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Finance and Risk Management Research Projects

Background and Purpose

The Society of Actuaries (SOA) Research Institute’s Committee on Finance and Risk Management Research (CFRMR) is seeking proposals for research projects that will produce information, data, theoretical models and/or empirical tools useful to actuaries practicing in investment and other finance-related areas.

The CFRMR will convene a project oversight group for each project that is selected for sponsorship. The project oversight group will oversee the progress of the project. This oversight group may include members of the CFRMR, SOA Research Institute staff, and/or others who are knowledgeable and interested in the subject matter of the proposal.

Projects will be funded or partially funded by the SOA. The SOA will budget funds on a project-by-project basis, depending on the perceived value of a project as determined during the selection process (described below). Larger budget projects may require joint funding with several groups within the SOA and/or other organizations. This may lengthen the decision time for awarding of such projects.

Proposals are welcome any time and will be reviewed for funding consideration by the CFRMR at its next meeting after receipt of the proposal. It is not uncommon for the CFRMR to request additional details on a proposal for subsequent discussion and evaluation.

Research Objective

The specific subject matter, methods, and presentation of results are intentionally undefined in this RFP, with the hope that many unique and valuable projects will be proposed. Examples of finance research projects supported by the SOA in the past can be found at https://www.soa.org/research/topics/finance-topic-landing/. In addition, researchers will find other research projects of interest to the CFRMR under Risk Management at https://www.soa.org/research/topics/risk-mgmt-topic-landing/. The guiding principle above, of being (immediately) useful to practicing actuaries, should be borne in mind.

Proposal

To facilitate the evaluation of proposals, the following information should be submitted:

  • Resumes of the researcher(s), including any graduate student(s) expected to participate, indicating how their background, education and experience bear on their qualifications to undertake the research. If more than one researcher is involved, a single individual should be designated as the lead researcher and primary contact. The person submitting the proposal must be authorized to speak on behalf of all the researchers as well as for the firm or institution on whose behalf the proposal is submitted.
  • An outline of the approach to be used (e.g. literature search, model, etc.), emphasizing issues that require special consideration. Details should be given regarding the techniques to be used, collateral material to be consulted, and possible limitations of the analysis.
  • A description of the expected deliverables and any supporting data, tools, or other resources.
  • Cost estimates for the research, including computer time, salaries, report preparation, material costs, etc. Such estimates can be in the form of hourly rates, but in such cases, time estimates should also be included. Any guarantees as to total cost should be given and will be considered in the evaluation of the proposal. While cost will be a factor in the evaluation of the proposal, it will not necessarily be the decisive factor.

Please note that as a policy, the SOA Research Institute generally does not provide funding to cover academic institution overhead expenses.

As a guide for developing the project budget, please review the Historical Project Cost Guide (see Appendix)

  • A schedule for completion of the research, identifying key dates or time frames for research completion and report submissions. The CFRMR is interested in completing projects in a timely manner. Suggestions in the proposal for ensuring timely deliver, such as fee adjustments, are encouraged.
  • Other related factors that give evidence of a proposer's capabilities to perform in a superior fashion should be detailed.

Selection Process

The CFRMR will appoint a Project Oversight Group (POG) to oversee the project. The CFRMR is responsible for the selection of the proposal to be funded. Input from other knowledgeable individuals also may be sought, but the CFRMR will make the final decision. The SOA's Research Actuary will provide staff actuarial support.

Questions

Any questions regarding this RFP should be directed to Research-AR@soa.org.

Notification of Intent to Submit Proposal

If you intend to submit a proposal, please e-mail written notification to Research-AR@soa.org.

Submission of Proposal

Please e-mail a copy of the proposal to Research-AR@soa.org.

Note: Proposals are considered confidential and proprietary.

Conditions

The CFRMR reserves the right to not award a contract for this research. Reasons for not awarding a contract could include, but are not limited to, a lack of acceptable proposals or a finding that insufficient funds are available. The CFRMR also reserves the right to redirect the project as is deemed advisable.

The CFRMR plans to hold the copyright to the research and to publish the results with appropriate credit given to the researcher(s).

The CFRMR may choose to seek public exposure or media attention for the research. By submitting a proposal, you agree to cooperate with the CFRMR in publicizing or promoting the research and responding to media requests.

The CFRMR may also choose to market and promote the research to members, candidates, and other interested parties. You agree to perform promotional communication requested by the CFRMR, which may include, but is not limited to, leading a webcast on the research, presenting the research at an SOA meeting, and/or writing an article on the research for an SOA newsletter.

Conflict of Interest

You agree to disclose any of your material business, financial and organizational interests, and affiliations which are or may be construed to be reasonably related to the interest, activities, and programs of the CFRMR.

Appendix

The cost ranges below are intended as a guide for budgeting project costs for proposals in response to SOA Research Institute Request for Proposals (RFP). Please note these figures span the 33rd to 66th percentiles for all projects as well as projects that involve a specific approach (lit review, survey, etc.). They are based on historical costs over several recent years. Expected costs for some RFPs may fall outside these ranges depending on the nature of the work and resources required for completion.

All Contracted Projects

This category includes all contracted projects that the Institute has undertaken within the last several years.

The 33rd-66th percentile project costs range is $25,000 - $50,000.

Literature Reviews

This category includes projects that involved only a literature review or the cost for the portion of a larger project that included a literature review.

The 33rd-66th percentile project costs range is $15,000 - $20,000.

Surveys

This category includes all projects that had a survey as their primary component.

The 33rd-66th percentile project costs range is $28,000 - $55,000.