Research & Industry Advancements Flashcards
7 cards from real CAS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Research & Industry Advancements flashcards as text
Which CAS research initiative specifically focuses on advancing predictive modeling techniques for workers' compensation reserving?
Answer: The CAS Research Working Party on Predictive Modeling
The CAS Research Working Party on Predictive Modeling specifically advances techniques applicable to reserving in lines like workers' compensation.
Telematics data in auto insurance primarily improves ratemaking accuracy by providing what type of information?
Answer: Real-time behavioral driving data
Telematics captures real-time driving behavior—speed, braking, mileage—enabling usage-based insurance pricing more accurate than demographic proxies.
In the context of CAS research, what does 'predictive accuracy' differ from 'goodness-of-fit' in model evaluation?
Answer: Predictive accuracy measures out-of-sample performance; goodness-of-fit measures in-sample fit
Goodness-of-fit assesses how well a model matches the training data, while predictive accuracy evaluates performance on holdout or future data.
Which emerging risk category has prompted the CAS to develop new frameworks for quantifying long-tail liabilities with significant model uncertainty?
Answer: Cyber risk
Cyber risk presents long-tail, highly correlated exposures with limited historical data, driving CAS research into new quantification frameworks.
The CAS publication 'Variance: Advancing the Science of Risk' serves what primary purpose for the actuarial community?
Answer: It is a peer-reviewed journal publishing casualty actuarial research
Variance is the CAS peer-reviewed research journal that publishes original actuarial science research in casualty and property lines.
When applying gradient boosting machines (GBM) to insurance loss cost modeling, which characteristic distinguishes them from GLMs?
Answer: GBMs automatically capture non-linear relationships and interactions; GLMs require explicit specification
GBMs build ensembles of trees that inherently capture complex non-linear relationships and variable interactions without explicit specification, unlike GLMs.
Climate change research in the CAS context most directly impacts which actuarial function?
Answer: Catastrophe model calibration and long-term trend assumptions
Climate change alters frequency and severity trends for natural perils, requiring actuaries to update catastrophe model assumptions and long-term projections.