May 31, 2018 09:45
Photo : Freepik
The Co-operators has offered a financial contribution of $ 500,000 which will allow for the creation of the Chair the Co-operators in analysis of the actuarial risks (CARA) at theUniversity of Quebec in Montreal (UQAM). The Journal of insurance was present at the inauguration of the Chair on the 30th of may last.
It is the first structure of its kind in Québec in the field of actuarial science. The Chair’s work will focus primarily in the property and casualty insurance.
“With the expertise of the Co-operators, we will continue applied research in the automobile insurance on the quebec and canadian markets, as we expect the market to be down in the next few years. The activities of the Chair will also have an interest in insurance products to less conventional, ” says the holder of the Chair of CARA and a professor in the mathematics department of UQAM, Jean-Philippe Boucher.
Prevention work more effective
Future research projects include analyses of fraud for the claim, analyses of the long-term profitability of certain customers and the development of new insurance products. The collaboration will allow the Chair CARA to continue its activities until at least 2023.
“The segmentation models sophisticated developed by the team of the Chair will propose pricing plans statistically, more fair and more just. A more precise identification of the causes of loss most likely will pave the way for prevention work more effective “, said the vice-president, business intelligence and chief of data and analytics at the Co-operators, Carl Lambert.
According to Mr. Boucher, the academic research is largely dependent on the practical challenges of the insurance industry. “Large databases in the world of insurance contain a wealth of information that can be used by models, advanced forecasting, to better segment risk according to the insured, or a better understanding of the incentives for the claim. The use of these sources is a major challenge for the actuarial for the next few years. “
Train new graduates
UQAM is an important pillar in the training of actuaries in Quebec. The bachelor’s degree in actuarial science includes a dozen professors and over 400 students enrol each year.
“Half of our actuaries Montreal from UQAM. It was so normal for us that the partnership will make within this university, ” said the senior manager, pricing and segmentation by the Montreal office of the Co-operators, Hugue Laquerre.
The Chair will also act as a bridge between students and the environment. “As for UQAM as for us, we see a benefit. The Chair gives access to a good integration between industry and the university. Students will not only have access to scholarships, but also to people in the industry, ” explains Mr. Lambert.
Intensification of efforts in analytical
The funding of the Chair is part of a desire of growth analytics at the Co-operators. In 2017, the team analysis of massive data the group has allowed us to model a insurance that is able to take on the risk of flooding of shores, despite the lack of historical data.
Last February, the Co-operators has expanded its team related to actuarial science from 110 to 120 employees in Quebec. “We’re going to continue to increase our staff within the company and to invest in actuarial science. We anticipate several new hires, including students, ” said Mr. Lambert in the Journal of the insurance.