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Data/Technology 3 - Data Management Panel Discussion CAS Ratemaking Seminar March 2005. Panelists. Jason L. Russ, Consulting Actuary, Milliman, Inc. Michael L. Toothman, Consultant Actuarial & Risk Consulting Services Peter Marotta, Principal, ISO Gary Knoble, Vice President, The Hartford.

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Data/Technology 3 - Data Management Panel Discussion CAS Ratemaking Seminar March 2005

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  • Jason L. Russ, Consulting Actuary, Milliman, Inc.
  • Michael L. Toothman, Consultant Actuarial & Risk Consulting Services
  • Peter Marotta, Principal, ISO
  • Gary Knoble, Vice President, The Hartford
data management and the actuary

Data Management and the Actuary

An ABCD Perspective

Michael L. Toothman

the role of the abcd
The Role of the ABCD
  • Consider complaints
  • Counsel Actuaries
  • Recommend disciplinary action
  • Respond to requests for guidance
  • Mediate issues
the role of the abcd1
The Role of the ABCD

Consider Complaints

  • Conduct Investigations
  • Hold Hearings
the role of the abcd2
The Role of the ABCD

Counsel Actuaries

  • A primary role for the ABCD
  • Possible result at several points in the ABCD process
        • In lieu of an investigation
        • After the investigation
        • After a hearing
the role of the abcd3
The Role of the ABCD

Recommend Disciplinary Action

  • Only the participating organizations have authority to discipline their members
  • Occurs in well under 5% of ABCD case
the role of the abcd4
The Role of the ABCD

Respond to Requests for Guidance

  • Over 50% of ABCD cases
  • Key function of the ABCD
the actuary s responsibility
Comply with Code of Conduct

Comply with Qualification Standards (both general and specific)

Comply with Standards of Practice

The Actuary’s Responsibility
the actuary s responsibility1
Precept 1:

An Actuary shall act honestly, with integrity and competence, and in a manner to fulfill the profession’s responsibility to the public and to uphold the reputation of the actuarial profession.

The Actuary’s Responsibility
real life issues
Real Life Issues
  • ABCD classifies cases as
      • Practice
      • Conduct
  • Majority of cases are conduct issues
  • Very few cases have involved data quality

Code of Professional Conduct

The Code of Professional Conduct identifies the professional and ethical standards required of actuaries who belong to the Academy. The SOA, ASPA, the CAS, and the CCA have adopted identical codes.

abcd case resolution
ABCD Case Resolution

ABCD cases considered during 2003:

abcd case resolution1
ABCD Case Resolution

ABCD cases considered during 2003:


Action by Individual ABCD members

Replied to requests for guidance 30

Mediated 1

Disposition by Chairperson and Vice Chairpersons

Dismissed 4

(Referred to Investigators in 2003—4)

Disposition by Whole ABCDafter investigation

Dismissed 3

Dismissed with guidance 2

Counseled 2

Counseled after hearing 2

Recommended suspension 1

Total 45

CASES IN PROGRESS (as of 12/31/03)

Pending investigation 7

Pending hearing 1

Pending receipt of more information 6

Request for Guidance pending 2

Total 16

abcd case resolution2
ABCD Case Resolution

Since its inception in 1992, the ABCD completed its cases as follows:

who are we
Who Are We?
  • IDMA is a non-profit professional association advancing data management through education
  • Established March 14, 1984
  • First annual meeting December 10, 1985
  • April 1990 – first graduates received professional designations
  • January 2005:
    • CIDMs: 119
    • AIDMs: 121
mission and purpose
Mission and Purpose
  • Promote professionalism in the Data Management discipline, principally through education
  • Create and maintain a curriculum for developing data management professionals, test professional proficiency, and provide professional certification
mission and purpose1
Mission and Purpose
  • Provide a forum for the discussion of insurance data management issues
  • The focus of such discussions is on the satisfaction of insurance data needs in a manner that takes advantage of current technology and is efficient and consistent with data quality
  • Statistical Agents
  • Regulators
  • Third Party Administrators
  • Consultants
  • Property & Casualty Insurers
  • Life Insurers
  • Trade Associations
  • Technology Vendors
  • Associations
  • Societies
functions represented
Functions Represented
  • Accounting/finance
  • Data administration
  • Actuarial
  • Operations/administration
  • Claims
  • Statistical
  • Data processing
  • Data quality
  • Underwriting
  • Product development
products and papers
Products and Papers
  • Data Management Value Propositions
  • Monthly data management bulletin (EDMIS)
  • Data Quality Certification Model
  • White Paper on Data Quality
  • Recommended Steps for Legislators and Regulators to Follow in Issuing Data Requests
  • White Paper on Recommended Standards for Injury Coding
  • Inventory of Carrier Reports
  • Co-sponsor, with the Casualty Actuarial Society (CAS), an academic paper competition
  • The AIDM designation requires passage of four IDMA examinations
  • The CIDM designation also requires the passage of coursework from one of four organizations - CPCU, LOMA, SOFE or CAS
idma courses insurance data collection and reporting idma i
IDMA Courses: Insurance Data Collection and Reporting (IDMA I)

The course addresses the core of

most data managers' responsibilities,

the collection and reporting of

statistical and financial insurance data.

insurance data quality idma 2
Insurance Data Quality (IDMA 2)

The course update focuses on very specific

topics concerning data quality and how to

maintain quality. The syllabus includes texts

from two leaders in the field – Thomas C.

Redman and Larry P. English, and materials

from the CAS and IDMA.

systems development and project management idma 3
Systems Development and Project Management (IDMA 3)

The course presents and analyzes in

detail the many aspects of successful

project management: staffing,

implementation, leadership and other roles,

“Project Authority”, time management,

scheduling techniques, dealing with

problems cultural and otherwise, and

effective strategic planning.

data management administration and warehousing idma 4
Data Management, Administration, and Warehousing (IDMA 4)

This course explores data flexibility and

shareability concepts which are aimed at

increasing the availability and usefulness of

Data, as well as, an introduction to basic

concepts and principal tools for maximizing

the usability and value of data. The Bill

Inmon concept of the Corporate Information

Factory is explored. In this 2003 update, new

focus and attention are given to data standards.

data management for insurance professionals
Data Management for Insurance Professionals

This overview course is highly recommended for a

broad audience including new hires, IT personnel

who want to deepen their knowledge of the

business side of data management, anyone who

manages data in the industry, and anyone who

needs to use or communicate data – from

actuaries to underwriters. It is clear, well organized,

well written, illuminating, and structured for easy


Student proficiency is tested via a 100-question,

multiple-choice exam, and the successful

student will earn a diploma.

data management value proposition see appendix for details
Data Management Value Proposition(see Appendix for details)
  • Reduces cost of collecting, storing and dispersing data
  • Improves data quality, establishes standards
  • Provides quality controls
  • Protects privacy and confidentiality
contact information
Contact Information
  • Headquarters:

545 Washington Boulevard, 22-16

Jersey City, NY 07310-1686

  • Website:
  • Executive Director: Richard Penberthy
    • Email:
    • Phone: 201-469-3069
    • Fax: 201-748-1690
idma data management value proposition
IDMA: Data Management Value Proposition

Value: Data Quality

  • Good data management improves data:
    • Validity—Are data represented by acceptable values?
    • Accuracy—Does the data describe the true underlying situation?
    • Reasonability—Does the data make sense? How does it compare with similar data from a prior period?
    • Completeness—Do you have all the data you need?
    • Timeliness—Are the data current?
  • Allowing the data user to have more confidence in, and a better

understanding of, the data being used.

idma data management value proposition1
IDMA: Data Management Value Proposition

Value: Better Decisions

  • Better decisions result from better data.
  • Better priced risks—rates, increased limits, etc.—means improved bottom line, greater customer satisfaction, improved customer retention, increase in number of customers
  • Improved ability to explain, defend (and testify as necessary) decisions with better data behind the decision, documented controlled data management processes in place helps to prove the value of data being used
  • Improved data integrity, data utility
  • As data is and can be sliced ever more finely, attention to quality, privacy and confidentiality is critical. Data management skills can ensure that.
idma data management value proposition2
IDMA: Data Management Value Proposition

Value: Better Decisions (continued)

  • The user’s time is freed up for more focus on core professional responsibilities, decisions and analysis when data quality is assured under the guidance of the data manager.
  • Putting data management under the responsibility of a data management professional allows both disciplines to do what they do best and are best trained to do.
  • In many cases, skilled data managers can assume handle functions such as responding to special calls.
  • Predictive modeling is improved when better data are available, allowing for better existing products and better new product development.
data management and the actuary1

Data Management and the Actuary

The Value of the Data Manager to the Company Actuary

Gary Knoble

idma data management value proposition3
IDMA Data Management Value Proposition
  • Value to Actuaries
    • Better Decisions
    • Data Quality
    • Internal Data Coordination
    • Compliance
internal data coordination
Internal Data Coordination
  • Reduces cost and time of data collection, storage, and dispersal
  • Promotes interoperability of data and databases – data integration
  • Manages data content and definitions
  • Advocates data standards
  • Ensures quality and communication between sources
enterprise data initiative
Enterprise Data Initiative
  • Mission:
    • To provide direction and oversight to the Actuarial and business communities concerning data, data management (including quality), data analytics, including sourcing, manufacturing, and delivery.
    • To insure data integrity and availability in actuarial work products and business requirements.

Lack of enterprise vision

Lack of communication between divisions

Independent resourcing for initiatives


Actuarial vision to influence enterprise vision

Communication across divisions

Shared resources

vision cont
Independent budgets

Data planning in business units without Actuarial representation

Data sources built for individual needs

Redundant data

Budget coordination

Actuarial presence in all business data planning

Data sources built from common plan

Minimize redundancy

Vision (cont.)
vision cont1
Redundant sources

Lack of standards

Lack of meta data

Lack of business rules

Lack of knowledge transfer

Authoritative source


Meta data repository

Documented rules

Knowledge transfer through documentation and rules

Vision (cont.)
vision cont2
Disparate processes for managing data

Uncoordinated vendor relationships

Inconsistent technologies

Different tools in silos

Lack of reconciliation

Core processes

Standard vendor management

Consistent technologies

Coordinated tools

Authoritative reconciled sources

Vision (cont.)
an approach
An Approach
  • Framework for Governance
  • Rules/Operational Policies
  • Change data process
  • Technology infrastructure
  • Measure results