CAS Research & Industry Advancements 2

Question 1

Which CAS research initiative specifically focuses on advancing predictive modeling techniques for workers' compensation reserving?

Accepted Answer

The CAS Research Working Party on Predictive Modeling

Answer

The CAS Research Working Party on Predictive Modeling specifically advances techniques applicable to reserving in lines like workers' compensation.

Question 2

Telematics data in auto insurance primarily improves ratemaking accuracy by providing what type of information?

Accepted Answer

Real-time behavioral driving data

Answer

Telematics captures real-time driving behavior—speed, braking, mileage—enabling usage-based insurance pricing more accurate than demographic proxies.

Question 3

In the context of CAS research, what does 'predictive accuracy' differ from 'goodness-of-fit' in model evaluation?

Accepted Answer

Predictive accuracy measures out-of-sample performance; goodness-of-fit measures in-sample fit

Answer

Goodness-of-fit assesses how well a model matches the training data, while predictive accuracy evaluates performance on holdout or future data.

Question 4

Which emerging risk category has prompted the CAS to develop new frameworks for quantifying long-tail liabilities with significant model uncertainty?

Accepted Answer

Cyber risk

Answer

Cyber risk presents long-tail, highly correlated exposures with limited historical data, driving CAS research into new quantification frameworks.

Question 5

The CAS publication 'Variance: Advancing the Science of Risk' serves what primary purpose for the actuarial community?

Accepted Answer

It is a peer-reviewed journal publishing casualty actuarial research

Answer

Variance is the CAS peer-reviewed research journal that publishes original actuarial science research in casualty and property lines.

(CAS) Casualty Actuarial Society Practice Test