of course work and completes an orally defended master thesis will earn a Master’s degree in Science. For the Ph.D. program, a student has to finish 40 cred-its of course work, pass comprehensive exams and complete an orally defended doctoral dissertation before earning a Ph.D. degree. There are three tracks for both master and Ph.D. programs, includ-ing Management, Actuarial Science and Law. For each specialty track, different courses are offered to strengthen stu-dents’ professional competency and com-petitiveness in the markets.

The Department’s rigorous academic training and professionalism, along with industry-university cooperation with lead-ing insurance companies, provide students greater opportunities to connect with business firms. Equipped with both aca-demic and practical experience, graduates are welcome in very competitive job mar-kets. Most of them work in the insurance and banking sectors.

The Department currently has 12 full-time faculty members; 92% of them received their doctoral degrees from globally presti-gious universities. Their background includes risk management, actuarial science, law, and marketing, and their research focuses on the following four areas:

• Risk Management, including govern-ment natural disaster risk management, enterprise risk management, and finan-cial institutions risk management.

• Longevity Risk and Pension, including population aging, design of pension plan, social insurance retirement benefits, occu-pational pension, pension fund manage-ment, retirement saving, annuity, reverse mortgages, and other pension investment products, as well as issues related to pen-sion management and investment.

• Insurance Management and Social Insurance, including product design, marketing strategy, investment asset allo-cation, actuarial valuation, asset liability management and risk management of the social insurance systems and insurance company operations, and issues related to bancassurance and life settlement.

• Finance and Insurance Regulations and Supervisory Mechanisms, including issues related to finance and insurance regulations, designing early warning system and supervisory mechanisms.

Many professors in the Department also play an important role in the governmen-tal and insurance sectors in Taiwan, serv-ing as Vice Chairperson of Financial Supervisory Commission, Head of Financial Ombudsman Institution, and independent directors for a number of leading insurance companies.

Chwen-Chi Liu, Feng Chia University

Chi-Hung Chang, Feng Chia University

Yung-Ming Shiu, National Chengchi University

Continued on page 10


The Department of RMI of National Chengchi University is now regarded as one of the leading institutions in Taiwan with respect to both teaching and research. Yung-Ming Shiu, RMI Department Chair, states, “The academic achievements of our faculty are at the forefront among the aca-demic institutions in Asia. We will contin-ue our efforts in recruiting excellent teach-ing and research professionals and intensi-fying the interchange of new ideas and approaches with international scholars and firms.” Professor Shiu’s specialization is the risk management of insurance companies, including reinsurance and derivatives.

Shih Chien University: Shih Chien University is a private

university in Taiwan, with one campus in Taipei and a second campus in Kaohsiung. Its Department of Banking and Insurance, established in 1976, was extended to a four-year undergraduate program for

graduates of general or vocational senior high schools in 1991. The school was then upgraded to become the Shih Chien College of Design and Management.

In 1992, the Department of Banking and Insurance was divided into the Department of Insurance and the Department of Finance and Banking, each of which admitted one class of students. In 1993, with the approval of the Ministry of Education, the Department of Insurance admitted one more class of stu-dents in the day division program and set up the night division program, in the hopes of training more potential talent for the insurance industry. In 1997, respond-ing to the policies of the Ministry of Education, working students were also enrolled in the night division program. The Department of Insurance was found-ed in 1990 after a year of preparation. Observing current economic trends, the Department made an adaptation to the changes and was renamed the Department of Risk Management and Insurance.


The graduate school of finance and insur-ance was founded in 2006. This graduate school was combined with the department of finance in 2010. There are a total of 11 full-time teachers, and more than 600 stu-dents, which included 574 students in uni-versity, 8 students in graduate school, and 32 students from mainland China in 2013. According to ARIA member, Lih Ru Chen (no photo available), “We provide our stu-dents with internship programs and offer them scholarships. Our Department has been promoting education of risk manage-ment. We prepare students to be capable professionals as risk managers and insur-ance managers.” Professor Chen’s research focuses on insurer efficiency.

Congratulations to The University of Alabama’s Culverhouse College of Commerce which received a $2 million gift from Dai-ichi Life Insurance Company Limited (based in Tokyo, Japan) and Protective Life Corporation (based in Birmingham, Ala.) in February 2015.

Part of the funding will be used to endow a professorship in partnership with Protective, Dai-ichi and the Culverhouse College of Commerce called the “Dai-ichi Life Teaching Chair in Actuarial Sciences and Risk Management.” This endowed professorship pays homage to the founder of Dai-ichi Life, Tsuneta Yano, known in Japan as the “father of mutual life insurance” and celebrated as an insurance pioneer worldwide.

The remaining funds will be used to support the Insurance Hall of Fame housed in UA’s Alston Hall. The Hall of Fame chronicles the history of insurance and honors leaders in the industry, including historic figures such as Mr. Yano. It hosts thousands of visitors each year and is used as a resource by both the College and the University to recruit outstanding students and faculty. Funds will be used for ongoing maintenance

and support, including annual upgrades to the facility, as well as website maintenance.

ARIA member Bill Rabel said, “This generous gift will have a huge impact on our program and we will do everything possible to justify the confidence that our benefactors have placed in us.” Dr. J. Michael Hardin, dean of the Culverhouse College of Commerce, stated, “We are deeply honored to receive this generous gift from Dai-ichi Life and Protective Life. These funds will help strengthen our curriculum in our insurance discipline and will help us to better prepare our students for future success. It’s also important to have this funding to maintain our one-of-a-kind Insurance Hall of Fame.”

According to Koichiro Watanabe, Dai-ichi president and representative director, “We worked diligently and in tandem with Protective leadership to identify recipients that align with our company’s mission of, ‘By your side, for life.’ Each recipient in some way reinforces our company values, our culture and our commitment to improving the lives of the people and communities we serve.”

University of Alabama Culverhouse College of Commerce Receives $2 Million Gift

Predictive Modeling in Actuarial ScienceEdward W. Frees, Richard A. Derrig, Glenn Meyers

Cambridge University Press

This 2014 book covers the major mathematical models for use in actuarial science, risk management, and insurance in the published Volume 1. The 20 chapters cover common

actuarial methods such as linear models, time series, and frequency/severity models. Less common methods such as Bayesian regression, unsupervised learning, and fat tailed regression are also included from the actuary’s tool kit. Volume 2 (in production) will include examples of the application of these modeling techniques including data sets and modeling language coding. Casualty Actuarial Society Conferences have featured sessions by three chapter authors in order to introduce the members to the usefulness of such a collection of basic modeling methods. The coverage of these techniques is general enough to be useful for ARIA members interested in including modeling techniques in their papers and/or classroom work. The book is available from Cambridge and Amazon.


Creating Geeks Who Understand Bucks: Demystifying Financial Engineering

A relatively new field of study has emerged in the world of finance, known as “finan-cial engineering.” This is often defined as a multi-disciplinary field that pertains to the application of engineering approaches and methods to the analysis and manage-ment of financial opportunities and prob-lems, particularly where risk is a concern. According to RISK Magazine, the Illinois Institute of Technology’s Stuart School of Business was the first school to offer a financial engineering program in the early 1990s.

ARIA Member Morton Lane is direc-tor of the Master of Science in Financial Engineering (MSFE) program at the University of Illinois at Urbana-Champaign (UIUC), which began offering the MSFE degree in Fall 2010. In this article and the one that follows, Morton elaborates on the purpose of this program and its benefits to students:

“First of all, Master of Science in Financial Engineering (MSFE) programs differ from Master of Science in Finance (MSF) pro-grams in areas of concentration and require-ment. Traditional MSF programs have been around for some time and they have been focused on the valuation of corporations and valuation of their financing instruments – equity and bonds. MSFE programs are more recent and they are more focused on deriva-tive instruments valuation and trading, which has become highly automated and electronic in the last decade.

Of course, these areas are not mutually exclusive, any more than primary and sec-ondary markets are independent of each other. However, the abilities needed to become proficient in Financial Engineering demand an ability in quantitative methods beyond what is required in pure finance.

Our MSFE students study applied math-ematics, statistics, stochastic calculus, com-puter programming and numerical methods, in addition to finance topics such as valua-tion and risk management. Some students may have ambitions to design trading algo-rithms, to become t raders, but these days the skills they acquire are widely applied beyond trading to areas such as advertising and insurance. All industries are becoming

highly automated and inundated with data. Quantitative skills are at a premium.

Ninety-five percent of our MSFE graduates get placed within 180 days of graduation. Last year, a third of our graduates were placed before graduation and while the program is only five years old, it was ranked 9th among FE programs by The Financial Engineer, which has developed a separate ranking for such programs.”

The MSFE program at UIUC has gotten rave reviews from students. A few com-ments* made:

• “The MSFE program has a one of a kind curriculum that allows you to study a wide variety of subjects in all relevant fields that define quantitative finance. The Practicum project in the third semester gives you immense exposure to the industry and practices – and the best part is that you get to apply what you’ve learned to very realistic, implementable and professional projects. I’d recommend this program to everyone who’s inter-ested in pursuing a career as a quant.”

• “...I can at least express my gratitude for the endless opportunities UIUC MSFE has provided me. Albeit rigorous, exhausting, and daunting at times, this program is ideal for candidates inter-ested in: studying stochastic calculus in a financial context; using statistical techniques for time-series data; build-ing valuation methodologies; leveraging a handful of programming languages; employing optimization techniques; investigating numeric methods; network-ing with financial institutions; contribut-ing to confidential practicums; joining a community of accomplished alumni.”

• “It is a great program because it deals with technical skills. You can learn a lot in statistics, programming. Courses like Risk Management and Financial Derivatives make me equipped with detailed knowledge and skills applied in the finance industry.”

• “The best thing about this program is it’s a marriage of the College of Engineering and the College of Business at the University of Illinois. ... My final project

Journal of Insurance Issues Research AwardsThe Journal of Insurance Issues (JII, jointly sponsored by the Western and Southern Risk Insurance Associations), together with St. John’s University’s School of Risk Management, Insurance, and Actuarial Science (SRM), announces research awards totaling $6,000 for selected papers submitted for publication in a special issue of the JII focused on catastrophes, climate change and insurance. Papers on all related topics that have not been previously published are invited for consideration.

A best paper award of $3,000 and up to three honorable mention awards of $1,000 will be made. Winning papers will be presented at a research symposium in October 2015, held in conjunction with the SRM’s annual invitation-only conference on insurance regulation in New York City. Selected papers will be considered for inclusion in a special issue of the JII to be published in March 2016; the focus of the issue and paper is on catastrophe, environmental change and insurance. Limited travel support to attend the symposium and SRM conference may be available for one author of each selected paper.

The deadline to submit manuscripts for consideration is June 30, 2015. Awards will be announced August 15. Authors should submit papers to James Barrese at [email protected] listing the subject “JII Research Award submission.” Visit the JII website (www.insuranceissues.org) for information on paper formatting requirements.

was related to market microstructure, which prepared me for my role at the Securities & Exchange Commission as a financial economist.

*Source: Quantnet.com, “University of Illinois Financial Engineering Program, “ www.quantnet.com


Needed Technology: From finance class to finance career

The following article is by Leo Murphy, university program manager for Trading Technologies International, Inc., and includes an interview with ARIA member Morton Lane. This article first appeared in EdTech Digest. EdTech Digest, Copyright 2015. Used with permission. https://edtechdigest.word-press.com/2015/01/21/needed-technology/

GUEST COLUMN by Leo Murphy and Morton Lane

Posted Jan. 21, 2015

This past year, the McKinsey Center for Government released the second report in its “Education to Employment” series titled Education to Employment: Designing a System that Works.

The numbers are somewhat staggering: 75 million young people worldwide are unemployed because they do not possess the skills that industry demands. These young people are three times more likely to be unemployed than their parents. The labor force is available and the jobs are open, but the skills are lacking.

The question is complex: exactly how can we better synchronize the stakeholders—i.e., the students, the universities and the employers—to improve this situation and put more qualified grads into the workforce? Before we consider solutions, let’s take a closer look at some sobering statistics.

McKinsey surveyed 8,000 stakeholders including 2,700 employers, 900 educators and 4,500 students from nine different countries and examined 100 cases studies that addressed the issue. Among the find-ings that are interesting is that far and away the most important factor for employers is work-readiness, with 91% citing that as their number one concern. In addition, employers are more inclined to value the results of education above the reputation of a school, with 44% saying a candidate’s competency is more important than the institution from which they graduated.

The fracture in the education-to-employ-ment process is evident in the report, as 74% of education providers feel their graduates are work-ready, while only 38%

Science in Financial Engineering (MSFE) program at the University of Illinois-Urbana Champaign. Although the pro-gram officially began in 2010, it was a few years earlier when I received a call asking for my input as to what a good financial engineering program should include.

Right away, I knew the end product was going to be something special. Instead of housing the program under either the business school or the college of engi-neering, Illinois chose to create a joint program under both the Department of Industrial and Enterprise Systems Engineering in the College of Engineering and the Department of Finance in the College of Business. So instead of operat-ing within a particular discipline or silo, the MSFE program fully integrates all nec-essary disciplines from both business and engineering to empower graduates.

QuantNet immediately recognized the financial engineering program as being one of the country’s best, ranking it 20th, and more recently The Financial Engineer ranked it 15th in their 2015 MSF Rankings.

I recently had an opportunity to sit down with Professor Morton Lane, the direc-tor of the MSFE program to discuss the program and how industry collaboration helps graduates.

of students and 35% of employers agree. The par-ties clearly do not share the same definition of work-readiness.

The Technology Council of North America (TECNA) released similar find-ings in December in the report National Survey of Technology, Policy and Strategic Issues 2014. A survey of C-level Illinois technology executives shows that 47% believe the talent shortage could con-tribute to slowing economic activity. This condition has worsened since the 2013 reading of 39%. In addition, 74% of survey respondents feel there is a moderate to significant shortage in the quantity of talent, and 69% feel the same is true for the quality of talent. In terms of education, the sur-vey shows policies that promote STEM (Science, Technology, Engineering and Math) for both higher education and K-12 are preferred more than policies that address taxation or state funding.

So what’s the answer?As already stated, the question is a com-plex one, but the reports say the first step is to work together more closely. The McKinsey report states, “To improve student prospects, education providers could work more closely with employers to make sure that they are offering courses that really help young people prepare for the workplace.” In similar fashion, the TECNA report states that university align-ment with tech industry needs is consid-ered a contributing factor to a healthy tech environment in Illinois.

Communication, collaboration and cooperation: Three sides creating the perfect triangleIn my job, I assist universities that are open to collaboration with businesses such as Trading Technologies. That is what first brought me to the Master of

Leo Murphy, Manager of the University Program for Trading Technologies International, Inc., uses the com-pany’s X_TRADER software to demonstrate financial market principles in a classroom.

http://mckinseyonsociety.com/education-to-employment/report/

http://mckinseyonsociety.com/education-to-employment/report/

http://msfe.illinois.edu/

https://www.quantnet.com/mfe-programs-rankings/

https://thefinancialengineer.net/msf-rankings/

http://www.tecna.org/national-survey.html#sthash.fYQGWngb.dpbs



https://www.tradingtechnologies.com/company/about/university/

http://msfe.illinois.edu/


Needed Technology: From finance class to finance career, continued

Q: What is your definition of financial engineering?

Professor Lane: Financial engineering is simply the application of quantitative techniques (which include, for example, mathematics, statistics, numerical meth-ods and computing) to detecting opportu-nities in financial markets.

Q: The first FE programs began in the mid-1990s. Your program began in 2010. What did you learn from those who preceded you?

Professor Lane: I visited several ranked programs and discussed with each how they structured the programs, optimal length, faculty mix, etc. Some empha-sized theory, some emphasized statistics; essentially they had the DNA of their host department. It seemed to me the best ones had multiple host departments.

Q: What is the benefit to having the pro-gram fall under BOTH the business and engineering schools?

Professor Lane: Directly we get the best of faculty from each department and college. Indirectly, and more subtly, we get different perspectives on many common issues. It makes students open-minded to attacking topics with the best tool in their arsenal, not just the one that they learned in a specialty.

Q: What disciplines does the MSFE pro-gram require upon graduation?

Professor Lane: We want graduates to be able to a) identify financial opportunities, b) model those opportunities (or prob-lems), c) program and execute those mod-els and d) assess the risks and rewards of what they’ve investigated. Finally and probably most importantly, they must be able to articulate their results to technical and non-technical peers.

Q: How do industry partners contribute to the process?

Professor Lane: They are vital. Just as I vis-ited existing FE programs when we started, I went to visit old friends in the financial industry. What we heard was that while they appreciated and wanted theoretical rigor in their employees, they also wanted to have students who could better “hit the ground running.” Hence our practi-cal approach. However, that advice was not their most significant contribution. We have a series of Practitioner Speakers, an active Advisory Board from industry and, most importantly, financial industry partners who provide us with live projects and weekly “face time” guidance to student teams during a whole semester. Student teams are required to complete these proj-ects as a graduation requirement.

These projects have another effect. They allow me and the faculty to know what is currently at the cutting edge in the indus-try and where we should concentrate or redirect our efforts.

Finally, we have also begun to have elec-tive courses taught by qualified people who are active in industry – i.e., they have day jobs.

Q: What industry feedback have you received?

Professor Lane: Industry likes to contrib-ute. They know what to expect from their recruits, and it exposes them to potential recruits who have worked on a project that they are directing. It seems to work. This year, more than 30% of the 2014 class had jobs prior to graduating. Historically, 95% of students are placed within 180 days of graduation.

More and more finance departments are enabling their students to explore how their degree can be enhanced by integrat-ing relevant disciplines like engineering and computer science. In the same spirit, they are seeking collaboration and feed-back from the industries that recruit their graduates to ensure they are empowering students for the workplace. This helps flat-ten the learning curve and makes it easier for both graduate and employer.

Since 1982 Leo Murphy has been active in the financial services industry in Chicago as a broker, economist and educator. He currently manages the University Program for Trading Technologies International, Inc., a global provider of electronic trading soft-ware for professional traders. Through the University Program, TT builds partnerships with universities by contributing to curricu-lum, donating software and lecturing. The program currently has 63 partner schools in 10 countries.

In addition to his duties as the Director of MSFE at the University of Illinois, Professor Morton Lane also runs his own consult-ing practice (Lane Financial LLC) offering advice on the securitization of (re)insurance risk and catastrophe risk portfolio man-agement. He was actively involved in the original development of exchange-traded financial futures and options derivatives and the securitization of insurance. His appoint-ments have included President of Discount Corporation of New York Futures, a finan-cial futures broker; President of Sedgwick-Lane; Head of the Commodities Division at Bear Stearns; President of Lind Waldock and Portfolio Manager at the World Bank. Professor Lane co-authored two books on financial futures and two books on (re)insur-ance securitization. Professor Lane received his Ph.D. from the University of Texas in Business Administration, Mathematics and Computer Science.

Editor’s Note: Although the Master of Science in Finance program at the University of Illinois at Urbana-Champaign was ranked 15th highest in the nation in 2015, its Master of Science in Financial Engineering program – run by Professor Lane – was ranked 9th highest by The Financial Engineer.

Morton Lane


Career!

www.TheInstitutes.org

During my Principles of Risk Management course in college, our professor shared that there was a 90 percent placement rating for jobs after college in the insurance industry.

After deciding to pursue a career in insurance, I started the Collegiate Studies program, which has been a very beneficial experience. I’ve found that it has laid the groundwork for what I am doing in my claims adjusting role and that I am far beyond what others have brought into the field.

Alyson D’AntonoliClaims Adjuster, Amerisure Insurance

“”

With the Collegiate Studies for CPCU program, the coursework you complete during college will waive up to two courses in the Chartered Property Casualty Underwriter (CPCU®) designation program, the insurance industry’s premier professional designation.

How You Will Benefit

• Gainvaluabletechnicalknowledgethatwillhelpjump-startyourcareer• Buildyourresumesoyoucansetyourselfapartfromotherjobapplicants• Showyourcommitmenttotheinsuranceindustryandyourfutureemployer

FormoreinformationabouttheCollegiateStudiesforCPCUprogram,visitwww.TheInstitutes.org/csp.

Jump-Start Your

MyPathisaninsuranceindustryinitiativetoeducateyoungpeopleaboutthelimitlessopportunititesintheinsuranceindustry.Acareerininsuranceofferswork–lifebalance,openopportunititesforadvancement,andtheabilitytomakeadifference and help people.

Check out www.InsureMyPath.orgtolearnaboutcareeroptions,scholarships,internshipopportunities,andhow insurance is the right destination for you!

COLLEGIATE_FL1099.indd 1 2/6/2015 10:31:12 AM


The Institutes’ Collegiate Studies for CPCU Programby Connor Harrison, The Institutes

The Institutes actively support the transition of college students to the insurance industry through their Collegiate Studies for CPCU program. This program allows students to waive up to two courses in the Chartered Property Casualty Underwriter (CPCU®) designation program without having to take the corresponding Institutes examinations.

The Institutes launched the Collegiate Studies program in August 2012. Initially, partner colleges had to offer an insurance major, and participating students had to be majoring in insurance. Since then, the pro-gram has been broadened to include more

colleges that may not offer a formal insur-ance major, allowing the program to reach more students. Qualifying colleges need to be accredited and to offer a course based on an Institutes textbook used in the CPCU program. For college students to take advan-tage of this program, they must be enrolled at one of our partner colleges and have earned at least a B in the course.

Students who have earned the two course waivers and have completed The Institutes’ online Ethics and the CPCU Code of Professional Conduct (Ethics 312) course can receive the Collegiate Studies for CPCU certificate.

As of this month, 106 college students have earned the certificate, and 878 waivers have been granted through the program. Additionally, many of these students have gone on to take additional Institutes course work to help them succeed and advance in their career. The table below lists partici-pating colleges and the number of waivers granted at those colleges.

The Institutes believe that college students who have been exposed to CPCU studies while in college are recognized as valuable by insurance employers. With this in mind, The Institutes plan to continue expanding

their Collegiate Studies program. More than 35 non-participating colleges and universi-ties in the U.S. offer either a risk manage-ment or insurance-related major or minor or are affiliated with Gamma Iota Sigma, the international insurance fraternity. These numbers indicate a great opportunity for The Institutes to continue helping students jump start their career.

The Collegiate Studies for CPCU program is just one of several initiatives The Institutes are working on to educate and excite the next generation about a career in risk management and insurance. The Institutes’ vision is to connect as many young people as possible with the opportunities that exist in our industry.

Learn more about The Institutes’ Collegiate Studies for CPCU Program (https://www.theinstitutes.org/students/ace.htm)

Connor Harrison is director of custom solu-tions at The Institutes, where he develops online and print products for organizations including insurers, agencies, associations, col-leges and universities, and government. He can be reached at [email protected].

CPCU is a registered trademark of The Institutes. All rights reserved.

Connor Harrison

College No. of Waivers

Temple University - Fox School 193

Illinois State University 112

St. John's University 51

University of Georgia 46

University of North Texas 45

University of Wisconsin - Madison 44

Appalachian State University 42

East Carolina University 42

Missouri State University 34

Ball State University 30

Eastern Kentucky University 25

Florida State University 24

St. Joseph's University 24

University of Wisconsin - Oshkosh 20

Indiana State University 19

Butler University 18

College No. of Waivers

Troy University 17

University of Houston - Downtown 17

University of Mississippi 12

University of North Carolina - Charlotte 9

New Mexico State University 8

University of South Carolina 7

California State University - Northridge 6

La Salle University 6

California State University - Sacramento 5

Gannon University 5

University of Central Arkansas 4

Ferris State University 3

Olivet College 3

University of Colorado - Denver 2

University of Louisiana - Monroe 2

Virginia Commonwealth University 2

Franklin University 1

https://www.theinstitutes.org/students/ace.htm


Stealing Second in Cyber Space: High-Tech Risks Can Push Creative Solutionsby Jeff De Turris, Insurance Services Office (ISO)

Jeff De Turris

“Progress always involves risk; you can’t steal second base and keep your foot on first,” a well-known literary critic once opined in the last century.

That said, fast-forward to today. Imagine a high-flying drone making a beeline over-head, delivering a pair of slippers or even conducting a property survey — that is, before it encounters the power line.

The unmanned flight then is grounded in a flash, a real-world crash once only pos-sible in science fiction. With technologi-cal progress and the potential for drones to be used in a range of activities includ-ing consumer deliveries, pipeline inspec-tions, and agricultural spraying — as well as for security surveillance and surveying — the prospects for similar mishaps can be dizzying.

Drones are one of several recent and rapid leaps in technology that also involve risk and could present perplexing insurance implications as they introduce a new market. The insurance industry’s product developers need to be ready for such challenges. Furthermore, such changes require innovation to develop the rating tools and insurance coverage that will adequately address the previ-ously unanticipated risks introduced now via cutting-edge technology.

Watch for Risks from AboveAbove us, we see that technology is improving the ability to expand the capa-bilities of unmanned aircraft systems, or

drones, with some miniature versions the size of insects. Racing to keep up with such advances, the Federal Aviation Administration is in the process of devel-oping regulations, policies and standards that aim to promote safety and privacy — and to keep drones off the lawn of the White House and possibly your house.

Advocates for the development and use of drones believe that drones can be effective for the delivery of goods, surveillance for crime investigation, security of property and borders, and uses from monitoring crop health to inspection of pipelines in challenging environments that make inspections by humans difficult or dan-gerous. Many insurers look forward to a day when drones will be used to handle property inspections and even report the condition of a roof.

And yet, how will a delivery drone navigate around power lines, telephone poles, buildings and houses? Can it be programmed to respond immediately to weather and unforeseen events, or avoid other drones hovering in its path? Will it be able to leave a package precisely on a doorstep without dropping it on a car or a homeowner’s head? While such poten-tial exposures will need to be addressed, insurers can now turn to a suite of option-al coverage endorsements to address com-mercial liability issues related to drones available in the marketplace today.

From High-flying to Vehicle-driven Risks Descending from technological advances in the air to those on the ground, the cars of today are already equipped with features that warn drivers about forward collisions, lane departures, and obstacles will take us closer to autonomous driving — cars with features that purportedly allow the car to drive with minimal human intervention. While media attention frequently targets the development and testing of such vehicle technology, there has been relatively little focus on the insurance mechanisms that one day will be required to address such autonomous cars.

As part of the underwriting process for such autonomous vehicles, underwriters will need to capture information about a vehicle’s self-driving capability and how the latest technology updates that capability. New coverage options may be needed for any OEM (Original Equipment Manufacturer) or aftermarket light detection and radar systems that aid in the self-driving vehicle functionality. The way that a car will react in an unavoidable accident situation (such as when a deer runs into oncoming traffic, or a pedestrian stands in danger) is some-thing underwriters and claims adjusters will likely want to know when writing and rating autonomous vehicles.

Among other technology-enabled risks, the top issue for commercial and personal auto insurers is commonly referred to as ride-sharing, a phenomenon driven by the Transportation Network Company (TNC) that allows drivers to connect, via downloadable mobile applications, with potential passengers. Social networking sites can be used to rate TNC drivers and review prior passenger experiences. An app might even handle payment for the fare and tip.

One reason that ride-sharing is causing concern for insurers is its potential to affect a broad range of customers — from college students, to teachers on summer vacation, to retired seniors, all looking to earn some extra cash.

A personal auto policy typically does not contemplate coverage for risks associated with a taxi or livery service. As a result, it’s understandable that existing personal auto policy language designed to exclude taxi or livery services needs tweaking to address explicitly specific TNC-related activity. The bottom line shows TNC drivers need specific, creative coverage tools to address such activity, along with corresponding rating information where considerations may include the territory where drivers search for passengers and distances driven during their ride-sharing.

Underwriters will also need to deter-mine whether an insured party is tak-ing part in TNC activity. Notifications


Stealing Second in Cyber Space: High-Tech Risks Can Push Creative Solutions, continued

to policyholders and broader education efforts are likely to become important steps in announcing coverage implica-tions. Claims staff will likely adjust their claims handling practices to review claims, from the time a driver first turns on the app to when a passenger leaves the car. Similar underwriting and claims concerns may apply to home-sharing, a growing trend in online renting of rooms in homes and apartments, as well as in the rapidly-growing online sharing economy of tools, bicycles, pet-sitting, and other goods and services.

High-tech Risk MitigationLet’s not forget that, beyond these poten-tial new risks introduced by technologi-cal progress, technology continues to help mitigate risk. When we hear about telematics, the subject of usage-based insurance for vehicles comes to mind. But in the near future, the Internet of Things could allow data from sensors installed in residential properties to fine-tune pricing information, informing insurers in ways that traditional rating methodologies do not.

Insurers could soon benefit from telemat-ics data that report information about the exterior and interior of a home and its occupants’ behaviors. Sensors might iden-tify gas leaks, running water, movement of contents in and out of a house as well as occupancy itself.

Whether technological innovation ushers in gadgetry that leads to new risk expo-sures, or facilitates new and potentially risky behaviors, or conversely helps to reduce exposures, there’s no stopping progress. But like a baseball player steal-ing that extra base and stretching to safety, insurers and policyholders will need to assess the risks raised by technology — to slide successfully into the future.

Jeff De Turris is vice president, Coverage Products and Operations, at ISO, a Verisk Analytics (Nasdaq:VRSK) business.

George Krempley Joins Faculty at South Carolinaby Helen Doerpinghaus, Interim Provost, University of South Carolina

George Krempley

The University of South Carolina is proud to announce that George Krempley has joined the Finance fac-ulty at The Darla Moore School of Business. George is currently teaching the Introductory Risk Management and Insurance course as well as the Property & Liability course for the Risk Management and Insurance major.

In addition, George is serving as the co-director of the School’s Risk and Uncertainty Management (RUM) Center (along with Greg Niehaus). The Center’s mission is to promote a multi-disciplinary, enterprise-wide approach to risk management, support the Risk Management and Insurance major and minor programs, and facilitate interac-tion between the University community (faculty and students) with external constituents. As co-director, George will help develop strategy for the Center and coordinate activities with the Board of Advisors, which consists of risk profes-sionals from a variety of industries and backgrounds. (The board includes the president of Travelers, the chief risk offi-cer of Wells Fargo Brokerage, the VP for risk at Balfour-Beatty, the president of Nationwide-Agribusiness, the executive VP and chief underwriting officer for Travelers, the CEO of Energy Insurance Mutual, the CEO of AgFirst Farm Credit Bank, the chief financial officer of Pan American Life, the chief security officer of Boeing, and others.)

George is an accomplished management consultant and insurance executive with more than 30 years of in-depth industry experience. He has deep knowledge and diverse experiences in all key insurance functions including claims, underwriting, pricing, operations, product development, marketing, and information technology. His insurance expertise and consulting experience will be instrumental as the school introduces courses in which small groups of students with faculty oversight will work on real risk management con-sulting projects with companies.

Most recently, George was a principal consultant for Robert E. Nolan Company. While at Nolan, George worked on proj-ects for State Farm, Nationwide, Liberty Mutual, Kentucky Farm Bureau, American Family, and many other insurance com-panies.

Prior to re-joining the Nolan Company, George was president and CEO for NAMIC Insurance Company and Ohio Bar Liability Insurance Company. Earlier, he was president and CEO of Automobile Club Insurance Company. He was also a vice president, regional operations/mar-keting, for Merchants Mutual Insurance Group.

George brings excellent experience in academia. He served as an adjunct faculty member at Ohio State University, where he regularly taught risk management and insurance courses over a period of five years. During his tenure at OSU, he co-developed the university’s graduate course in Enterprise Risk Management and doubled undergraduate enrollment in RMI courses. He is also a past chairman of the Board of the Griffith Foundation of Insurance Education.

George’s passion for education is evident to anyone who talks to him. He is commit-ted to making the RMI program at South Carolina known for providing students with the knowledge, frameworks, tools, and experiences that lead to better decision making in situations involving a wide vari-ety of risks confronting organizations.


ARIA Members and Friends in the News

Congratulations to Dan Anderson (retired, University of Wisconsin-Madison) who has been named the 2015 recipient of the John S. Bickley Founder’s Award by the International Insurance Society (IIS). The Bickley Award honors individuals who have made a significant, lasting and recognized contribution to insurance thought, products, practice or education. Bernhard Fink, IIS Honors Committee Chairman, states: “A true trailblazer, Dan has been making a convincing case for over 40 years that the insurance industry is instrumental in dealing with environmental and social risks, leading up to the publication of his 2005 pio-neering book Corporate Survival: The Critical Importance of Sustainability Risk Management. His commitment to insur-ance research and education is remark-able, and we are proud to bestow him the prestigious Founder’s Award.”

Ann Carroll (Rider University) was appointed interim dean of the College of Business Administration, effective July 2014. During her affiliation with Rider, she has played a leadership role in the revamping of both the undergraduate and MBA programs, working with fac-ulty, employers and others to move these programs forward. In addition, she was involved in the development of two new programs in the College: the sport man-agement co-major and the health care management major.

Hua Chen was honored as Outstanding Professor of the Year in the M.S. Program in Actuarial Science at Temple University (2014).

Siwei Gao was appointed to the Thomas and Rebecca Coffey Endowed Professorship in Insurance Studies at Eastern Kentucky University. Both Mr. and Mrs. Coffey, who are EKU graduates, have spent their professional lives in the risk management profession. Mr. Coffey stated, “We could not be more pleased that Dr. Gao is the recipient of our Professorship.”

After a college re-organization at Drake University, Lisa Gardner is now Chair of

the Actuarial Science, Risk Management, and Insurance Department.

In May 2014, James Hilliard joined the W.A. Franke College of Business at Northern Arizona University in Flagstaff, where is now assistant professor of finance. Jim reports that although he will primarily be teaching corporate finance, he will continue to be active in ARIA and the regional associations and his research agenda continues to be primarily risk and insurance.

Marie-Claire Koissi recently joined the University of Wisconsin-Eau Claire fac-ulty where she is now associate professor of mathematics. She previously taught at Western Illinois University in Macomb.

Daniel Kugler retired from Snap-on, Inc. in May 2014, where he was assistant trea-surer of corporate risk management. He is now director of the Center for Insurance and Risk Management in the College of Business at the University of Wisconsin-Oshkosh. In this new position, Dan will teach part time and engage industry partners, other businesses and industry groups.

In March 2015, Bermuda-based Hamilton Insurance Group announced the appoint-ment of Joan Lamm-Tenant (Guy Carpenter & Co., LLC) to its Board of Directors. Joan has also been named as the CEO of the Microinsurance Venture Incubator (MVI), launched at the World Economic Forum in January by a consor-tium of insurance companies that includes Guy Carpenter and Hamilton Insurance Group. The MVI was formed to create markets that deliver risk protection to the underserved in developing countries.

The Jan. 2015 issue of ILS Market Update by Willis Capital Markets and Advisory features a discerning interview with Morton Lane (University of Illinois at Urbana-Champaign and president of Lane Financial LLC) on the insurance-linked securities market.

Robert Lieberthal (Jefferson School of Population Health) was recently named

as an Associate Research member of the Sidney Kimmel Cancer Center at Thomas Jefferson University.

David Marlett (Appalachian State University) was approved for an International Scholarly Research Assignment by his university and spent the winter in Christchurch, New Zealand. He is learning about the NZ model for insuring catastrophic risk and gain-ing first-hand experience on the mas-sive rebuilding efforts. His main area of research is on how governments and society manage catastrophic risk in the U.S. David reports that it is interesting to learn about a new system and how that compares with U.S. models. He is working with the faculty at Christchurch Polytechnic Institute of Technology and has been residing in Christchurch through mid-April. David’s wife and three teens joined him in NZ and are enjoying their stay immensely. The kids are enrolled in the local high school and begging to stay all year.

Kathleen McCullough (Florida State University) has been appointed as Associated Dean for Academic Affairs and Research. She will oversee academic strat-egy, academic policy, accreditation/assur-ance and learning, and research programs for the College of Business. This includes oversight of all academic programs and interfacing with university-level adminis-tration on these issues.

Congratulations to James Poterba (Massachusetts Institute of Technology) who was chosen to receive the Daniel M. Holland Medal from the National Tax Association in honor of his outstanding contributions to the study and practice of public finance. The medal was pre-sented at the association’s 107th Annual Conference on Taxation in Santa Fe, New Mexico in Nov. 2014. Mr. Holland was a MIT Sloan faculty member who was an expert on taxation and public finance; he served as president of National Tax Association in 1989 and edited the National Tax Journal from 1966 until his death in 1991.


ARIA Members and Friends in the News, continued

Lars Powell has been appointed the inaugural director of the newly cre-ated Alabama Center for Insurance Information and Research (ACIIR) at the University of Alabama in Tuscaloosa. Dr. J. Michael Hardin, dean of the university’s Culverhouse College of Commerce, states: “I am confident that (Lars’) leadership will be instrumental in leading the Center to become the ‘go to source’ for insurance research in the state of Alabama.” The ACIIR was authorized in 2013 by Gov. Robert J. Bentley and is designed to be a non-partisan and highly credible source for information about various insurance issues of importance to the people of the state.

Bill Rabel (University of Alabama) would like to take this opportunity to note his membership with ARIA that has lasted at least fifty years. He recalls that his first meeting was when ARIA met with ASSA, either in 1964 or 1965 – at the time, he was a Huebner fellow looking for a job. Bill believes he has missed only two – at most three – ARIA meetings since then. He is curious to know if anyone has a lon-ger run than that. Congratulations to Bill, who likely holds the record for attending the most ARIA meetings!

Marc Ragin has joined Temple University’s Fox School of Business as assistant pro-fessor of research in the Risk Insurance & Healthcare Management Department. Prior to this, he was with the University of Wisconsin-Madison (UW-M) where he was the recipient of the Henry C. Naiman Graduate Student Teaching Award (in 2013), given annually to a graduate stu-dent who has distinguished him/herself as an outstanding teacher. Marc received his Ph.D. in actuarial science, risk manage-ment and insurance from UW-M last year.

Congratulations to Marjorie Rosenberg (University of Wisconsin-Madison) who recently won an award from the Robert Wood Johnson Foundation Health & Society Scholars program. This award provides financial support for her new course on health care analytics, building on her interest in the application of sta-tistical methods and actuarial expertise to health care. The course will be facilitated by the efforts of the students who will help

Congratulations to the University of Illinois at Urbana-Champaign’s Actuarial Science Program which received a three-year, six-figure grant from the Society of Actuaries (SOA) in the summer of 2014. A few

years ago, the SOA designated the U of I a Center of Actuarial Excellence (CAE), making it eligible to submit a grant proposal. The proposal to build and implement a robust program of undergraduate research opportunities for its actuarial students, entitled “An Undergraduate Research Program in Risk and Actuarial Science,” was selected as a winning Educational Grant application.

Former ARIA member Rick Gorvett, director of the Illinois Actuarial Science Program and principal investigator on the CAE grant, stated, “Much research in the risk and actuarial science fields is performed by corporate and consulting actuaries and other actuarial practitioners, which the vast majority of our students will become upon graduation. A program like this is a tremendous opportunity for students to gain experience in research processes and techniques, which will be useful throughout their careers whenever they encounter a situation or problem that requires the collection of information, thoughtful analysis, and project planning. Also, it’s an opportunity for students to see for themselves that research can be an enjoyable activity, and inspire them to pursue

such activities on their own – or at least not be afraid of research!”

Over the course of the first academic year, at least 25-30 students are expected to be involved on about 10 projects. End products will vary according to the particular project, but will include a mixture of summary papers, poster sessions, written case studies and presentations, all primarily written or delivered by students. Deliverables will be posted on a research program website, to be accessible by other students at universities around the world, as well as by actuarial and risk practitioners, for the benefit of everyone.

Included among the initial projects are:

• A multi-part, multi-level regression model for the demand for U.S. inpatient mental healthcare.

• The pricing of conditional Asian options.

• Risk measures for variable annuity guaranteed benefits.

• An actuarial student user’s guide to the R programming language.

• Actuarial and risk management applications for agent-based models.

• Differences in risk perceptions between societies and cultures.

Each year during the three-year implementation period, the number of projects and students participating in research will increase. In the second and third years, courses related to undergraduate research activities will be created and offered to students. Also, several companies will be asked to participate as advisors, providing the program with insights as to what current topics and research opportunities would be most relevant and reasonable for students to pursue.

Rick Gorvett

University of Illinois at Urbana-Champaign Actuarial Science Program Receives Society of Actuaries Grant

develop the syllabus over the course of the semester.

Congratulations to Erin Trish (University of Southern California Schaeffer Center for Health Policy and Economics) who was one of only seven recipients universi-ty-wide to be awarded the 2014 Provost’s Postdoctoral Scholar Research Grant. She received $25,000 to study how Medicare Advantage insurance programs determine

reimbursement rates for hospitals and doctors providing care to their enrollees.

Jianren Xu joined the Department of Finance at California State University-Fullerton in Aug. 2014. He earned his Ph.D. with a major in risk management and insurance and a minor in finance last year from the University of Georgia, where he also received the 2014 Maurice Doan Outstanding Teaching Award.


Your Day with a Famous Person in History

ARIA NEWS recently asked ARIA mem-bers the question “If you could spend a day with a famous person in history, who would it be, and why?” For some, this question was a “no brainer,” while others found it more challenging to provide an answer since there are so many fascinat-ing individuals from whom to choose. Thanks to those members who submitted responses, which are shown below; if you did not participate, we hope you neverthe-less gave this some thought and found it to be a fun and interesting exercise.

Madhusudan Acharyya (University of Southampton): “I would prefer to speak to a chief risk officer of a failed bank. This is to know how the top management deliberately capitalizes the risk manage-ment and controls structure as a false and illusive promise to safeguard their profit seeking motives.”

Zeinab Amin (The American University in Cairo): “I would love to spend it with Claude Monet. I do not need to talk to him; I would just spend as much time as possible watching him paint.”

Joe Belth (retired, Indiana University): “I would love to spend a day with Elizur Wright to get his first hand views on his efforts to abolish slavery, his experience as the first Massachusetts insurance commis-sioner, and how he dealt with the insur-ance companies who strongly opposed his reform efforts. I would also love to spend a day with Charles Evans Hughes to get his first hand views on the Hughes-Armstrong investigation of the life insur-ance business in New York.”

James Carson (University of Georgia): “I would love to spend a day with Marie Curie so that I could watch/share in her pursuit of knowledge on radioactivity (but maybe we could both wear some protec-tive gear!).”

Richard Corbett (retired, Florida State University): “I’d love to spend a day with Benjamin Franklin. This rapscallion, patriot, womanizer, diplomat, and inven-tor has long been a favorite of mine. He invented bi-focals and the Franklin stove, figured out how electricity is conducted from lightning, and brought the idea of

the community fire department from England to Philadelphia. He was there for the birth of our nation and helped to guide in its early days. We’d open some good wine and let the questions and sto-ries flow.”

Neil Doherty (retired, University of Pennsylvania): “Nicolaus Copernicus. First of all he was a polymath, physician, econo-mist, mathematician and astronomer. That alone would have made him fascinating. But obviously the main attraction would be to share the excitement of his discovery of the heliocentric solar system. I don’t think we can comprehend the magnitude of his discovery to 16th Century Europe. This would have changed their whole (sorry for the pun) worldview. So much so, that he delayed publishing for thirty years. Apart from the sheer fascination of sharing that discovery with him, it would be instruc-tive to talk with him about why he delayed. Did he fear scorn from fellow scientists for such a bold idea, did he worry about the reaction of the church, or was he simply so fertile in his pursuit of other ideas in economics, medicine and the like, to worry about publication?”

Marty Ellingsworth (Salt Creek Analytics): “Benjamin Franklin. He was an inventor, innovator, first risk transfer fire company founder, politician, and world traveler.”

Lisa Gardner (Drake University): “Because of my love for spending time in wilderness areas, appreciation for our National Park System, and the joy I feel when observing as well as creating art about natural places, I’ll choose Ansel Adams. His photographs, taken at a time before many of our wilder-ness areas were further developed, bring the magic of those places alive for past, current and I hope, future generations of Americans. Best known for his black and white photography, Adams possessed a unique sensitivity to light, which combined with excellent technical skills, allowed him to create photographs that particularly illuminate the beauty of places like Half-dome at Yosemite, Muir Woods, and the Grand Tetons and Snake River, to name just a few. I would have enjoyed being by his side as he set up these shots in some of America’s most spectacular settings, wait-ing for the perfect moment to capture the light just right. He was apparently a lively conversationalist, so I imagine him sharing


Your Day with a Famous Person in History, continued

stories of his travel adventures that might involve some of his wonderfully creative friends like Edward Weston, Imogene Cunningham, and Georgia O’Keefe.

Adams succeeded as few have during my lifetime in not only revealing beauty, but in inspiring others through his work. Too, he largely lived true to Ralph Waldo Emerson’s ideal of living a modest life, guided by a responsibility to nature as well as to fellow human beings. For all of these reasons and more, spending a day with Ansel Adams would be an enriching, a joyful and truly fascinating experience for me, and one that I am sure that I would never forget.”

Linda Golden (University of Texas-Austin): “Thomas Jefferson and Benjamin Franklin, because as founders of the U.S.A. they will have interesting knowledge and perspectives. Both were path breakers and very creative entrepreneurs.”

Haruyoshi Ito (International University of Japan): “I would like to spend a day with Yukichi Fukuzawa, who was the founder of Keio University in Japan. He wrote many text books in the field of economics as well as accounting and other practical disciplines. He also disclosed market price anomalies. Mr. Fukuzawa initially studied Dutch but once he realized that the industrial countries of the U.S. and U.K. would dominate the world, he started studying English by going abroad. Mr. Fukuzawa was a very enthusi-astic educator and researcher in Japan so by staying with him, I hope to learn a lot from him and absorb his enthusiasm.”

Gyu Dong Kim (Temple University): “I’d like to meet Noah because I want to ask him how to manage flood risks or weather risks during global warming.”

Diana Lee (retired, Property Casualty Insurers Association of America): “My choice is chemist and mineralogist James Smithson, whose will provided that should his nephew die without any heirs, the bulk of Smithson’s properties would go to ‘the United States of America, to found at Washington, under the name of the Smithsonian Institution, an Establishment for the increase and diffusion of knowledge among men.’ Smithson, who died in 1829

at the age of 63, never visited the U.S.; it’s a mystery why he left his estate – valued at $508,318 in 1838 – to this country. If I met Smithson, I’d want to know why he did this and spend the day showing him pictures of the vast Smithsonian collections.”

Rob Lieberthal (Jefferson School of Population Health): “I would love to meet with George Orwell. He was such a phe-nomenal writer—I wonder if writing was as hard for him as it is for me.”

Weili Lu (California State University–Fullerton): “That would be George Washington so I could ask why and how he came up with the great idea of estab-lishing our political system in the U.S.”

David Marlett (Appalachian State University): “My first thought is either Julius or Augustus Caesar, but since I don’t speak Latin it would just be a frus-trating experience. So Ben Franklin is my top choice. He had such a wide range of interest we could talk about anything. Plus it would be fascinating to hear his per-spective on the American Revolution.”

Moshe Milevsky (York University): “If I could I would spend the day with astronomer Edmond Halley, the person after whom Halley’s Comet is named. He was a contemporary of Isaac Newton, and lived through a very critical period of scientific history. The main reason I would love to hang out with him (as soon as we can invent time machines) is that although he spent most of his life gazing at stars, exploring the earth’s magnetic field and publishing many foundation papers on astronomy, he took some time to publish ONE paper on the valuation of life annuities in 1693. This was the first formal paper on the pricing of mortality-contingent claims and he created the first life table ever published. After this incred-ible piece of work, he went back to being a professor of astronomy (and geometry) at Oxford. I would love to find out what got him interested in actuarial science...and why he left after publishing one paper!”

Giovanni Millo (Assicurazioni Generali S.p.A.): “I’d like to spend a day with Julius Caesar, who combined military prowess

and political vision with the literary skills of a great writer. I also have information which he’d better hear before March 15th.”

Bill Rabel (University of Alabama): “I would spend a day with Dr. Solomon S. Huebner because from all accounts he was a very interesting person who, in addition to being the leading RMI academician of the first half of the 20th Century, was also well-traveled and knew everybody. In addition, Dr. Huebner had the reputation of loving to talk and not letting anyone else get a word in edgewise. These days I really need a rest and it would be nice to be with someone where I could sit, listen, do nothing, and carry out my part of the social contract.”

Harris Schlesinger (University of Alabama): “I would love to spend a day with Bruno de Finetti, the Italian probability theo-rist. Granted he is less famous than most, but he has likely contributed more to the modern theory of choice under risk than anyone else. When I was younger, I used to jokingly refer to Harris’ Theorem: ‘If you find a supposedly new result in deci-sion making under uncertainty, you can likely find that it was previously discovered by de Finetti, if you search hard enough.’ It is true! Since de Finetti wrote his many papers mostly in Italian, they were never in the forefront until they were mentioned by Savage in the 1950s. I myself learned some about de Finetti’s work through the writings of Karl Borch, whom I was fortu-nate enough to know. Some of de Finetti’s work has since been translated into English, and it is a treasure trove of ideas. And to think that he thought most all of this out by himself, before the rest of us (a.k.a. the English-speaking world) exam-ined the same issues many years later.”

Terrie Troxel (retired, Indiana State University): “I’d like to spend time with economist Milton Friedman, the most prominent advocate of competitive capi-talism in the 20th Century. He reshaped a generation’s views on how the economy works and the power of free choice.”


The newest college or university Environmental Health and Safety (EHS) degree program to join the Institute for Safety and Health Management’s (ISHM) Board Approved Degree Programs is the Bachelor of Science in Environmental Health and Safety from Missouri Southern State University (MSSU) in Joplin, Mo.

To be approved for B.S. level credit, the major must have a minimum of 36 semester hours of safety specific courses and must include a minimum of nine semester hours of management-exclusive safety courses.

A student earning a B.S. in EHS from Missouri Southern is automatically qualified for the Associate Safety and Health Manager (ASHM) credential offered by Institute for Safety and Health Management (ISHM). If application is made within six months of graduation the application fee is waived. In addition, it fast tracks the student toward becoming a Certified Safety and Health Manager (CSHM). Instead of the requirement for four years of experience, EHS professionals with a degree from an approved institution, such as MSSU, only have to demonstrate two years of experience in order to sit for the CSHM exam.

“We look forward to a partnership with MSSU that adds value for their students and results in better

ISHM Board Approves Missouri Southern State University’s EHS Curriculum

prepared, knowledgeable safety professionals as they begin their journey in this field,” said Larry Curtis, executive director of ISHM. MSSU’s EHS program is fully accredited by the National Environmental Health Science and Protection Accreditation Council. “An added benefit for MSSU students is that the school’s EHS coursework is available as a distance learning track in addition to a campus track.”

ISHM currently recognizes degree programs from 12 other higher education institutions in Alabama, West Virginia, Kentucky, Pennsylvania, Wisconsin, Michigan, and Texas. ISHM also accepts ABET-accredited EHS Programs, which currently includes more than 30 programs.

ASHM credentials help potential employers know that the individual has been formally educated to address safety and health issues and are ready to step into an entry level position. It is an important stepping stone to achieving accredited CSHM certification. This credential acknowledges that the individual has a broad understanding of business and financial principles, hazard analyses, accident investigation, environmental law and other safety principles, and can apply a variety of safety tools.

About ISHM Institute for Safety and Health Management (located in Yuma, Ariz.) provides accredited certifications for Safety and Health Managers and Practitioners. It is the only HSE certification provider that focuses on the entire safety management process. It recognizes safety professionals for the education and experience they have gained and is widely accepted by Occupational Health and Safety Departments in general industry, construction, oil and gas, utilities, healthcare and emergency management markets.

Institutions interested in being considered for an ISHM Board Approved Program can download the application (http://www.ishm.org/pdf/ISHM-Board-Approved-School-Application.pdf ) or call (877) 201-4053. Nominations for the 2015 Safety Management Professional of the Year will be accepted beginning July 1, 2015; this designation recognizes safety managers who have had a significant impact on their company’s safety practices, policies and procedures, or who have demonstrated leadership and inspired others to lead. Download the form (http://www.ishm.org/pdf/ISHM-safety-professional-management-of-the-year-nomination-form.pdf) and email your nomination to [email protected].

Risk Management and Insurance Positions

Below is a list of organizations offering academic, government, and industry jobs that ARIA has received since November 2014, presented in chronological order of final posting on ARIA’s website. Positions whose explicit application deadlines have past are not included below. Please visit the ARIA website (www.aria.org) or con-tact these organizations for additional information.

NovemberButler University (Indianapolis, Ind.)Department of Mathematics and Actuarial Science Two (2) assistant professor positions (tenure-track position)

University of Waterloo (Ontario, Canada)Department of Statistics and Actuarial ScienceAssistant, associate or, in very special cases, full professor in actuarial science (tenure-track or tenured position)

DecemberUniversity of Cincinnati (Ohio)Department of FinanceAssistant / associate / full professor in insurance and risk management

JanuaryDrake University (Des Moines, Iowa)School of Actuarial Science Sammons Group Executive Directorto provide overall administrative leadership

Federal Reserve Bank of Chicago (Illinois)Insurance InitiativePolicy economist (entry- or senior-level position)

Indiana State University (Terre Haute)Scott College of BusinessAssociate/assistant professor in in surance and risk management (tenure-track position)

Lingnan University (Hong Kong)Department of Finance and InsuranceProfessor / associate professor

FebruaryGannon University (Erie, Penn.)Dahlkemper School of BusinessAssistant professor of risk management (nine-month tenure-track position)

http://www.ishm.org/pdf/ISHM-Board-Approved-School-Application.pdf

http://www.ishm.org/pdf/ISHM-Board-Approved-School-Application.pdf

http://www.ishm.org/pdf/ISHM-safety-professsional-management-of-the-year-nomination-form.pdf


In Memoriam

ARIA NEWS regrets to inform members of the passing of Linda H. Lamel, who died on Dec. 5, 2014. Although Ms. Lamel was not a member of ARIA, many members may be familiar with her diverse and extensive career in both academia and the insurance field. She received her J.D. from Brooklyn Law School, where she was an adjunct professor, and she was also a professor of risk management at Queen’s College, City University of New York.

Ms. Lamel held many different leadership positions during her career. She became New York State’s first female Deputy Superintendent of Insurance in the late 1970s, and was subsequently president and CEO of the College of Insurance (now St. John’s University), vice president of TIAA-CREF, executive director of the Risk and Insurance Management Society (RIMS), and CEO of Claims on Line. Ms. Lamel served on the board of World Risk and Insurance News and was a director and board member of several insurance companies.

Some of her affiliations included the Association of Professional Insurance Women (APIW), American Management Association - Council on Risk and Insurance, Association of the Bar of the City of New York, New York County Lawyers Association, and American Society of Workers Compensation Professionals. Ms. Lamel was chosen as the Insurance Woman of the Year by the APIW in 1988 and one of the 100 Women Industry Leaders by Crain’s Business Insurance in 2000.

Friends and associates describe Ms. Lamel as a selfless, dedicated, fun, kind and caring person with a warm smile and a great sense of humor. Contributions may be made in her honor to Hour Children, Inc., a non-profit organization (in Long Island City, N.Y.) serving incarcerated women and their children, of which Ms. Lamel was a board member.

Linda H. Lamel Sean F. Mooney

ARIA NEWS remembers Sean F. Mooney, who regrettably passed away on Feb. 17, 2015. He was a senior vice president at W.R. Grace before spending 16 years at the Insurance Information Institute, where he was senior vice president and economist. Dr. Mooney joined Guy Carpenter & Co. in 1998 as research director and economist, ultimately becoming senior vice president and chief economist. Under his direc-tion, Guy Carpenter was named “Analyst/Researcher of the Year” at The Review mag-azine’s prestigious Worldwide Reinsurance Awards in 2001.

Dr. Mooney was a respected economist and insightful industry observer. He earned a CPCU designation and was the author of many articles, books and industry reports including, “Insuring Your Business,” a guide for mid-sized corporations, “The Liability Crisis - A Perspective” and “The Cost of Urban Auto Insurance.” He also had a monthly column called “Financial Insights” for the op-ed page of The National Underwriter and was a guest speaker at many industry functions discussing a variety of insurance and reinsurance issues such as ter-rorism and catastrophe risk management.

Dr. Mooney received his Bachelor and Master of Science degrees in Mathematics from University College in Dublin, Ireland; Master of Arts degree in Economics from Fordham University (New York); and Ph.D. in Economics from the University of California-Los Angeles. He is remembered for his slight Irish brogue, the twinkle in his eyes and his love of opera; Puccini’s “Tosca” was his favorite.

Georgia State University (Atlanta)J. Mack Robinson College of BusinessOne or more visiting faculty positions in the area of Business Analytics

University of New South Wales (Australia)UNSW Business SchoolSenior research associate

MarchHEC Montréal (Canada)Finance DepartmentCanada Junior Research Chair in Pension Finance and Savings

Nanyang Technological University (Singapore)Division of Banking and Finance, Nanyang Business School

Senior research fellow in actuarial science (two-year term)

University of North Texas (Denton)Lecturer in risk management and in surance

University of Southern Maine (Portland)School of BusinessLecturer in risk management and insurance (full time)

Risk Management and Insurance Positions, continued


Executive Director Report at ARIA’s 2015 Winter Board Meeting by Anthony Biacchi, ARIA Executive Director

Anthony Biacchi

Summary This article offers highlights of the ARIA Executive Director’s report in early Jan. 2015.

FinancesAs of Dec. 31, 2014, ARIA’s investment portfolio is now at $641,501.24, compared to $611,955.35 on Dec. 31, 2013. A break-down of current funds and their change since 2013 is: unrestricted funds ($503,935.91; 5.5% increase); restricted funds ($131,408.78; 2.8% increase); and Risk Theory Society custodial funds ($6,156.55; 3.7% decrease).

MembershipOverall year-end (2014) membership totaled 547, down from 564 in 2013. Student membership increased by 25 while regular membership and retirees declined by 40 and 2, respectively.

Over the years, the international member-ship has grown significantly while U.S. membership has dropped. In 2007, the distribution between U.S. members and international members was 66%/34%, compared to 54%/46% in 2014.

Countries with the largest number of ARIA members at year-end 2014 com-pared with year-end 2013 are shown below:

Country Dec. 2014 Dec. 2013 Difference

Canada 31 27 +4

England 12 22 -10

Germany 49 57 -8

Switzerland 21 21 0

South Korea 12 11 +1

Taiwan 21 17 +4

United States 298 304 -6

ARIA’s current membership fees are presented below; they are provided as a refer-ence for future membership rates and in consideration of a new membership category, Regular Member: Online Journal Subscription Only.

Combined Subscription with Risk Management and Insurance Review The Americas

UK and Europe (non-Euro zone)

Europe (Euro zone) ROW

ARIA Member: Print + Online $ 140 £ 103 € 129 £ 103

ARIA Retired or Student Member: Print + Online $ 58 £ 38 € 48 £ 38

ARIA Retired or Student Member: Online Only $ 30 £ 20 € 30 £ 38

Wiley PublishingLou Philippe Manila serves as the production editor for both The JRI and RMIR. He replaces Sonia Wilson who is now the primary contact for questions concerning ScholarOne manuscript management. Brian Giblin, based in Oxford, England, continues as publishing manager for ARIA’s journals.

Brian reported as of Oct. 2014, the JRI/RMIR bundle had 434 full-rate subscriptions, down from 449 for 2013. The shift away from print subscriptions continues. Hopefully online licensed subscriptions remains stable. A full report on circulation will be includ-ed in the 2014 Publisher’s Report in the spring.

Based on subscription, download, and membership activities through Oct. 2014, Wiley royalties payable to ARIA in April 2015 could be lower than those received in the last two years.

As previously reported, the 2013 Impact Factor for The JRI is 1.000 and the 5-year Impact Factor is 1.408. The JRI is now ranked 38 out of 91 journals in the Business, Finance category, and 134 of 333 journals in Economics.

The Journal of Risk and InsuranceEditor Keith Crocker reported The JRI received 161 new submissions during the first eleven months of 2014, which compares favorably to the 190 new submissions received during calendar year 2013. The current backlog is 59 articles that have been accepted for publication. Submissions since Jan. 1, 2013 are processed through the ScholarOne web portal, which has processed 350 new submissions. The JRI’s download count will exceed 50,000, but it is unlikely to surpass the 53,910 downloads recorded in 2012.

Three special issues of The JRI are scheduled. The first is Behavioral Insurance and Behavioral Risk Management, scheduled to appear in the June 2015 issue. The second will feature papers from the Tenth International Longevity Risk and Capital Markets Solutions Conference, held in Santiago, Chile in Sept. 2014. The issue will appear either as a regular


Executive Director Report at ARIA’s 2015 Winter Board Meeting, continued

issue or as an extra (fifth) issue during 2016, depending on the backlog of accept-ed papers at that time. The third special issue will be Risk in Emerging Markets, drawing from papers presented at the June 2015 Insurance Risk & Finance Research Conference to be held at the Nanyang Business School in Singapore. The guest editors will be David Cummins (Temple University) and Michael Powers (Tsinghua University); this special issue is expected to appear in 2017.

Risk Management and Insurance ReviewRecently retired RMIR editor Mary Weiss reported the fall 2014 RMIR issue (Vol. 17, No. 2) published eight articles (4 feature articles, 3 perspectives, and 1 educational insight). The spring 2015 issue (Vol. 18, No. 1) which is in production will contain nine articles (4 feature articles, 4 perspec-tives and 1 educational insight).

For 2014, RMIR received 21 new subscrip-tions and 34 resubmissions. The current backlog of accepted articles includes 2 feature articles, 1 perspectives and 1 edu-cational insight. RMIR downloads are on track to surpass last year’s totals, experi-encing its best year by exceeding 15,000 downloads.

WebmasterMajor changes have not been made to ARIA’s website. Since her last report, Webmaster Kyneta Lee has focused on two areas: posting annual meeting pre-sentations, including plenary session vid-eos, on the website; and phasing out the GoDaddy hosting package.

Between June 1 and Dec. 13, 2014, there were 10,746 visits to the ARIA site by 7,274 persons. Approximately 40% of the visitors access the website through ARIA’s URL or a bookmark. Social media traffic accounted for only 2% of visitors, indicat-ing ARIA’s need to increase its exposure.

The ARIA.org domain name will expire in Aug. 2015. Currently registered through Network Solutions, Kyneta suggested the registration be transferred to GoDaddy in order to deal with only one contractor.

Kyneta also reported a website bounce rate of 53%, whereby visitors leave almost

Jean Kwon (St. John’s University and Director of Research, International Insurance Society) invites ARIA members to submit names of qualified candidates for the prestigious International Insurance Society (IIS) Hall of Fame Award and the John S. Bickley Founder’s Award.

Recognized as the premier award in the insurance industry, the Insurance Hall of Fame Award is bestowed on an individual who has made a broad, encompassing and lasting contribution to the insurance industry, thereby affecting a substantial influence on the ability of the industry to serve society. The Founder’s Award, named after the late John S. Bickley – Emeritus Professor of Insurance at The University of Alabama and founder of IIS – honors individuals who have made a significant and lasting contribution to insurance thought, product, practice or education. Award recipients are recognized during the Awards Ceremony and Gala Dinner at the annual IIS Global Insurance Forum.

Go to http://www.insurancehalloffame.org/form_ihf.html for the Hall of Fame Award nomination form and http://www.iisonline.org/files/files/Founder_s_Nomination_form_2013.pdf for the Founder’s Award nomination form. Names of candidates should be submitted by the end of this summer. Please contact Jean Kwon [[email protected] or +1 (212) 277-5196] if you have any questions.

The IIS, founded in 1965, provides a forum for leading insurance professionals to share interests and ideas on pertinent global issues. The IIS is the largest and most notable organization of its kind, with members from 90 countries representing senior insurance executives, international regulatory authorities and prominent insurance scholars. This year, the IIS Global Insurance Forum will be held in New York City on June 14-17 at the Waldorf Astorial Hotel.

Solicitation for Nomination of IIS Hall of Fame and Founder’s Award Candidates

immediately after entering ARIA’s web-site. Besides annual meeting information, visitors are not finding other information of interest. The website committee could be charged with investigating this matter further.

ARIA NewsletterThe newsletter editor, Diana Lee, who has held this position since 2001, will end her duties following the spring 2015 issue. The future of ARIA NEWS must be considered.

Annual MeetingsThe financials for ARIA’s 2014 annual meeting in Seattle resulted in a negative balance of $61,146, due primarily to the cost for the Monday social at the Seattle aquarium, plus transportation. An addi-tional meeting expense was the video production of the plenary sessions; these videos are now available on ARIA’s web-site. The total loss is in comparison to a loss of $47,500 from the 2013 meeting in Washington D.C.

The Seattle annual meeting attendance totaled 170, down from 210 participants in the previous year. Sponsorship for the 2014 meeting also was down, $34,350 from 28 organizations compared to $36,700 from 30 organizations in 2013. Submission of papers for presentation at the annual meeting numbered 171; the acceptance rate again approximated 50%.

The upcoming annual meeting (Aug. 2-6, 2015) will be held in conjunction with the World Congress. ARIA’s 2016 meeting is scheduled to be held at the Royal Sonesta Hotel in Cambridge, Mass. The executive office is considering Toronto, Ontario, Canada for the 2017 venue, although the Renaissance Hotel in both Las Vegas and Vancouver has been actively pursuing ARIA.

Executive OfficeThe 2015 management fee payable to The Institutes will increase by a factor con-sistent with the CPI-U, most likely 1.7%. ARIA’s contract for The Institutes to house the executive office expires at the end of 2015. An executive office RFP will be pre-pared and distributed to interested parties.

http://www.insurancehalloffame.org/form_ihf.html

http://www.insurancehalloffame.org/form_ihf.html

http://www.iisonline.org/files/files/Founder_s_Nomination_form_2013.pdf

http://www.iisonline.org/files/files/Founder_s_Nomination_form_2013.pdf

[email protected]

[email protected]


Activities of Related Associations and Affiliates

Risk and Insurance Management Society, Inc. (RIMS)2015 Conference & Exhibition (53rd annual)April 26-29Ernest N. Morial Convention Center New Orleans, Louisianahttp://www.rims.org/annualconference/rims2015

Risk Theory Society2015 Annual Meeting (53rd annual)May 1-3Cornell UniversityIthaca, New YorkFor program information, contact Alexander Muermann, Secretary of RTS, at [email protected]. For local arrangements, contact Sharon Tennyson at [email protected] or visit the RTS website.http://www.aria.org/rts

International Insurance Society2015 Global Insurance Forum (51st annual)June 14-17Waldorf Astoria HotelNew York, NYhttp://www.iisonline.org

Insurance Risk & Finance Research Conference2015 Conference (4th annual): “Risks in Emerging Markets”June 25-26Insurance Risk and Finance Research Centre (IRFRC)Nanyang Business School, Nanyang Technological UniversitySingaporehttp://www.irfrc.com Confirmed keynote speakers: Christian Gollier, University of Toulouse 1, and Paul Embrechts, ETH Zurich

China International Conference on Insurance and Risk Management2015 Conference (6th annual, organizers: Tsinghua University China Center for Insurance and Risk Management (CCIRM) and Cass Business School, City University, London; host: School of Finance, Zhejiang University of Finance and Economics)July 15-18Sanli New Century Grand Hotel Zhejiang Hangzhou, China (Zhejiang Province)http://www.ccirm.org/conference/2015Keynote speakers: Mark Browne (St. John’s University) and David Babbel (University of Pennsylvania)

4th Conference on Global Insurance SupervisionOrganizers: European Insurance and Occupational Pensions Authority (EIOPA), International Center for Insurance Regulation (ICIR), St. John’s University and The World Bank September 8-9Goethe University, Campus WestendFrankfurt, Germanyhttps://www.eiopa.europa.eu/Pages/Conferences/4th-conference-on-global-insuranceContact: Irina Gemmo, Goethe University, [email protected]

Southern Risk and Insurance Association 2015 Meeting (47th annual)November 22-24Royal Sonesta HotelNew Orleans, Louisianahttp://www.southernrisk.org

Allied Social Science Association (ASSA)2016 MeetingJanuary 3-5, 2016Hilton San Francisco Union SquareSan Francisco, California

Papers are being solicited for the 8th Annual ARIA-ASSA session. Papers can be on any topic in insurance economics or insurance related finance. Since there is only one session at the meeting, the selection process will be competitive. Ideally, in order to attract new members to ARIA’s annual meeting, ARIA and the Risk Theory Society (RTS) should be showcased. Paper or proposal submissions will be accepted until May 18, 2015. Completed papers will be given preference and only one submission per author will be considered.Preference also will be given to papers not presented or accepted at an earlier meeting, such as RTS or the NBER Insurance Project. Please send your submission to David Cummins at [email protected]. Also, let him know if you are going to the ASSA meetings and would like to be a discussant. The date and time of the 2016 ARIA-ASSA session will be announced later this year.

Western Risk and Insurance Association2016 Meeting (50th annual)January 3-6, 2016Wailea Beach Marriott Resort & SpaMaui, Hawaiihttp://www.wria.org Research proposals (no more than three pages, in Word or PDF) should be emailed to program chair, Jacqueline Volkman-Wise (Temple University, [email protected]). Deadline: Oct. 1, 2015. To apply for the Dorfman Doctoral Student Support Award, go to http://www.wria.org/dorfman_scholarship.html.

http://www.rims.org/annualconference/rims2015

http://www.aria.org/rts

http://www.iisonline.org

http://www.irfrc.com

http://www.ccirm.org/conference/2015

https://www.eiopa.europa.eu/Pages/Conferences/4th-conference-on-global-insurance

https://www.eiopa.europa.eu/Pages/Conferences/4th-conference-on-global-insurance

http://www.southernrisk.org

http://www.wria.org/dorfman_scholarship.html.

http://www.wria.org

[email protected]




ARIA NEWS greatly appreciates the contributions made by everyone over the years. The individuals listed below are current members (as of March 31) who wrote at least one article, provided significant information for an article, were profiled or took the time to respond to questions and provide news.

Egregia cum Laude

William Rabel Richard Derrig

Summa cum Laude

Dan Anderson Patty Born Andreas Richter

Tony Biacchi James Carson Harris Schlesinger

Martin Eling Terri Vaughan

Maxima cum Laude

Vickie Bajtelsmit James Jones Richard Phillips

Joseph Belth Yehuda Kahane Michael Powers

Cassandra Cole Weili Lu J. Tim Query

James Garven Richard MacMinn Hato Schmeiser

Enya He Kathleen McCullough Michael Sherris

Rob Hoyt Greg Niehaus Brenda Wells

Magna cum laude

Wendall Braniff Haruyoshi Ito Krzysztof Ostaszewski

Patrick Brockett Gene Lai Willie Reddic

Richard Corbett Robert Lieberthal Michael Smith

Georges Dionne David Marlett David Sommer

William Feldhaus Michael McShane Qixiang Sun

William Ferguson Moshe Milevsky Larry Tzeng

Robert Gibbons Andrew Miller Jennifer Wang

Robert Hartwig Faith Neale Steven Weisbart

Peter Hohman Norma Nielson Mary Weiss

Cum Laude

Stanley Adamson Katya Hanewald J. Francois Outreville

Benjamin Avanzi Shinichi Kamiya Sojung Carol Park

Stephen Avila Martin Kocher Richard Peter

Alexander Braun Morton Lane Jeorg Schiller

Chi-Hung Chang Joseph Launie Joan Schmit

J. David Cummins Chwen-Chi Liu Kim Staking

Helen Doerpinghaus Henri Loubergé Terrie Troxel

Alberto Dreassi John Major Kailin Tuan

Zachary Finn Michael McNamara Joël Wagner

Helmut Gründl Giovanni Millo Ping Wang

Sandra Gustavson Alexander Muermann Noriyoshi Yanase

Jack Nicholson Peter Zweifel

Members Contributing to ARIA NEWS


Dear ARIA Friends,

After 14 years of service on the team that brought you 28 issues of ARIA NEWS, it’s time to relinquish my editorial duties. In 2001, when Helen Doerpinghaus and Patrick Brockett, the respective outgoing and incoming ARIA Presidents, were in need of a newsletter editor, I thought this would be a good opportunity to become more involved and give back to the association. After all, how else would I have gotten to know so many of you and what you do? At times, my familiarity with your work came in handy when the industry needed someone to testify at a state or Congressional hearing, write a paper on an insurance-related issue or speak at an industry function….at least my employer – the Property Casualty Insurers Association of America – was impressed when I dropped a few names from academia!

My objectives as newsletter editor were to share interesting news and information, provide members an opportunity to tout their university programs or research, profile certain individuals, and introduce industry organizations and timely issues to readers who might not be familiar with them. It was equally important to include many photographs and get people to reveal small tidbits about themselves in order to foster greater camaraderie among the membership. I hope all of these goals were accomplished.

No doubt, my work would not have been as effective and enjoyable were it not for you – the members – and others from the academic and insurance communities. The quality of this newsletter only improved because of everyone’s support and contributions. Thank

Letter from the Editor

you for being so gracious and cooperative when you were asked to prepare an article, provide news and even baby pictures (!), be profiled and respond to questions. And you all had big smiles when I took countless pictures of you at the meetings!

If there were an ARIA NEWS Editor’s Award for overall contributions during my 14-year term, it would go to three individuals: Bill Rabel, Jean Kwon, and Richard Derrig, who wrote the most number of articles and provided other important content. Honorable mention would go to Dan Anderson, Patty Born, Jim Carson, Martin Eling, Anne Kleffner, Andreas Richter, Harris Schlesinger, Harold Skipper and Terri Vaughan. Of course, special recognition goes to Tony Biacchi for his continual support and executive director reports, and The Institutes staff: Lee Gardner (retired), Jennifer Long, Liz Sheely and especially graphics designer Chris Long who worked tirelessly through many rounds of edits to make the newsletters so professional looking.

It truly has been a pleasure to be your ARIA NEWS Editor. Be well, and I hope to see you at future ARIA meetings.

Sincerely,

American Risk and Insurance Association, Inc.

716 Providence Road Malvern, PA 19355

Phone: (610) 640-1997 Fax: (610) 725-1007 E-mail: [email protected] Website: www.aria.org

ARIA NEWSis published semi-annually for ARIA members and sponsors.Send comments, suggestions, and news items to the editor: Diana Lee e-mail: [email protected] Phone: (312) 307-1955

Produced by The Institutes

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