Actuarial
Warfel, William J. and Hamwi, Alex, "Actuarial Practices vs. Social Considerations: The Inner-City Property Insurance Problem." Spring 1996, pp. 13-22. Underwriting practices having a disparate impact on residents of inner-city neighborhoods have been targeted as racially discriminatory by the Federal Housing and Urban Development Department (HUD). This article considers whether HUD has regulatory jurisdiction under the Fair Housing Act with respect to these underwriting practices. Proposed solutions to the availability and affordability problem that exists with respect to homeowners insurance for inner-city residents are discussed.

Advertising
Brown, Gordon, Watson, Robert O., and Foley, Mary Anne, "Measuring Print Ad Wear-Out." March 1994, pp. 1-9. Advertisers have long known that particular ads become less effective with repeated exposure. There is disagreement, however, as to how this process of wear-out actually works for television and print advertising. The authors argue there are fundamental reasons for differences in the depth of audience exposure to repeated advertising between television and print that explain differences in wear-out observed for the two media.

Lukowski, Rita, "Monitoring Competitive Communications." July 1993, pp. 57-62. The author discusses how tracking and analyzing the advertising and publicity releases of your competitors can give both valuable information about them directly and useful insights into their strengths and strategic directions when considered in the context of other competitive information.

Zacher, Annette, "Measuring Effects of Insurance Communication Vehicles: Catalog vs. Video." March 1990, pp. 1-5. Does advertising increase sales? The difficulty arises from our inability to control for all the likely determinants of the general outcome in tests of communications. However, we can construct partial tests: for example, pre-post comparisons of awareness, image, and intent to purchase, and then use these to compare different communication vehicles. In this paper the author reports such a test of a more traditional vehicle against one of the newer.

Automobile Insurance
Bernstein, John T., "The Availability and Affordability of Personal Automobile Insurance." February 1991, pp. 17-26. Harvard's John Kenneth Galbraith is quoted as saying there has been no innovation in financial services in the last 500 years. Whether you can agree or not, there should be little doubt the insurance industry needs to find some innovative solutions to dramatic changes in our customers' needs. Some would have us overturn the established order. But truly thoughtful and creative solutions should preserve both the important social aspects of insurance and the need to produce surplus. What creative solutions do require is the continuing application of common sense suggestions and debate in response to customer needs.

Closter, Don, "Evaluating the Profit Potential of Private Passenger Auto Accounts." March 1992, pp. 1-15. The underwriting and marketing functions in insurance are often in conflict. Marketing is rewarded for bringing business to the company, while underwriting is rewarded for rejecting risks. The language and decision rules used by the underwriter come from the actuary. The decision rules for the marketer, however, are dictated by market conditions. This paper, written by an actuary about automobile insurance, attempts to bridge some of the gap by mixing traditional actuarial and marketing concepts in an account evaluation approach.

Cloutier, Norman R. and Cloutier, Sandra B., "A Firm-Level Price Elasticity of Demand For Automobile Insurance." November 1990, pp. 49-54. The aggregate demand for automobile insurance is relatively insensitive to changes in auto insurance rates. At the level of the individual insurer, however, there may be considerable price sensitivity. After using one of the traditional approaches to estimate the price elasticity of demand for a particular competitor's auto insurance, the authors then suggest ways to specify elasticity models in support of a competitive rate (pricing) strategy within local markets.

Doyle, Patrick, "The Automobile Insurance Problem." April 1988, pp. 51-53. The 1988 automobile insurance environment is one of higher accident frequency rates. As commuting distances to work increase, accident frequency will continue to rise. The mix of automobiles on the road is being skewed toward smaller, more vulnerable cars. The general rate of inflation for auto repair, medical costs, and jury verdict awards continues to rise. The insurance industry must be committed to lead in the support of auto safety and rededicate itself to innovative ways of managing auto insurance portfolios.

Hildebrandt, Dean, "Improving the Image of Automobile Insurers." May 1989, pp. 61-62. Some very sound approaches to dealing with the image problem have been proposed within the industry. They can be grouped into three general categories: public education, industry efforts to lower auto insurance loss costs, and actions that individual insurance companies can take to improve their service and their communications. The author proposes that research can have an important role in the third image improvement category and outlines how this might be done. He predicts that the problem will subside and then recur in the 1990s.

Kibildis, G. William, "Issues to Consider in the Personal Auto Insurance Crisis." July 1992, pp. 17-26. The U.S. faces a crisis in personal automobile insurance affordability and availability because of a failure of consensus. Each party ? consumers, insurers, regulators, and others ? views the problem from widely different points of view. Fragmented self-interest is a recognized societal problem. In this essay, the author suggests that we must not lose sight of the fundamental question. He argues we must first achieve broad consensus on the automobile insurance mechanism: meeting social needs or allowing the workings of a competitive marketplace. To maintain that both be equally imposed guarantees consumer dissatisfaction and dwindling availability. 

Claims
McNeill, Jonathan, "If You Want to Discover Retention and Acquisition Drivers, Staple Yourself to the Claims Process!" Winter 1995, pp. 39-47. Claims service is becoming a central acquisition and retention issue with policyholders. According to the author, customers want a faster settlement, 24-hour access, customer focus, and one-stop assistance. He cites studies showing carriers that provide 24-hour claims service have significantly higher profitability.

Shock, Richard L. and Steiner, Eugene E., "Claims Quality: Managing for Continuous Improvement." August 1991, pp. 1-26. Claims quality is affected by a number of factors which are not generally measured by the insurance industry, yet have a profound effect on how companies meet their profitability objectives. Constant improvement in case management and process performance are the initiatives that promote and insure claims quality.

Competitive Intelligence
Lukowski, Rita, "Monitoring Competitive Communications." July 1993, pp. 57-62. The author discusses how tracking and analyzing the advertising and publicity releases of your competitors can give both valuable information about them directly and useful insights into their strengths and strategic directions when considered in the context of other competitive information.

Rudolph, Richard G., "Competitive Analysis in the Insurance Industry: Basic Concepts." July 1988, pp. 15-26. Competitive analysis has become a popular approach to conceptualizing the information needed to assess an organization's strengths and weaknesses for purposes of strategic planning. The basics of competitive analysis are consistent with microeconomic theory and can be applied easily to industries with tangible outputs. It can also be applied to the retailing of services, although the insurance industry poses some interesting questions about "product" and "market." This paper covers the basics of competitive analysis and attempts to deal with these questions for the insurance industry.

Saporito, Patricia L., "Selected Reference Bibliography for Business/Competitor Intelligence." July 1993, pp. 63-66. In this S.I.R. conference presentation, the author lists "how to" books, clipping and ad analysis services, organizations which provide courses on how to conduct analysis, professional associations whose members are in the field, and several software products.

Wagner, Gigi, "Competitive Intelligence Processes." Summer 1998, pp. 61-73. This paper was produced by editing the tapes of the author’s presentation at the S.I.R. Competitive Intelligence (CI) Workshop held in November 1997. It contains discussions of types of competitive intelligence, benefits of CI, the basic steps in starting an intelligence operation, best practices in competitive intelligence, and ethics.

Ward, John R., "Using Vendors to Conduct Primary Research in Competitive Intelligence." Winter 1997, pp. 7-16. This article focuses on CI primary research methods, and includes the following topics: competitive intelligence and competitive benchmarking, understanding competitor strategies and competitive positions, circumstances indicating need for primary research, reasons for using a vendor for primary research, ethical considerations, a typical CI project scenario, project time frames and number of participants, typical benchmarking case studies, characteristics to consider in selecting a competitive intelligence/process benchmarking vendor, and basic guidelines for ensuring that your project progresses smoothly.

Customer Service
Bayless, Norman and Harkey, Dena, "Journey Toward Quality: Federal Express." March 1992, pp. 45-51. The authors share some of the quality processes that led to Federal Express’s winning of the Malcolm Baldrige National Quality Award. The company philosophy is that "By placing our People first, they, in turn, will deliver the 100% Service Satisfaction demanded by our customers, and Profit will follow." The authors discuss how effective communication, emphasis on employee training, and rewards and recognition programs are components of the company’s commitment to its people and how measuring company performance by customers’ standards is key to measuring service quality.

Chavda, Dinyar, "Building Customer Loyalty in a Changing World." Summer 1997, pp. 35-47. UNISYS executed a study of leading companies in North America and in Europe on the topic of "getting close to the customer" and this paper discusses some models that have been built on customer service as a result of that study. The research was conducted across a wide spectrum of industries, with insurance companies being one of those represented. The author relates the following topics to the insurance business: new customer values, building a "customerize" knowledge base, critical links in the customerize process, listening systems, customer segmentation and valuation, relationship building, and customer service programs.

Hagen, Thomas B., "Maintaining Competitive Advantage: Commitment and Consistency." April 1988, pp. 9-12. Modern theory teaches that sustainable competitive advantage arises from technological innovation. Application of a new technology, it is argued, moves a company onto a lower-cost experience curve, which if aggressively pursued, will sustain the company's competitive advantage. Success of an insurance company, however, may also arise from a more intense commitment to delivering consistently high quality products and services at prices in line with customer expectations.

Kelly, Lynn C., "Winning, Losing, and Loyalty." Winter 1995, pp. 49-56. The thesis of this presentation has two parts: 1) Retaining the customers you want is a full marketing life cycle proposition, and 2) Buying (and renewing) is an emotional as well as an intellectual decision. The author discusses some of the key success factors for setting up integrated market development and customer retention programs, and outlines a feedback tool that can help companies use market information easily to improve marketing strategy, product development, and sales.

Lea, G. Robert, "Quality Has Value." March 1992, pp. 39-44. The author’s presentation consists of five parts: 1) a brief overview of the Paul Revere Insurance Group, 2) steps to achieving success in a service environment, 3) details about Paul Revere’s "Quality Has Value" process, 4) the company’s experiences with entering the Baldrige Competition, and 5) quality/service as a business strategy.

McFerson, D. Richard, "The Rules of the Game." Summer 1995, pp. 9-12. To succeed in any endeavor, participants need to know the rules and play within them. In the insurance business, customers make the rules. The author, CEO of the Nationwide Insurance Enterprise, discusses seven requirements their customers want: personal attention, regular contact, convenient service, help with claims, insurance expertise, trust, and money-saving ideas.

Ooms, J. Wesley, "The Customer ? Our Concern." Winter 1995, pp. 23-29. What are insurance companies doing about identifying, attracting, and retaining the customer? The author looks at demographics, banks in our business, customer surveys, and distribution systems, intermingled with change and cost savings.

Richards, David, "In Search of Excellence?" December 1989, pp. 44-49. A parody of Tom Peters’ In Search of Excellence, this article by a senior executive with a large broker of property-casualty and life-health insurance services criticizes America’s insurers for: 1) having a bias toward inaction, 2) being closed to the customer, 3) having a herd instinct, 4) encouraging nonproductiveness through its people, 5) operating in a hands up, vaguely driven attitude, 6) sticking to unraveling the knitting, 7) being driven to tiers, and 8) alternating loose tight properties.

Schiavo, Michael F., "Question Is As Question Does." Summer 1996, pp. 57-59. The author answers the question, "Who are your customers and where are they?" with his "Six Customers Model for the Insurance/Financial Services Industry." He identifies and describes each of the six customer groups: direct purchasers, suppliers, referral sources, recruiters, influencers, and internal staff. 

Data Warehousing/Data Mining
Kriss, Charles J., "Data Warehousing ? Commonly Used Terms & Common Mistakes." Winter 1997, pp. 27-31. In this presentation to the S.I.R. Data Warehousing/Data Mining Workshop in May 1997, the author first explains some commonly used terminology and then concludes with a discussion of six common mistakes he has observed in his experience with data warehousing.

McCauley, John W., "The Road to Successful Data Warehousing Is Filled with Traps, Tricks, and Triumphs." According to the author, data warehousing is perhaps the first or second most talked about technology business application in insurance, retail, and manufacturing companies. In this presentation to the S.I.R. Workshop in May 1997, he discusses some of the ground rules about data warehousing, some of the traps that can be fallen into, some of the tricks that can save time and money, and some of the triumphs that result.

Trencher, Mark L., "Expert Systems and Data Warehouses Underutilized by Many Insurers." Summer 1997, pp. 11-17. Technology is no longer simply a tool to keep track of policyholder data, process claims, etc. It is now a tool that ? if used effectively ? can provide insurers with strategic advantages. This article summarizes some of Conning & Company’s findings relating to expert systems and data warehousing and mining. Topics include a definition of expert systems, how expert systems work, insurers’ use of expert systems, examples of expert systems applied to underwriting, the future of expert systems, definitions of data warehousing and mining, examples of data warehousing and mining, and the return on investment for data warehousing and mining.

Uffenheimer, Nathan, "Decision Support Systems and Data Warehousing in the Insurance Industry." Winter 1997, pp. 33-49. In this paper, the author discusses Decision Support Systems (DSS) and data warehousing as the key enabling environment that drives business values in the insurance industry. He explains what a data warehouse (DW) is and the business rationale for implementing it. He describes a typical insurance data warehouse, how it is used, by whom, and for what purposes, and then cites several examples involving data warehousing usage in the insurance industry. In conclusion, he projects the future for data warehousing in the industry and elaborates on data mining as the means for profiting off DSS.

Distribution Systems
Belton, Edward, "Changes in Distribution Systems: The Canadian Scene." Spring 1997, pp. 13-17. Changes in distribution systems are one aspect of a restructuring of the financial services industry in Canada. The more progressive players are establishing new relationships which are much closer to joint ventures than the traditional relationships that exist between agents, brokers, and insurers. The author discusses multi-channel distribution, bank entry, direct response, electronic commerce, and the reasons for the major differences in the distribution revolution as it is unfolding in Canada versus United States.

Clark, Glenn W., "Alternative Marketing of Insurance Products." Spring 1995, pp. 15-30. The article is an edited version of the author’s presentation at the 1994 S.I.R. Annual Conference on changes in distribution systems for insurance products. Mr. Clark provides insights from his ten years of experience with direct marketing at American International Group, at both national and international levels.

Faulkner, Michael L., "Expansion of the Direct Marketing Concept in the Insurance Industry." Spring 1997, pp. 1-12. The author discusses six changes facing the insurance industry and how they are significant because they have meaning in context with direct response marketing. He provides evidence of direct marketing in insurance, citing several carriers’ initiatives, and presents actual and projected findings from the Direct Marketing Association’s study The Economic Impact: U.S. Direct Marketing Today.

Hartnett, William C., Lukens, Shirley, Miller, Robert A., and Zultowski, Walter, "The New Agent." Spring 1995, pp. 31-46. This article is an edited version of the remarks made by the panelists at the 1994 S.I.R. Annual Conference. Each panelist offered perspectives on the evolving role of the agent in the insurance distribution process.

Moser, H. Ronald, Hart, William S., Nelson, Wayne E., and Rogers, Walter B., "Marketing the Independent Insurance Agency." July 1992, pp. 37-47. Insurance agencies cannot afford to just offer their services and trust that consumers will become aware of them through the work of market forces. Consumers must be continually resold on the merits of the agency. But how can we get to know which things are important to customers and how our agency measures up? Periodic review of services related to customers' satisfaction and their changing demands can secure a better adaptation to the market. The authors suggest a simple approach to begin this process and suggest some questions for subsequent rounds.

Patton, John E. and Squires, Jan R., "Designing Organizational Structure for Multiple Agency Ownership: A Case Study." December 1992, pp. 43-46. Multiple agency ownership often involves needs and constraints which cannot be satisfied by simple proprietor, partner, or corporate organizational structure models alone. This article describes, by means of a case study, the design of an operating partnership approach which evolved to meet the unique requirements of multiple agency ownership. By assigning only some of the normal functions of a producer (i.e., an agency or brokerage operation) into a partnership, a number of ownership and capital problems may be avoided while providing access to economies of scale normally found only in larger entities.

Economics & Forecasting ? Insurance Outlook
Grayson, Harriet, "1994 S.I.R. Life/Health Outlook Survey." Summer 1994, pp. 23-32. This survey targets the chief executive officers of the largest 250 life/health insurance carriers writing business in the U.S. market. It is the companion survey to the Society of Insurance Research's annual survey of CEOs in the largest 250 property/casualty insurance companies. 

Leighton, Ralph, "1994 S.I.R. Property/Casualty Outlook Survey." Summer 1994, pp. 1-22. Each year, the Society of Insurance Research has undertaken a survey of the chief executive officers of the largest 250 property/casualty insurance carriers writing business in the U.S. This survey reports how these individuals view probable industry results, the likely insurance business and economic environment, and key issues challenging companies.

Murray, Michael, "1993 Property-Casualty Insurance Outlook Survey." October 1993, pp. 1-17. This report on the 1993 S.I.R. survey begins with a description of the respondents and then reviews what those respondents foresee in terms of economic trends through 1995. It contains composite projections for premium growth by line of business, underwriting profitability as measured by combined ratios, insurers' surplus, and the number of property/casualty insolvencies. The article concludes with a review of the issues respondents expect will have significant effects on the P/C industry over the next five years and those issues seen as most meriting dialogue with the public.

Murray, Michael, Field, Jennifer, and Carnot, Catherine, "Property-Casualty Insurance Outlook Survey." July 1992, pp. 1-16. The Society of Insurance Research conducts an annual survey to gauge the outlook for the U.S. insurance industry and the economic trends shaping it. Strategic planners throughout the industry are asked to provide their forecasts for key insurance and economic variables. The authors are members of the Society's Research Committee.

Murray, Michael R., "The Property/Casualty Insurance Industry: Past as Prologue?" Winter 1995, pp. 1-21. In recent years, the property/casualty industry has suffered unprecedented catastrophe losses, sluggish premium growth, lackluster investment results, increased competition from alternative insurance mechanisms such as self-insurance and captives, and a host of other problems. In addition, merger and acquisition activity in the industry accelerated sharply in 1994, prompting some analysts to opine that the long-foreseen consolidation of the industry had finally gotten underway. This report uses long-term historical data to place the industry’s recent financial performance in perspective. It then presents the outlook for the property/casualty insurance industry as revealed by the Society of Insurance Research’s 1995 Property/Casualty Operating Outlook Survey. That survey was distributed to the chief executives of the lead companies at America’s 250 largest property/casualty insurers. Their responses provide some unique insights into the challenges that lie ahead.

Ransom, Gary, "Outlook for the Property/Casualty Insurance Market." Summer 1995, pp. 33-51. The author, Senior Vice President in the Insurance Research Group at Conning & Company, reports that indicated trends show very gradual movement, like the back waters of a river near where it empties into the ocean. The waters ebb and flow to some extent but do not appear to be giving a clear sense of direction. Yet, shifts in advertising messages is one of several indications that suggest there are things happening beneath the surface. Mr. Ransom discusses combined ratios, cash flow as a percent of net premium written, how different the contributions of individual lines of business are to the industry combined ratio overall, investment income, and forecasts for all lines, personal automobile, workers’ compensation, general liability, medical malpractice, and commercial multi-peril.

Wilson, J. Brad, "1993 Life-Health Outlook Survey." October 1993, pp. 19-32. A companion to the S.I.R. Property/Casualty Outlook Survey, this survey's respondents were CEOs of life, health, and annuity insurance companies.

Financial Analysis/Assets
Bingham, Russell, "Discounted Accident Year Return: Measuring Profitability and Setting Targets." July 1990, pp. 39-44. Difficulties in knowing the costs of the goods we sell at the time we sell them are frequently offered to explain why insurance companies do not do a better job of marketing and business planning. The crux of the problem is to find cost estimating methodologies that can yield reliable profit data on individual pieces of insurance business ? and from those individual pieces to accounts, market segments, and total books of business.

Lee, John T., Hollman, Kenneth W., and Rezaee, Zabihollah, "The Relevance of Accounting Pronouncements on Market Value Accounting for Insurance Companies." Spring 1996, pp. 1-11. Recent initiatives on market value accounting (MVA), such as SFAS No. 115, require many financial institutions, including insurance companies, to mark-to-market certain investments in securities. This study addresses the relevance of MVA for insurance companies as well as the financial and managerial impacts of adopting SFAS No. 115. The authors conducted a survey of a sample of life/health and property/casualty companies. The majority of respondents reported a slightly higher performance for MVA over historical cost accounting in providing reliable, relevant, objective, and more comparable financial information. The results indicate that: 1) the immediate impact of the new accounting rules on MVA, for the insurance industry, will be changes in the classification of securities, and 2) insurance companies have shifted, or will shift, to short-term securities in an attempt to avoid the possible negative impacts of accounting rules related to MVA on their managerial and financial activities.

Nordeen, Norman L., "Asset/Liability Management: Does the Stock Market Care?" April 1988, pp. 33-50. The principal difference between generally accepted accounting principles (GAAP) and economic valuation is the time value of money. The difference means that GAAP returns on equity over time appear more smooth than do economic returns. Does the stock market apply a time value to money? Comparison of company stock prices with company economic returns and GAAP returns suggests that projected economic returns can better forecast swings in company stock prices.

Nordeen, Norman L., "Property-Casualty Shareholder Value." July 1993, pp. 21-27. This is a sequel to the 1987 article on asset/liability management by Mr. Nordeen. Since 1987, valuation technology has been improved to incorporate capital requirements and costs. This paper discusses: 1) how the thesis of correlated stock price and economic net worth has fared since 1987, 2) what is technologically new and how does it improve our ability to explain what drives stock prices, and 3) why we should care about understanding the behavior of stock prices.

Zietz, Emily Norman and Ford, William F., "The Use of Inflation-Indexed Treasury Securities in the Life Insurance Industry." Winter 1997, pp. 17-20. This article examines the characteristics and implications of the new Treasury inflation-indexed securities for the insurance industry. The authors suggest that life insurance companies especially may find these securities suitable for reserve investments as well as an ideal base for annuity products since they alleviate inflationary risk.

Health Care
Brown, Robert L., "Health Care Costs in an Aging Canadian Population." February 1991, pp. 1-16. The cost of health care has been rising more rapidly than other costs in a number of countries. A large measure of this increase is related to new treatments and the growing extent of care. Also, there has been a gradual long-term increase in life expectancy. There looms on the horizon, however, a potential for dramatic increases in health care costs, as the post World War II baby boom generation ages. The author explores the Canadian situation, including comparisons to the U.S. and other countries.

Christopherson, David L., "Life After Health Care Reform: Insurance Industry Implications." Winter 1994, pp. 1-15. After nearly 50 years of debate, it remains in doubt whether the United States will realize universal health coverage in the foreseeable future. Even though no comprehensive national health care legislation was enacted in 1994, private life and health carriers have not been ? and cannot be ? complacent about the future. Economic, demographic, social, technological, and political forces are likely to continue their rapid reshaping of the roles to be played in local health care financing and delivery arenas. It is becoming fairly clear that in order to be successful, third-party commercial health insurers will have to choose new strategic courses that lead to closer alignments with patients and/or providers. As a corollary, new research directions are indicated. 

Gasbarre, Lisa, "Medical Subrogation as a Cost-saving Measure for Health Care Payors." February 1991, pp. 59-62. As the health care debate livens and the question of who will pay remains unanswered, the author discusses how health care payors might strengthen their financial position in the health care community through aggressive subrogation activity, thus continuing to provide their subscribers with stability in health care and, quite possibly, added benefits.

Holland, David M., "AIDS: Recent Trends and Health Care Costs." February 1991, pp. 27-40. There have been a number of advances in the worldwide effort to bring Acquired Immunodeficiency Syndrome (AIDS) under control. From changes in immigration policy to the introduction of new treatments and the development of experimental vaccines, the front is very broad. The scope of the effort presents a number of implications for health care costs and the insurance industry. In this paper, the author surveys recent trends and health care costs to give a report of the situation as it currently stands.

Hollman, Kenneth W., Hayes, Robert D., and Abbasi, Sami M., "Tennessee's Health Care Reform: Promises, Prospects, and Problems." Fall 1994, pp. 27-40. With health care reform at the federal level being postponed, attention is turning to state efforts. There are proposals under consideration that would limit federal policies to building enabling legislation and infrastructure supports for state health coverage programs. The authors describe one such state program in Tennessee and suggest approaches to establishing success criteria and measurement tools.

Hunt, Robert M., "Twenty-four Hour Coverage in Context." March 1994, pp. 17-28. The issue of 24-hour coverage has become a major discussion element in the debate surrounding health care reform. This article, surveying the 24-hour coverage debate, continues a series of papers and communications exploring the implications of various components of health care reform proposals.

Maatman, Gerald L., "Health Care Reform and Property-Casualty Insurance." October 1993, pp. 67-72. From his perspective as CEO of the Kemper National Insurance Companies, the author maintains that insurers need to avoid the mistake of thinking that health care reform is only the concern of health insurers. He explains why property-casualty insurers need to be concerned about how workers’ compensation will fit into any system.

Sullivan, Cynthia B., "Health Coverage in the Small Employer Market." February 1991, pp. 41-58. Employers provide access to health insurance for the bulk of the American public. Yet of the 12% of Americans who do not have health insurance coverage, three out of four are workers. A significant number of these work for small employers. What does health care in the small employer market look like, and how does it compare to other segments? The author surveys the small employer health insurance market.

Sullivan, Cynthia, "Monitoring Attitudes About Health Care." November 1990, pp. 55-66. Dr. Sullivan presents results from two major annual surveys done by the Health Insurance Association of America to monitor attitudes toward health care: Monitoring Attitudes of the Public (MAP) and the HIAA Employer Survey.

Human Resources
Castlen, Peggy, "Managing and Valuing Diversity." Summer 1994, pp. 59-70. The author maintains that a strategic direction of the future is the intelligent management of the human resources of an organization. It is within this context that the author discusses the value of managing diversity at Nationwide. Beginning with a review of the implications suggested by the Workforce 2000 study, she describes the composition of Nationwide’s workforce, what new team management directives are being used, and how these human resources issues can affect the bottom line.

Cloutier, Sandra B. and Hartley, Harry J., "Time Management and Personality Hardiness: An Empirical Study of Insurance Executives." July 1990, pp. 45-56. Successful insurance executives usually are effective managers of their time. Is this the result of good time management training and practice? The sum of several personality factors – as measured by "personality hardiness" – appears to play an important role in predicting effective time management, once the effects of age, gender, and job level are removed. This has important implications for the design and content of executive training programs concerning effective time management.

International
Belton, Edward, "A Vision of the Financial Services Sector in Canada." Spring 1998, pp. 51-56. Property and casualty insurance in Canada is in the midst of changes that are more profound than anything that has happened in the past. In this article, the author describes two of the most important marketplace developments, the emergence of direct response distributors and the convergence of financial services suppliers, and comments on the forces that drive these developments. He provides a vision of the future of the entire financial services sector, a vision which has major implications for the insurance industry internationally as well as for Canada.

Cloney, Gordon, Poortvliet, William, Hite, Thomas, and Schleisman, Steve, "Planning for International Markets." Spring 1995, pp. 47-60. This article consists of edited remarks made by the panel on international insurance markets at the 1993 S.I.R. Annual Conference. Gordon Cloney, President of the International Insurance Council, begins with some background on the size and dynamics of the international insurance market. He is followed by William Poortvliet, Executive Vice President and Chairman of MetLife’s International Insurance Companies, who summarizes his company’s experience in the international market through 1993. Thomas Hite, President, Zurich International-U.S., comments on the attractiveness of the U.S. market from the point of view of an overseas company, and provides insights on what criteria Zurich uses to evaluate a potential market. Steve Schleisman, President of AIU North America, discusses issues which he feels should be key to any company’s move in the international arena: defining a vision, determining the distribution channel, and assessing market stability.

Katrishen, Frances A. and Scordis, Nicos A., "The Global Expansion of Insurers: How They Can Gain Economies of Scale." Spring 1998, pp. 15-20. This is a summary of a study the authors conducted which shows that currently, multinational insurers achieve economies of scale but only up to a point. However, insurers with high levels of international expansion suffer diseconomies of scale. They conclude that to gain economies of scale from international expansion, insurers must manage the factors that affect their costs. Their complete study is forthcoming in a 1998 article in the Journal of International Business Studies. In this summary, the authors explain how multinational insurers can gain economies of scale as they expand globally.

Parker, Henry G., III, "Insurance in the New Europe: Impact on the Industry." August 1991, pp. 69-76. This paper focuses on how 1992 translates for insurance by examining the consequences for European and overseas insurance markets, for brokers, and for corporate and personal risk buyers. The author discusses impacts on competition, distribution methods, pricing, underwriting expenses, product innovation, protectionism, critical mass, and pollution and product liability. Other subjects covered include how the U.S. markets and brokers are coping and what future attractions a single European market might hold for present non-players.

Internet/Intranet
Escher, Mitchell F., "Understanding and Using the Net." Summer 1996, pp. 29-37. The author was involved with the development of the NAIC web server and home page. Based on his experiences with this effort, he offers some suggestions to insurance professionals on using the Internet. He covers basic terminology, implementation (choosing an access provider, browser, and development tools), home page contents, and insurance sites.

Grossman, Holly, "Glossary of Internet Terms." Summer 1996, pp. 55-56. This is a listing of definitions for basic Internet vocabulary words.

Grossman, Holly, "Internet Basics for Insurance Professionals." Summer 1996, pp. 19-27. This is an edited version of the presentation Ms. Grossman, Supervisor of Information Services at the National Association of Independent Insurers, made to the S.I.R. Internet Workshop in November 1995. The author begins with some background history about the Internet and then discusses who is on-line, what is on-line, and what advantages and disadvantages are involved in its use. She introduces some basic Internet vocabulary and provides tips on software options, important web sites, surf compasses, and gopher sites.

Herrick, Robert, "Using the Internet: A Broker Perspective." Spring 1997, pp. 39-41. The Area Managing Director at Sedgwick Global outlines how they use the Internet for general insurance research and information gathering as well as researching specific prospects and clients and communicating with worldwide markets.

Strazdon, Maureen, "Introduction to the Internet." Summer 1996, pp. 15-17. The author addresses three questions: Who amongst the insurance companies or within the insurance industry is using the Internet? What are the benefits to using the Net? What issues are problematic in its usage?

Trencher, Mark L., "The Internet as a Research and Communications Tool." Summer 1996, pp. 39-54. Mr. Trencher discusses using the Internet vs. traditional sources for research, provides general tips for using the Internet, reviews the basic rules for doing a search as he goes through a sample case study, and describes what economic and company data can be found on the Internet. A list of WWW bookmarks of interest to insurance researchers is also provided.

Trencher, Mark L., "Internet – A Powerful New Tool For Insurance Electronic Commerce." Winter 1997, pp. 1-6. In this article, the author discusses the role that the Internet can play in the insurance industry. This role extends far beyond sales, and includes a wide range of electronic commerce related activities. Internal versions known as intranets present new capabilities for connectivity within organizations, with agents, and with business partners. The Internet is being used to strengthen outsourcing as well.

Life Insurance
Bohl, David J. and Gardiner, Steven R., "The Future of Executive Benefits Financed with Life Insurance." July 1988, pp. 7-14. The Tax Reform Act of 1986 was at first believed to render life insurance less attractive as a financing vehicle for funding executive benefit plans. This view was in error. While the structuring of plans using life insurance must now be a little different, in most cases it is still one of the best financing vehicles available. In many cases it actually enhances the attractiveness of nonqualified plans.

Bohl, David J. and Gardiner, Steven R., "The Future of Executive Benefits Financed with Life Insurance (Continued)." January 1989, pp. 19-25. In the July 1988 Research Review, the authors argued that the Tax Reform Act of 1986 actually enhances the attractiveness of most nonqualified life insurance plans as financing vehicles for executive benefits. They suggested that while the structuring of plans using life insurance must now be a little different, in most cases, life insurance is still one of the best financing vehicles available. In this paper they continue to explore the implications of the Tax Reform Act on life insurance, beginning with the alternative minimum tax and finishing with a review of the major issues encompassing policy illustrations.

Chastain, James J., "The Effects of the AIDS Testing Law on the District of Columbia Life Insurance Market." May 1989, pp. 35-41. Economic theory argues that governmental interference in a competitive market will distort pricing and availability. The failure to achieve an equilibrium price means either shortages or illegal markets as buyers (and sellers) are unable to complete transactions at the published prices. This process may be underway in the District of Columbia as insurance companies appear to be reducing new production in response to attempts by regulators to restrict insurer use of information about AIDS in the writing of life insurance.

DeVaney, Sharon A. and Keaton, Emily J., "Determining Purchasers of Whole Life Insurance Using a Classification Tree." Summer 1994, pp. 33-45. To determine purchasers of whole life insurance, the authors apply CART (classification and regression trees) to data from the 1986 Survey of Consumer Finances, constructing married couples, singles with family, and total sample models. Their results indicate that the insurance purchase behavior of single household heads with dependents appears much more complex than that of either married couples or singles, suggesting insurers' marketing campaigns should be more tightly focused in this segment.

Rothchild, Ronald D., "Life Insurance: How to Handle a Bad Bargain." August 1991, pp. 33-40. A financial planner presents a case study in which he examines the attractiveness of a particular insurance offering. The appendix provides explanations of whole life and universal life insurance policies.

Loss Reserves
Briggs, Steven A., "Establishing Reserve Positions in Property-Casualty Insurance." July 1988, pp. 43-51. Most insurance researchers are not actuaries, and yet they often find themselves working on research projects involving the company's loss reserve position. A basic understanding of loss reserving, its methodology and tests for monitoring reserve adequacy, can be important to understanding the business context for a wide range of management questions. In this paper, the author, a practicing actuary, sets out for review a summary of basic loss reserving methods in property-casualty insurance.

Cozzolino, John M. and Mikolaj, Peter J., "Discounting Loss Reserves." Summer 1996, pp. 1-10. Improving the methodology for estimating loss reserves would measurably improve the determination of reserve adequacy. The authors assume that the problem can be recast to that of evaluating cash flows under uncertainty occurring at different times in the future. The solution proposed involves application of the exponential family of utility functions which combines a parsimonious approach to an immediate reserve discounting method related closely to the established (and accepted) regulatory practice. They conclude that the time is ripe for applying this theory of risk measurement which would give a practical and unified method for both the problems of risk-load and reserve discounting.

Market Assessment/Demographics
Fishman, Alana E., "Use of Demographics in Support of Business to Business Marketing." Summer 1995, pp. 53-58. This article is an overview of the strategic planning process used by the Standard Commercial Accounts business unit at Aetna. This process begins with an environmental scan, which consists of looking at personal demographics, business demographics, business climate, industry trends, and an internal (company) scan. The author briefly describes each step of this process, noting research sources for some of the demographics, and then presents a case study in which this type of analysis was used in determining opportunities in New Mexico.

Grayson, Harriet, "Demographics As Destiny." Summer 1994, pp. 47-57. The author provides statistics showing basic demographic trends in the "aging and browning" of America. She discusses a case study which illustrates how demographics can help in making a business decision in the banking industry.

Gruver, Kara, "Looking Within to Look Without." Summer 1995, pp. 59-73. The author proposes that there are some very simple concepts which are often lost in the mass of research that occurs in the insurance industry: most companies do not spend enough time identifying their "core" customers, quantifying the value of these customers, and engineering their systems and processes to ensure the loyalty of these customers. This paper suggests how companies can do much to improve their profitability by using internal data to target these segments, by "looking within."

Hodges, Ken, "The Availability and Quality of Demographic Information: A Census 2000 Update." Fall 1994, pp. 73-78. This article describes progress being made on the design of Census 2000, and the need for users of census information to voice their opinions on the preservation of detailed census data.

Matsoukas, James, "Market Opportunities: Aged to Perfection." Summer 1994, pp. 71-76. There are great opportunities in marketing to the age 50 and older segment of our population. They have more income, more assets, and also appear to have a surer sense of who they are than people younger than 50. In relating some generalizations from ITT’s personal lines research with AARP members, the author shows there is greater diversity in the 50+ market than there is in the under 50 market.

Mott, Susan, "Population Changes: Demography and Destiny." Winter 1994, pp. 27-40. This paper deals with five demographic trends that have had and will continue to have an important impact on American life in the foreseeable future. These trends are: the aging of our population, changing household and family structures, increasing ethnic diversity, the widening gap between the rich and poor, and the slowing of labor force growth. After discussing their impacts on our social structure, the author discusses their likely impacts on the insurance industry.

Mott, Susan H., "Retirement in the Next Millennium." Fall 1996, pp. 69-76. In order to understand what retirement may be like for the next generation of retirees, the author compares their prospective lot with other generations in terms of median real income, composition of income, sources of income, and average life expectancy. After considering Social Security reforms, she concludes that the proverbial 3-legged stool of retirement support (personal savings, pensions, and Social Security) will have a fourth leg in the next millennium – the work income leg, as realities of 1) a larger proportion of elderly in the population, 2) increased longevity, and 3) increased health and well being of the older population make lengthier work force attachment necessary and even desirable.

Ortman, Frederick W., "Segmentation for Profitable Growth: Geodemographic Cluster Analysis." Winter 1995, pp. 31-37. The author describes using the Prizm geodemographic cluster segmentation system to categorize customers and then, combining a market penetration analysis with a profitability model, to 1) define customer segments, 2) identify profitable customer segments, and 3) identify customer segments with a high potential for sales.

Vigorita, Charles A., Heismeyer, Cynthia B., and Dubel, Laurie, "Regional Impact of a New Plant: A Study of the Effects on Insurance Exposure Bases." Spring 1996, pp. 23-30. The construction of a new plant or a facility relocation can have a substantial influence on a regional economy. Scanning regional newspapers and other information sources can be of significant help to an insurance company planning its distribution system and marketing efforts. Agent force size and appointments, claims and service facility requirements, and marketing and advertising support and timing are all planning variables that can benefit from early identification of these regional economic changes. Critical questions, however, involve quantifying: 1) the extent of the economic impact with the immediate region, 2) the time involved, and 3) the geographic scope of the economic impact.

Market Research
Adler, Robert M., "Personal Observations on Changes in Market Research." July 1993, pp. 67-70. As companies have become more information dependent and as they have more tools available to gather that information, the author suggests that the old maxim "information equals power" has been replaced by "information overload equals paralysis." He suggests that in this environment market researchers can thrive. By listening to customers, keeping an eye on competitors, and scanning the horizon for emerging trends, the researcher is in an ideal position to encourage senior management to take informed leaps of faith, and to rethink business strategies rather than merely reengineer current processes.

Corrigan, Jane E., "Life and Property-Casualty Cross-Selling: Exclusive vs. Independent Agencies." April 1988, pp. 13-17. As insurance companies become more diversified, the cross-selling of life and property-casualty insurance increases in importance. A recent research project shows that exclusive agencies appear to be doing a better job of cross-selling than do independent insurance agencies. Neither distribution system, however, is close to reaping the potential benefits inherent to having a "fully covered" customer base.

Gasich, Anthony F., "Measuring Market Share: An Alternative to Written Premium." January 1989, pp. 27-32. Researchers have always been dissatisfied with the industry's "state by line" measures of market share. There are a number of reasons for the dissatisfaction, but they all boil down to the need for measures which can accurately track a company's share of a relevant market segment across jurisdictions (state or otherwise). The author discusses the various problems with the traditional premium share measure and proposes some possible alternatives.

Greenwald, Mathew, Jensen, J. Michael, Reid, Peggy, and Soruco, Gonzolo, "Reaching and Serving the ‘New’ America." March 1994, pp. 29-43. This article begins with a discussion of trends in diversity and ethnicity. The authors then consider: 1) changes in the areas of population growth, household configuration, and the purchasing buyer, 2) changes within two year and ten year time frames, 3) how to address the needs of various ethnic groups and special needs groups (such as the deaf community), 4) growth of the service center concept, and 5) the role of technology. The article concludes with the authors telling the one thing they would advise insurance companies to do as they try to reach the "new" America.

Howe, Neil, "Generations: The History of America's Future." December 1992, pp. 21-35. The author gives an overview of his best-selling book in which he proposes that the various generations (the G.I. Generation, baby boomers, and the 13th generation) fit into a pattern of four basic types: Civic, Adaptive, Idealist, and Reactive. Each of these have special lifestyle characteristics and attitudes that affect the social progress and economic growth.

Saporito & Associates and Mathew Greenwald & Associates, "S.I.R. Insurance Research & Planner Survey." Winter 1995, pp. 67-71. This report presents the results of a research study of 163 insurance professional respondents who are members of the Society of Insurance Research. The purpose of the survey was to gain a better understanding of who is currently performing insurance research and planning functions, regardless of whether they are in a centralized marketing, market research, or planning function or not, and to explore the challenges these practitioners face in staffing, technology, training, tools, and support. The survey presented such questions as: "Who is performing these functions? What training and education do they have? Whom do they work with and for? What tools do they uses?"

Springer, William, "Software for Market Research." December 1993, pp. 43-47. The author begins by defining the three levels of software: simple, commercial, and sophisticated. Then he gives examples of each category, briefly describing some of the available products and their capabilities.
Trencher, Mark L., "Seven Tips on Market Research for Insurers." Spring 1999, pp. 33-35. This article does a good job of laying out the framework for conducting actionable research. It also provides material that researchers can use to guide their clients’ discovery of the value of market research.

White, Michael D., "Shifting Customer Base: She's Come Undone." March 1994, pp. 45-51. The concept of "unbundling" is a useful principle meaning the act of pricing separately. The author uses it to describe a process driven by technology that has separated a group of elements in a package – in this case, financial products and services – and unfastened their previously fixed relationships to one another. After describing the unbundling of universal life, money market funds, securitization, life and health insurance, markets, distributors, and customers, he addresses how the financial services might prepare for an unbundled future.

Mergers & Acquisitions
Saboley, Jennifer, "1996 Mergers & Acquisitions in the Financial Services Industry." Summer 1997, pp. 19-33. The article is a summary of information taken from publications, web sites, and on-line services, compiled and organized by the author to provide merger and acquisition data on the financial services industry in a "side by side" context. In addition to listing key transactions of 1996 in the areas of life and health insurance, banking, money and investment management, and the international arena, the author reports industry analysts’ predictions for continued activity in these areas. The author credits her sources in the endnotes, providing valuable "how-to" information for others interested in pursuing similar research for internal company use.

Saboley, Jennifer, "Mergers & Acquisitions in the Financial Services Industry: January 1998 Update." Spring 1998, pp. 21-50. 1997 marked the third consecutive year of record merger and acquisition activity in the U.S. and abroad, fueled by a favorable stock market, regulatory and technological changes, and the desire by corporations to do big strategic transactions, according to The Wall Street Journal. The author lists key financial services transactions of 1997 in the areas of life and health insurance, banking, money and investment management, and the international arena as well as industry analysts’ predictions for future activity in these areas.
Saboley, Jennifer, FLMI, "Mergers & Acquisitions in the Financial Services Industry: 1st Quarter 1998." Summer 1998, pp. 1-29. This article summarizes first quarter 1998 merger and acquisition activity in the financial services industry compiled by the author from publications, web sites, and on-line services.
Saboley, Jennifer, FLMI, "Mergers & Acquisitions in the Financial Services Industry: October 1998 Update." Spring 1999, pp. 1-18. This article summarizes third quarter 1998 merger and acquisition activity in the financial services industry compiled by the author from publications, web sites, and on-line services.
Saboley, Jennifer, FLMI, "Mergers & Acquisitions in the Financial Services Industry: January 1999 Update." Spring 1999, pp. 19-32. This article summarizes fourth quarter 1998 merger and acquisition activity in the financial services industry compiled by the author from publications, web sites, and on-line services.

Planning - Process
Bell, Michael A., "Designing a Planning System." August 1991, pp. 49-68. In simplest form, there are two questions which strategic planning should answer: 1) How structurally attractive is the business or industry that your company is in? How much money can it make? and 2) What is your firm’s relative position within that industry? Part I of this article deals with answering the first question, Part II discusses how a firm can determine its relative position and how it goes about creating a sustainable competitive advantage, and Part III deals with general questions related to testing the quality of a company’s strategic plan.

McKechnie, Ian, "Developing Business Plans: Use of Computer Models in Premium Budgeting." Spring 1996, pp. 47-53. This article is an edited version of the author’s presentation at the 1995 Casualty Actuarial Society’s Dynamic Financial Analysis Seminar. Mr. McKechnie describes a business planning process that used a simple spreadsheet model to facilitate preparation of premium forecasts. The model was designed to enhance the business planning process by automating the arithmetic calculations involved in producing an internally consistent forecast.

Planning - Trend Assessment
Aldrich, Ronald, "Changing Sand Dunes: Insurance in the 1990's." February 1991, pp. 63-66. This is an overview of what the author perceives are important changes impacting the future of the insurance industry. These include advancements in technology, innovations in marketing practices, attempts to improve industry image, ramifications of a global outlook, efforts to improve the automobile line of business, and effects brought upon the health industry by the "graying of America."

Bader, Edward F., "Insurance Industry Futures: Setting a Course for the 1990's." January 1989, pp. 37-39. The author reports the key findings from the study of the same name conducted by Arthur Andersen & Co. and the Life Office Management Association.

Bader, Edward F., "Vision 2020: Observations About the Insurance Marketplace." Summer 1995, pp. 1-7. The major issue today for each insurance company is: how can it compete in the marketplace 10-15 years from now. The author discusses five critical success factors: financial stability, strong capital management, efficient systems for distribution, sophisticated investment approaches (including the use of derivatives), and understanding the customer.

Borowski, Patricia A., "Coping with Industry Instability." July 1992, pp. 49-57. The entrance of new competitors into the traditional insurance marketplace is well underway. The author claims the major threat is the failure to recognize there are models that can be used to identify the major directions of change. An analogy is drawn from the mortgage industry to build her case.

Casson, John J., "The Use of Economic Information in Corporate Planning." November 1990, pp. 39-48. Economic developments are recognized by insurance executives to affect sales and profitability. On a recent survey, 93% answered in the affirmative to this question. Yet on that same survey, significantly fewer than half indicated fully using economic information to adjust their company's strategic plans. According to the author, how well insurers use economic information for planning will determine their ability to compete in the 1990s.

Christiansen, Stephan L. and Sargent, Thomas D., "Managing the Property-Casualty Insurance Cycle: Investor Perspectives." May 1989, pp. 43-59. The cyclical interaction of property-casualty insurance profit and growth is well known. If an insurer's management were to know how the cycle influences the company's ability to grow (and to produce profit) and where the industry was in the cycle, it would be possible to manage to a higher level of performance. Whether the insurer is a stock company or a mutual, there are advantages to timing certain actions to coincide with the industry's position in the cycle.

Clones, Daphne, "Business Outlook in the Fifty States: Who is Doing Best?" Summer 1995, pp. 25-29. Ms. Clones’ remarks are based on a presentation she made to the S.I.R. Planning & Economics Conference in May 1995. She begins by describing the traditional view of what makes for a good business climate. Then she discusses some specific findings that contradict this view, and outlines the "more holistic" view held by the Corporation for Enterprise Development. Her presentation concludes with some statewide and regional trends which are based on CFED’s annual publication, The Development Report Card for The States.

Doyle, Forrest C., "The Measurement of Growth and Retention in Property-Casualty Insurance." May 1989, pp. 1-34. Virtually all property-casualty insurance companies produce monthly exhibits showing policy and premium growth and retention. There are a number of researchers and planners, however, who do not believe the standard reporting formats are very helpful to forecasting. Indeed, the tendency for reported growth and retention data to jump around from month to month tends to cloud our understanding of the processes at work. The author reviews the problem and offers some approaches that appear to give significantly more reliable forecasts.

Duffy, Kenneth J., "Strategic Planning Issues for the Coming Year." August 1991, pp. 41-48. The author proposes it would be difficult to find a period over the post World War II years when we have experienced a convergence of so many events and issues with negative implications for the insurance business. He selects four issues to expand upon: profitability, legal and regulatory issues, workers’ compensation, and public image.

Holdrich, Martin K., "Prospects for U.S. Economic Growth to 2015." December 1993, pp. 7-18. The author begins by discussing overall national trends in employment growth, then goes to various regions of the country to show how some regions grow at a faster rate than others. He concludes with statistics on where most of the population and employment growth is expected to occur during the next two decades in the U.S.

Holdrich, Martin K., "Prospects for U.S. Economic Growth to 2015," Summer 1995, pp. 13-23. In the December 1993 Research Review, Mr. Holdrich discussed the Woods & Poole outlook for U.S. economic growth as a whole. As he feels the outlook has not changed very much, in this paper he focuses on the regional implications of that same outlook. First, he looks at regional projections of the greatest job growth in the U.S. over the next 15 years. Second, he looks at the fastest job growth. Third, he combines the two forecasts and looks at metropolitan statistical areas with both the fastest and greatest growth. Finally, he looks at four specific metropolitan areas and discusses reasons why each of those particular MSAs will be growing and shows how they are analogous to others.

Huber, Gary L., "The Insurance Game: 1996 Edition." Fall 1996, pp. 59-62. From his perspective as CEO of United Fire and Casualty Company, the author focuses on several challenges facing insurance companies in general, and in the Midwest in particular. One opportunity that he describes is the growing ethnic market.

Mahaffie, John B., "Forces of Change: Doing Business in the Next Millennium." Fall 1996, pp. 1-13. A noted futurist takes a look at our changing world and outlines what we can expect in terms of our economic future, the implications of changing business trends, and the relevance of planning. Topics covered include: structure of society, the U.S. economy, the future corporation, the changing workforce, a three world model, the impact of information technology, the evolution of electronic images, genetics, macroengineering, and global governance.
Marcon, Fred R., "Critical Trends Transforming the Industry." Spring 1999, pp. 37-43. This CEO perspective was the keynote address given by the Chairman, President and CEO of Insurance Services Office, Inc. to the Society of Insurance Research Annual Conference in Charleston, SC on November 17, 1998. In it, he discusses globalization, consolidation, and convergence of financial services business, tapping capital markets and the emergence of technology and electronic commerce.

McKeon, James C., "Tying It All Together: One Strategist's Perspective." December 1993, pp. 19-29. The author gives his perspective on the forces that shape the insurance industry: customer demand structure, customer focus, economic forces, technology forces, regulatory and legislative forces, and competitive forces. He offers some management strategies for responding to these forces.

Mills, Evan, "Energy Efficiency: No-Regrets Climate Change Insurance for the Insurance Industry." Fall 1996, pp. 21-58. The worldwide insurance industry faces great financial risks from natural disasters caused by global climate change. Insured losses from extreme weather events such as windstorms, drought, and floods have been steadily rising. This article provides an overview of opportunities for the insurance industry to support energy-efficiency and better indoor air quality as a "no-regrets" strategy for improving its near-term business position while helping to reduce risks from greenhouse-gas emissions that threaten the industry in the long run. The author describes specific technologies that prevent insured losses while increasing energy efficiency, outlines potential roles for the industry in increasing energy efficiency, and discusses steps the industry could take to tap these strategic benefits.

Nutter, Franklin W., "Insurance and the Natural Sciences: Partners in the Public Interest." Fall 1996, pp. 15-19. The insurance industry is recognizing that with respect to seismic exposure, climate, and weather-related natural catastrophes, the paradigm has changed. The author discusses how insurers can play a more meaningful role by providing incentives and disincentives related to natural catastrophe exposures, encouraging appropriate building codes, researching building materials and designs, supporting weather and climate research and monitoring, and educating policyholders on steps they can take to reduce risk. In addition, a list of actions the industry might take to encourage energy efficiency to improve the climate is given.

O’Connell, Robert J., "A Revolution in the Making." Spring 1997, pp. 31-38. This is an edited version of the keynote address which the author, President and CEO of the AIG Life Companies U.S., presented to the S.I.R. Annual Conference in November 1996. In it, he discusses what he considers the essential elements of a strategy for growth and profitability in the next decade: diversity of product, diversity of distribution, creativity, and successfully competing with banks by joining with them in ventures.

Parker, Henry G., III, "Insurance in the New Europe: Impact on the Industry." August 1991, pp. 69-76. This paper focuses on how 1992 translates for insurance by examining the consequences for European and overseas insurance markets, for brokers, and for corporate and personal risk buyers. The author discusses impacts on competition, distribution methods, pricing, underwriting expenses, product innovation, protectionism, critical mass, and pollution and product liability. Other subjects covered include how the U.S. markets and brokers are coping and what future attractions a single European market might hold for present non-players.

Sargent, Thomas D. and Yankus, William L., "Strategic Implications of Structural Changes in a Cyclical Property-Casualty Market." December 1989, pp. 13-23. Management of insurance companies increasingly means "managing the cycle." The cycle, however, is not closed. There are other forces afoot. The authors review several modifications to the cycle management formula in response to what they call revolutionary changes occurring in the industry. While the authors' interest centers on stock companies, the implications of their arguments suggest opportunities for most companies to strengthen their positions in the industry.

Simon, LeRoy J., "Focus on the Future." April 1988, pp. 1-7. Looking to the past provides important insights into the processes which shape the future. But for the insurance industry history is being rewritten by the courts, by regulators, and by new accounting procedures. There is a strong need for continuing, thoughtful review of industry change and for much more aggressive work with the business and legal environment. The paper is based on Mr. Simon's keynote address at the 1987 Society of Insurance Research Annual Conference.

Sweeney, L. E., and Williams, Numan A., "Interest Rates and Investment Returns for Property and Liability Insurers." July 1993, pp. 1-6. Insurance companies are in the risk transfer business, and we commonly think of the obvious transfer of risk of loss from insured to insurer. Insurers then frequently choose not to bear all of this risk themselves, transferring part of it away to reinsurers. The insured was not directly involved. But during the past two decades, insurers have begun to include investment income in rate making decisions. The authors examine the relationship between investment returns and changes in premium to test the hypothesis that insurers may be transferring some investment risk back to insureds.

Tharp, Billie J., "Retaining All the Customers You Want." Winter 1995, pp. 57-65. In this paper on customer retention, the author describes the Agency Insurance Strategy (AIS) concept in practice at the Kentucky Farm Bureau Insurance Company.

Weiner, Edith, "A View from the Future: Emerging Trends and the Coming Economy." Winter 1994, pp. 17-25. The author, a noted consultant in the field of preparing for and managing change, discusses social trends, demographic trends, political trends, the disappearance of the middle class, technological change, transitioning, the women’s segment for financial services, disintermediation, and just-in-time marketing.

Yohn, Frederick, "Coping with Fundamental Change in the Insurance Industry." July 1992, pp. 59-67. This paper focuses on some of the many ways that environmental analysis can be used in planning for some of the fundamental changes that are occurring in the insurance industry. The author discusses the redistribution of our population by age brackets, competition within the industry, the muted economic growth forecast, cost reduction pressures, modest employment growth, and the growing importance of small business.

Product Development
Pahl, Teresa L., "Product Development Approaches in the Insurance Industry." July 1988, pp. 37-41. The pace of new product development within the insurance industry appears to be on the rise. It is argued that the insurance cycle, the entry of new competitors from outside the traditional insurance industry, and the increasing sophistication of insurance customers all are causing insurers to expand their product research and development efforts. What is the "standard" development process followed by insurers?

Roy, Robert A., "An Approach to New Product/Service Concept Testing." April 1988, pp. 23- 32. In attempting to measure new product potential, market researchers normally follow a variation of the "Tauber Paradigm." The paradigm argues that intent-to-purchase ratings given to a new product in a market survey are much more reliable where target customers also rate the new product as addressing an important problem (i.e., problem, importance, leads to intent-to-buy). This "straightforward" approach is sometimes called monadic concept testing. Conjoint analysis appears to further add value to these ratings scores by allowing estimates of incremental revenue that can be expected from the new product or service.

Public Policy Issues - Availability & Affordability
Sprinkel, Elizabeth A., "The Image of the Property & Casualty Insurance Industry from the Consumer’s Perspective." Summer 1997, pp. 49-67. The author discusses the Insurance Research Council’s 1995 and 1996 Public Attitude Monitor surveys and the Fairness and Balance in Residential Property Insurance survey. Respondents’ satisfaction with their auto insurer, their satisfaction with homeowners and renters insurance, their insurance shopping habits, their ease in finding the desired type of insurance, their image ratings for the industry, and their perceptions concerning the claims process are discussed.

Warfel, William J. and Hamwi, Alex, "Actuarial Practices vs. Social Considerations: The Inner-City Property Insurance Problem." Spring 1996, pp. 13-22. Underwriting practices having a disparate impact on residents of inner-city neighborhoods have been targeted as racially discriminatory by the Federal Housing and Urban Development Department (HUD). This article considers whether HUD has regulatory jurisdiction under the Fair Housing Act with respect to these underwriting practices. Proposed solutions to the availability and affordability problem that exists with respect to homeowners insurance for inner-city residents are discussed.

Lobert, John C., "The Regulation of Insurance and Urban Markets." Spring 1996, pp. 37-42. This article by the Senior Vice President – Governmental Relations for the National Association of Independent Insurers discusses the regulatory and legislative issues being debated in Washington with respect to the availability of property insurance and redlining. Actions that could be taken by state regulators and state lawmakers to aid in the availability of homeowners and automobile insurance in urban areas are outlined.

Lobert, John C., "The Inner-City Property Insurance Problem." Summer 1996, pp. 61-64. In this letter, Mr. Lobert challenges some sections of the article by William Warfel and Alex Hamwi on inner-city property insurance problems in the Spring 1996 Research Review. A response by Mr. Warfel and Mr. Hamwi is included.

Public Policy Issues - Fraud
Baker, Kathryn and Edelhertz, Herbert, "Fighting the Hidden Crime: A National Agenda to Combat Insurance Fraud," a reprint of their executive summary. December 1992, pp. 47-50. In this report, the authors, working with the Insurance Information Institute, provide an analysis and recommendations for a national agenda for fighting insurance fraud. They outline four actions: public education and outreach programs, anti-fraud procedures and training, maintaining databases, and working with legal and regulatory systems.

Segraves, Donald W., "Insurance Fraud in the 1990s." Winter 1994, pp. 41-51. The author presents data gathered by the Insurance Research Council indicating that fraud and build-up are indeed occurring, and recommends actions the industry can take. Investigating suspicious claims, increasing public awareness, and creating fraud bureaus are discussed.

Whiddon, Roger, "Practical Steps Towards Insurance Fraud Detection." Spring 1998, pp. 1-7. Insurance fraud is a problem that has become increasingly costly for the insurance industry. The Coalition Against Insurance Fraud estimates the 1994 annual cost to be in excess of $67 billion per year – and growing. Insurance companies vary in their reaction to fraud, from denial that a problem really exists, to a "get tough" approach with highly publicized cases of insurance fraud convictions. In this article the author, currently coordinating the development of insurance fraud detection systems for The Travelers, describes various methods that can be used in identifying those involved in fraudulent claims: fraud awareness training, on-line red-flag review, behind-the-scenes red-flag review, interactive expert systems, statistical modeling, outlier detection, and link analysis.

Public Policy Issues - Regulation
Abbasi, Sami M. and Hollman, Kenneth W., "Managerial Obsolescence: Organizational Malaise of the 1990s." Spring 1995, pp. 1-13. When American business is faced with urgent and strategic choices and challenges, it looks to its organizational leaders for answers. With United States dominance in both management innovation and product quality under siege, many management observers attribute America’s deteriorating competitive position to poorly educated and motivated workers. However, a careful examination of the facts suggests that the most serious shortage of skills lies not with American workers but with their managers. This shortage is evident in insurance, explaining to some degree why insurance mergers and consolidation are so common during a time of otherwise abundant capital inflow to the industry. In this paper, the authors discuss basic elements of reengineering which they believe can have a positive impact on insurance management skills. They also suggest some guidelines for insurance managers to consider in dealing with diversity in the workforce.
Colquitt, L. Lee, Norman H. Godwin, and David W. Sommer, "An Examination of Lobbying by U.S. Life/Health Insurers." Summer 1998, pp. 31-38. Life/Health insurers have a vital stake in the outcome of legislative activities and regulatory decisions. Not surprisingly, then, these firms spend substantial sums on lobbying activities. In 1996 alone, life/health insurers spent over $24 million on lobbying. This article explains where to find information on individual insurer lobbying expenses and examines some of the characteristics of lobbying expenditures by life/health insurers. Included is discussion of the major recipients of these expenditures and the variation in expenditures across states.

Dineen, Michael F., "Update on Superfund, Natural Catastrophes, and Medical Records Confidentiality Legislation." Summer 1996, pp. 11-13. The author summarizes the current status of three public policy issues of interest to the insurance industry: 1) the effort to reform and re-authorize the federal Superfund hazardous waste cleanup program, 2) the effort to enact a federal natural catastrophe law, and 3) the significant implications of medical records confidentiality legislation (such as S. 1360 authored by Senator Robert Bennett) on the property-casualty segment of the industry.

Dwyer, Maureen Q., "Regulation & Legislation: Critical Issues for the 1990s and Beyond." February 1993, pp. 15-20. The author addresses the topic from the perspective of the smaller insurance company, commenting that federal legislation may impose dual regulation upon companies and that risk-based capital standards may adversely impact small insurers who lack access to the equity markets. Another area of concern which she discusses is rate suppression.

Gifford, Donald G. and Pfennigstorf, Werner, "A Comparative Study of Liability Law and Compensation Schemes in Ten Countries and the United States," a reprint of the concluding chapter from their book of the same name. December 1992, pp. 51-57.

Huberman, Richard L. and Wright, Andrew S., "Redlining in Insurance: A Discussion of H.R. 1188." Fall 1994, pp. 57-71. The article provides background for the passage of H.R. 1188, the Anti-Redlining in Insurance Disclosure Act. The authors debate the issues involved in implementing the legislation from the perspectives of the U.S. House Subcommittee on Commerce, Consumer Protection, and Competitiveness (Committee on Energy and Commerce) and the American Insurance Association.

Johnson, Carolyn J., "Regulatory and Legislative Issues." Spring 1996, pp. 31-35. This is an edited version of the author’s presentation to the 1995 S.I.R. Annual Conference, in which she gave an overview of how the National Association of Insurance Commissioners’ approach to regulation and legislation reflects its focus on the insurance consumer. The article discusses the NAIC accreditation program, the development of model laws, committees and working groups, technology assistance, the NAIC databases, and the NAIC home page.
Kibbee, Larry E., "Defining the Regulatory Mission." Spring 1999, pp. 51-54. The author maintains that the regulatory system is at a crossroads because insurance companies and other financial institutions are being forced by new technology and a new breed of consumers to change the traditional methods for delivering financial services. He discusses H.R. 10 and the IRC’s Public Attitude Monitor, and suggests that regulation be defined in terms like re-engineering, uniformity, standardization and efficiency.

Minkowitz, Martin, "Insurance Regulation and Legislation in the 1990s." February 1993, pp. 21-44. The author discusses the perception that state regulation of insurance has failed and reviews the arguments for modifications to the present system, as well as the benefits of state regulation over federal regulation.
Nordman, Eric, "Insurance Regulation in the Modern Age." Spring 1999, pp. 55-60. The author, Director of Research with the NAIC, discusses a 1998 white paper on regulatory reengineering of the commercial lines industry, current NAIC reengineering activities, and the Year 2000 computer bug.

Oxfeld, Eric J., "The Regulatory and Legislative Environment for Workers’ Compensation." Fall 1996, pp. 63-67. The author, Assistant General Counsel for the American Insurance Association, discusses the nationwide reform efforts of the AIA at the state level. He reviews the AIA program which includes both benefits reform and rating reform, and then comments on numerous challenges yet to be faced.
Rogers, Richard D., "The Changing Landscape of Insurance Regulation." Spring 1999, pp. 45-49. The author, Deputy Director of the Consumer Market Division at the Illinois Department of Insurance, describes why consumers will continue to force changes in the industry and how, as a result of consumer pressure, competition will take new forms, which will lead to changes in regulation.

Segraves, Donald W., "Keys to Understanding the Insurance Environment." July 1990, pp. 57-66. The author cites research reflecting a downturn in public perceptions of property/ casualty insurance providers. The study findings reviewed are from the Public Attitude Monitor (PAM) conducted by the Insurance Research Council.

Troy, John F., "The 1996 Regulatory and Legislative Environment for Health Care." Spring 1997, pp. 43-45. In his presentation to the 1996 S.I.R. Planning & Economics Conference, the author describes the regulatory and legislative environment of 1996 from his perspective as Vice President of the Health Insurance Association of America.

Wilson, John B., "Regulatory Issues Affecting Insurer Use of Consumer Reports." Spring 1996, pp. 43-46. There are many laws either at a state or federal level that in one way or another impact an insurer’s ability to identify and attract customers. The author discusses the way Equifax approaches some of these issues, particularly the idea of consumers’ rights and making some effort to balance the consumer’s desire for privacy with the companies’ need for information that allows them to adequately price a product to that consumer. Disclosure and dispute resolution, lifestyle underwriting criteria, and limitations on usage of credit information are covered.

Public Policy Issues - Solvency
Anderson, Dan R., "A New Regulatory Approach to Prevent Insurance Company Insolvencies." December 1992, pp. 1-19. The philosophy of regulation is that it protects society from the adverse consequences of competition, in situations where it might injure otherwise informed and prudent consumers. Insurance companies accept money in trust in return for future, conditional benefits. Improper – or imprudent – management actions under competition can lead to insolvencies, which hurt large numbers of people, and governments have traditionally regulated insurers. Society pays for regulation through taxes and slightly higher prices. Is society getting its money's worth from insurance regulation? This paper won the 1992 Society of Insurance Research Competition for original scholarship on insurance company insolvencies.

Duett, Edwin H. and Hershbarger, Robert A., "Identifying Financial Distress in the Property-Casualty Industry." October 1993, pp. 33-45. In this paper the authors examine three analysis approaches – multidiscriminant, logit, and an expert system – in an exploration of variables designed to assess the financial solvency of property-casualty insurance companies. The purpose of any model is to give fair and timely evaluations of insurer financial health for purposes of solvency regulation. The authors show that the choice of the model selected has an important impact on the applicability and efficiency of the different assessment variables.

Hur, Yeon, "Considerations in Evaluating Solvency of Captive Insurers." Fall 1994, pp. 41-55. Captive insurance, as a viable risk management tool, has become an essential component in the property/liability insurance industry. However, captive insurers have experienced a relatively high insolvency rate in comparison to traditional property/liability insurers. Some direct causes of this greater insolvency rate involve significant changes in mix of business, inadequate pricing practices, and rapid expansion. Also, indirectly, the greater insolvency rate is due in part to a comparatively liberal regulatory environment and the lack of an insolvency surveillance system for captive insurers. Because several characteristics of captives differ from those of traditional insurers, this study argues that state regulators are restricted in the application of conventional surveillance techniques to captive insurers. As one alternative to the conventional methods, the author proposes a logistic model with seven variables to be applied in predicting the solvency of captive insurers.

Lamb, Jeffery W., "Insurance Insolvencies: A Comparison with the Savings & Loan Industry." July 1993, pp. 7-20. The author argues that to say the insurance industry faces problems analogous to those earlier faced by savings and loans is incorrect. A number of differences are surveyed, and the conclusion drawn that they will likely lead toward a significantly different outcome. The author's bibliography is especially helpful for those interested in this issue.

Wadyka, Walter, "Economic Valuation and Solvency Regulation." February 1993, pp. 1-14. Insurance company risk and failure are both increasing. Solvency regulation is being tightened and risk based capital models are being pursued for both property-casualty and life-health insurance. A factor in the utility of these models, however, is the value placed on insurance assets and liabilities. Economic valuation assigns market-clearing rates. This paper expands a discussion begun in this journal in 1988.

Re-engineering
Lunn, Joseph K., Parker, Donna, and Odermatt, Bruno, "Reengineering Workflows at Maryland Insurance Group." July 1993, pp. 41-49. The authors describe and review a reengineering program completed at Maryland Casualty. The restructuring of workflows involved the commercial lines operations and included both home office and field office processes.

Reinsurance
Hunt, Robert M., "Financial and Loss Portfolio Reinsurance." July 1993, pp. 29-39. The author explores the increasing use of portfolio reinsurance by companies to enhance surplus and to manage the financial needs of mergers and acquisitions. The article identifies the essential components of portfolio transactions as they relate to their use as a financial instrument via reinsurance.

Hunt, Robert M., "Financial and Loss Portfolio Reinsurance," an addendum to his July 1993 article. December 1993, pp. 51.

Research/Statistical Analysis
Blue, Ronald K., "Personal Computer Graphics: An Explosion in Ad Hoc Graphics for Management Reporting." July 1988, pp. 27-36. The use of ad hoc graphics (graphics done only once and then not repeated) for management reporting has grown rapidly over the past decade. The factors behind this growth are changes in the size of PC memories and widespread introduction of new graphics software. The high quality of the new graphics packages makes the PC a natural choice to produce the kind of graphs that once were found only on a mainframe.

Brown, Jane Lightcap and Forbes, Stephen W., "Meeting New Challenges Through LOMA Research," a research update. December 1992, pp. 59-63. The LOMA reports summarized in this article focus on establishing and assessing effective strategic management, capital management, and strategic alliances. They also evaluate demographic factors that will strongly affect the insurance business in the 1990s and assess the guaranty fund system and the activities of insurance industry rating agencies.

Collesano, Stephen, "Tips for Questionnaire Development." December 1993, pp. 31-32. The assumption of survey research is that people will offer honest, forthright opinions on the subject at hand. It is a generally valid assumption, unless you annoy, confuse, or somehow irritate respondents with your questionnaire and approach. The author provides a list of suggestions for self administered mail/telephone questionnaires.

Flynn, Christine, "Insurance Research Sources: Print Products." July 1993, pp. 51-56. The author lists print sources by type of information: competitive analysis, rating services, company information, industry associations, and international reports.

Jablonowski, Mark, "Dealing with Fuzziness in Imperfect Information." Spring 1996, pp. 55-58. Decision making in insurance and risk management is subject to two types of uncertainty. One stems from randomness, and is specified using probability. The other, often less recognized, is the uncertainty that results from knowledge imperfection. This uncertainty, known also as fuzziness, can be formalized using membership functions. These functions approximate relationships between fuzzy concepts and the numerical properties of the real world. The author concludes what we don’t know can be just as important as what we do and suggests several books for more information on fuzziness.

Pernica, Joseph, "Segmentation in the Insurance and Financial Services Industry." April 1988, pp. 19-22. The principles of market segmentation and positioning have been widely accepted in the financial services industry. Yet, a key related issue – which consumer characteristics should be the basis for segmentation and positioning – remains unresolved. Segmentation on product benefits and life-styles, as borrowed from packaged goods, has been unsatisfactory in this market, producing segments unrelated to consumer behavior. This article shows that as a multi-product category, the financial services market has a unique hierarchy of needs in which the desired product mix is the crucial distinguishing consumer characteristic for strategic and positioning purposes. The desired product mix must, therefore, be included in the segmenting formula.

Roy, Robert A. and Struhl, Steven, "Limitations of Discrete Choice Modeling." March 1994, pp. 53-55. This article contains a discussion of conjoint analysis and discrete modeling functions.

Roy, Robert A. and Struhl, Steven, "Analyzing Surveys [or Stalking the Wild Questionnaire]." December 1993, pp. 33-41. Topics covered in this article include: starting right by collecting good data, defining objectives, maintaining reasonable survey length, eliminating bias, asking clear and concise questions, avoiding unanswerable questions, conjoint analysis, discrete choice modeling, qualitative research, and the pros and cons of analytical methods.

Saporito, Patricia L., "Insurance Industry Research Resources: Insuring Your Research Success." Summer 1997, pp. 1-9. The author discusses on-line and other electronic products as sources for industry news, industry statistics, company statistics, policies and coverages, actual policy forms, company ratings, laws and regulations, international information, and "one stop" shopping. The Appendix contains information on how to contact the various sources mentioned.

Saporito, Patricia L., "Natural Catastrophe Research Resource References." February 1993, pp. 65-68. The author lists statistical resources (both U.S. and international), exposure evaluation services and systems, associations, books, experts and consultants, and conferences/symposiums for wind, tornado, hurricane, and earthquake.

Sewell, James H., "Forecasting Mail Response." January 1989, pp. 33-35 and Ward, Jack, "Mail Survey Response Curves." April 1988, pp. 55-56. The authors of these related articles discuss the use of experience bases to make early predictions of the total response from mail drops, including mail survey research. The outcomes can be useful in planning and assessing mail as a methodology for both direct response marketing and market research.

Wilson, J. Brad, "Case Study in Mail Survey Research: The S.I.R. New Member Survey." Spring 1997, pp. 19-29. The author provides an example of how to analyze data provided by a mail survey and write up a report based upon the findings. The questionnaire is included.

Risk Management
Cozzolino, John M. and Gaydos, Eugene M., "The Risk of Catastrophic Property Loss." March 1992, pp. 17-34. Catastrophe losses are an important determinant of insurance industry profitability. During the period 1968-87, annual catastrophe losses averaged less than 1.0% of surplus. For the longer term catastrophe losses average 2.1% of surplus. Are there ways to raise the accuracy of catastrophic loss forecasting? The authors suggest a model to improve the accuracy of catastrophic property loss predictions. The model is then tested against experience.

Denlea, Leo E., Jr., "Limiting the Impact of Catastrophes: The Natural Disaster Protection Act." December 1993, pp. 1-5. The CEO of the Farmers Group of Insurance Companies provides his perspective on the value of the Natural Disaster Protection Act. He begins with an explanation of its three main components (disaster loss reduction, expanded insurance protection, and the reinsurance program), and then argues for increased industry support of the Act.

Friedman, Don, "Hurricane Hugo Maps." December 1989, pp. 51-58. The author shares maps used in the analysis of Hurricane Hugo, which were prepared by the Natural Hazards Research Program of The Travelers.

Friedman, Don, "Is Hugo a Forerunner of Future Great Hurricanes?" (Part I). July 1990, pp. 1-38. Was Hurricane Hugo a truly unique storm in terms of its severity, or would other recent hurricanes have produced comparable damage levels? If Hugo were not unique, then could Greenhouse-induced global warming be expected to increase the frequency of similar storms in the future? This paper addresses the question of Hugo's uniqueness. In the next issue of Research Review, the author discusses the expected increase in the frequency of similar storms due to global warming.

Friedman, Don, "Is Hugo a Forerunner of Future Great Hurricanes?" (Part II). November 1990, pp. 1-38. In Part I of this paper, the author compared 1989's Hurricane Hugo to 247 hurricanes that hit United States coastlines during the past 118 years. He discussed storm characteristics and how they affect damage production. Then, using mathematical modeling and computer simulation, the author assessed the damage production potential of these past storms were they to recur today under present climatic conditions. Five percent produced damage potentials equal to or greater than Hugo's. Having established that Hugo was not a unique storm, the author considers whether it is a forerunner of future great hurricanes. Part II focuses on Greenhouse-induced global warming and how it might affect the frequency and severity of storms.

Friedman, Don G., "Maximum Wind Speeds for Hurricane Andrew in Florida." February 1993, pp. 55-63. Referring to computer simulation maps, the author discusses the wind speed controversy surrounding Hurricane Andrew and the importance of these maximum wind speed estimates.

Pahl, Teresa L., "Business Interruption Interdependency: A Practical Approach for Today's Risk Manager." December 1989, pp. 41-43. The author describes the four basic types of losses in the business interruption exposure as well as steps the risk manager might use for assessing and quantifying the concept of interdependency.

Schiavo, Michael F., "Crime Prevention Made Easier: The Datatag Story." Spring 1998, pp. 9-13. This case study concerning motorcycle theft in the UK is valuable for insurers and risk managers in several ways. The author demonstrates how a major business survival issue was effectively addressed, employing basic risk management principles of problem identification, analysis of available solutions, program implementation, and results monitoring. In addition, it shows how an intended application can be adapted to address specific needs of other industries.

Segraves, Donald W., "Earthquakes' Potential Devastation on Insurers: Whose Fault Will It Be?" December 1989, pp. 1-12. The pool of balance sheet assets accumulated by insurance companies to cover the needs of customers in the event of a major catastrophe is called policyholder surplus. The pool was about $104 billion in 1987. The author assesses the potential drain on policyholder surplus that could result from a major earthquake and discusses the industry initiative to create a national earthquake fund.

Systems
Ernst, Martin, "The Next Computer Advances: Ambitions, Realities, and Impacts." January 1989, pp. 1-7. What can be expected from Expert Systems over the next decade? This paper is a futurist's view of expected advances in computer capabilities, artificial intelligence, and electronic publishing. It discusses the current state of the art and the impact each area is likely to have on what has become known as the knowledge revolution, examines several technological advances which will transform how work is done, and highlights some management issues of the future.

Haeckel, David A. and Roussey, Robert S., "Computer Viruses." January 1989, pp. 45-47. The authors discuss what a computer virus is, how to know whether your systems have a virus, what can be done to minimize the threats, and what security practices might be followed.

Klimczak, Benjamin, "TURBOMAC: Networked Delivery of Problem Solving Knowledge." December 1989, pp. 25-39. Development of expert systems in insurance underwriting and claim management has been proceeding rapidly, but these are only the more obvious areas of opportunity. Applicability exists in any situation where relatively complex information management problems are combined with time critical decision requirements and a short supply of skilled decision makers. The author discusses an engineering system for loss control networked to client insureds.

Lawrence, Philip J., "The Future of Expert Systems in the Financial Services Industry." July 1988, pp. 1-6. Software systems that emulate an expert's process of receiving, sorting, and evaluating data for decision purposes are called expert systems. A major area of productivity enhancement via such systems has been military applications, where relatively complex information management problems are combined with time critical decision requirements and a short supply of skilled decision makers. These attributes are also characteristic of financial services marketing, and rapid development of expert systems within the financial services industry is likely.

Smith, Donald J., "The Death of the Paper Policy: Future or Fantasy." December 1992, pp. 37-41. The author suggests the smart "Policard" holds great promise for the insurance industry both for profit and productivity. It can reduce expenses associated with paper policies – paper, printing, and postage – and increase the efficiency and productivity of personnel. Convenience and the compactness of the card would serve to increase customer satisfaction. The savings for an insurer would more than offset the costs of moving into the future with the policy on a chip smart card.

Wilson, G. Larry, "Finding Effective Technology Solutions." February 1993, pp. 45-54. The author examines how insurers can create an electronic workplace that enables knowledge workers to serve the company’s insureds one time, in real time, from beginning to end, with as few transaction interruptions as possible using electronic processes, electronic information, new sources of data, and electronic work management.

Training
Grecsek, Ernest E. and Marshall, Donald L., "A Partnership With Education: The Nationwide Insurance Investment." July 1992, pp. 73-76. The author discusses Nationwide Insurance’s corporate involvement in the insurance education process with its research internships and MBA course.

Hampton, John J., "Insurance Education: The Past Twenty Years and the Next Twenty Years." August 1991, pp. 27-32. The business of insurance is changing rapidly. Are the skills of insurance people changing sufficiently to keep up? Specifically, are colleges and universities preparing students to be good participants and managers in the emerging global insurance and risk management market? What contribution do they make? How should we get to know the quality of insurance education? What should we measure, and what adjustments should we make to the educational process?

McFerson, D. Richard, "Defining the ‘PROS’ in Research and Planning." March 1992, pp. 35-37. There are many requirements for professionals in research and planning. The author, CEO of the Nationwide Insurance Enterprise, emphasizes four: promotion, responsibility, objectivity, and schooling.

Williams, Numan A., "The Future of Insurance Education: Another View." July 1992, pp. 69-72. Responding to the article by John J. Hampton in the August 1991 Research Review, this insurance professor criticizes the industry for not hiring insurance majors and not counseling with college deans or with the AACSB to include insurance and risk management in the business school curriculum. Without the active support of the insurance industry, he predicts that insurance education at colleges and universities will die in the near future.

Underwriting
Cozzolino, John M., "The Case for Native Intelligence (NI) in Property-Casualty Underwriting." January 1989, pp. 41-44. The idea that expert systems can enhance the effectiveness of underwriting by bringing "good underwriting" to less experienced practitioners presumes we begin from a base of expert knowledge. How good is that base? The widely known tendency for the underwriting results of a block of new business to improve over time suggests there exists considerable room for the development of better risk selection criteria up front, even before its integration into an expert system.
Cozzolino, John M. and Peter J. Mikolaj, "Applications of the Piecewise Constant Pareto Distribution." Summer 1998, pp. 39-59. There is a general agreement that the Pareto distribution provides a closer fit to the frequency of large losses than most other well-known choices. This paper advocates a piecewise constant approximation of the Pareto. The motivation for this choice is to represent severity within layers using a realistic framework. A method of parameter estimation is discussed. The paper examines empirical results from fitting the piecewise Pareto to loss data. The sensitivity of results to modifications of severity layer parameters is investigated. Stability in the parameter estimates yielding total frequency, aggregate loss, and variance of aggregate loss is demonstrated from empirical results.

Cozzolino, John M. and Mikolaj, Peter J., "The Use of Layer-Specific Constant Probability Density for Determining the Variance of Aggregate Loss." October 1993, pp. 47-66. The authors explore a method for determining the optimal risk retention level based on organizing aggregate loss by severity layers. Using the piecewise constant approximation to the Pareto distribution as a structure for severity, they employ the Poisson distribution to model frequency. Properties of the expected annual aggregate loss distribution are examined, and its layered structure is developed. The model's output is then tested against measures of risk. The result is a framework for evaluating optimal combinations of retention and risk transfer.

Hoefer, Peter and Cozzolino, John, "Exploring the Impact of Rate Roll Backs on Different Income Segments." July 1992, pp. 27-35. Roll back legislation is often defended by its proponents as providing insurance cost relief to low income households. Using a utility theory based model, the authors, however, suggest that very group is the most likely to suffer from the consequences of rate roll backs.

Hoell, Herbert W., "Will the Underwriter of the 1990's Really Be a Computer?" May 1989, pp. 63-64. The author suggests that in an expert system environment, the underwriter has an opportunity to concentrate more on pure underwriting decision making situations and less on clerical, information gathering activities. Such focusing of attention should sharpen an underwriter’s ability and more quickly raise the underwriter’s level of experience.

May, Kenneth M., "Insurance Underwriting Knowledge Representation Using Commercial Rule Based Shells." January 1989, pp. 9-17. As electronic underwriting knowledge representation (i.e., expert systems) continues to expand within the insurance industry, a growing number of personal computer based systems have become commercially available. These "low-end" approaches offer the opportunity for an insurance company to work with expert systems technology "in-house" for a relatively small investment in hardware, software, and the recruitment of specialized personnel. The author surveys a number of the particular configurations and gives some examples of how "low-end" commercial rule based shells operate.

Workers' Compensation
Maatman, Gerald L., "Health Care Reform and Property-Casualty Insurance." October 1993, pp. 67-72. From his perspective as CEO of the Kemper National Insurance Companies, the author maintains that insurers need to avoid the mistake of thinking that health care reform is only the concern of health insurers. He explains why property-casualty insurers need to be concerned about how workers’ compensation will fit into any system.

Oxfeld, Eric J., "The Regulatory and Legislative Environment for Workers’ Compensation." Fall 1996, pp. 63-67. The author, Assistant General Counsel for the American Insurance Association, discusses the nationwide reform efforts of the AIA at the state level. He reviews the AIA program which includes both benefits reform and rating reform, and then comments on numerous challenges yet to be faced.

Pfennigstorf, Werner and Gifford, Donald G., "A Comparative Study of Liability Law and Compensation Schemes in Ten Countries and the United States," a reprint of the concluding chapter from their book of the same name. December 1992, pp. 51-57.

Puelz, Robert, "Workers' Compensation Cost Containment: Evidence Evaluating the Effectiveness of Available Techniques." Fall 1994, pp. 1-25. This paper won the Society's 1994 Research Competition. The author examines the use and evaluation of workers' compensation cost containment techniques by risk managers in the state of Texas. The study focuses on 11 standard cost containment techniques: an integrated safety program, pre-placement screening, the caring employer concept, medical management, claims administration, modified duty and return to work programs, employee safety incentives, cost allocation, substance abuse, salary supplements, and employee disciplinary programs. The findings indicate each technique has the potential for producing savings; however, statistically significant differences exist with regard to their implementation, acceptance, and overall success.

Reda, Philip J., "Workers' Compensation: The Horseplay Doctrine in Connecticut." March 1994, pp. 11-16. Insurance research usually involves the gathering and analysis of quantitative and qualitative information, but it can also include getting to understand the process by which terms, practices, and coverages evolve. This paper briefly describes the gradual change in definition of compensable injuries sustained during horseplay while at work, one element of the workers' compensation issue.