BNP Paribas Cardif, sponsor of the Chair of Excellence in Data Analytics & Models for Insurance
The success of this first Insurance Modeling Management Chair of Excellence has encouraged BNP Paribas Cardif to extend the partnership for a further five years with sponsorship of the Data Analytics & Models for Insurance (DAMI) Chair of Excellence.
The new Chair addresses two main areas of research:
- Continuing the work already begun on models, their regulatory and accounting environment, and their use in insurance company management
- Data Analytics, its governance and the interactive relationship between predictive and simulation models to make the connection between gathering new data about policyholders, modeling the behavior and incorporating those behavioral traits into forecasting models
The work done as a result of the DAMI Chair and the interaction between Chair members and the teams of BNP Paribas Cardif will make it possible to improve modeling and data application techniques for decision-making, gain a clearer understanding of the interactions between models and the management decision-making process, and identify the limitations of models and new Analytics tools and their ultimate micro- and macro-economic hazards.
Focus on the 1st Chair:
Between September 2010 and September 2015, BNP Paribas Cardif supported and funded the M2A Insurance Modeling Management Chair of Excellence in partnership with IFSA (the French Institute of Financial and Insurance Sciences), the Université Lyon 1 actuarial faculty.
Supported by the Laboratory of Actuarial and Financial Sciences and hosted by the Louis Bachelier Institute Risk Foundation, which also administered the program, the M2A Chair made a valuable contribution to top-level international research in insurance and risk management.
The goal of the M2A Chair was to improve the way models are used in insurance company management decision-making processes, and to make their possible contribution and practical limitations more explicitly clear, without falling into the trap of blind faith or, conversely, rejecting the idea categorically on the basis of technical complexity.The basis of the initial project was that the Solvency 2 reforms would trigger a process of profound change in insurance companies in terms of modeling, and the belief that financial, actuarial and risk decisions would rely increasingly on the use of sophisticated and interdependent models.
Around a hundred research publications and articles were produced over the 5-year research period. Many events were also organized and hosted by the M2A Chair, including technical seminars for researchers and BNP Paribas Cardif staff, and shared participation in external events in partnership with the Louis Bachelier Institute and the Institute of Actuaries.
On October 6 and 7, this initial research partnership concluded with a closing conference* entitled Modeling in Life Insurance: a management perspective. Its 140 delegates included insurance industry leaders (AXA, AG Insurance, BNP Paribas, etc.), researchers and regulators (ACPR, Banque Nationale de Belgique, etc.).
*The Modeling in Life Insurance: a management perspective conference provided the opportunity for researchers and institutions to discuss modeling issues. Delegates discussed the role of models in decision-making processes, the use of models and the behavior of stakeholders, model validation and management processes, the risks associated with models, the governance of risk management, and the governance of Data Analytics in insurance.
Hosted and funded by the BNP Paribas Cardif Insurance Modelling Management Chair, the event was held at ISFA (Lyon) and sponsored by the ACPR Regulation & Systemic Risks Research Initiative.